{"id":359698,"date":"2026-06-13T21:37:10","date_gmt":"2026-06-13T21:37:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/359698\/"},"modified":"2026-06-13T21:37:10","modified_gmt":"2026-06-13T21:37:10","slug":"federal-prosecutor-calls-california-a-fraudsters-paradise-amid-busts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/359698\/","title":{"rendered":"Federal prosecutor calls California a &#8216;fraudster&#8217;s paradise&#8217; amid busts"},"content":{"rendered":"\n<p>NEWYou can now listen to Fox News articles!\n  <\/p>\n<p data-layout-index=\"5\" class=\"speakable\">A top federal prosecutor in Southern California told <a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061935\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.foxnews.com\/media\">Fox News<\/a> that the state has transformed into a &#8220;fraudster\u2019s paradise,&#8221; accusing state leaders of allowing millions of dollars in fraud.<\/p>\n<p data-layout-index=\"5\" class=\"speakable\">Speaking on &#8220;<a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061936\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.foxnews.com\/category\/shows\/saturday-in-america\">Saturday in America<\/a>,&#8221; First Assistant U.S. Attorney for the Central District of California Bill Essayli highlighted a string of federal busts, including a $45 million Medicare Botox scam. He added that federal investigators &#8220;will not hesitate&#8221; to prosecute any officials found to be enabling the fraud.<\/p>\n<p data-layout-index=\"5\">&#8220;California is truly the fraudster&#8217;s paradise,&#8221; Essayli said Saturday, later adding, &#8220;It&#8217;s very hard to tell sometimes if it truly is just massive incompetence or corruption, and that&#8217;s a very fine line sometimes.&#8221;<\/p>\n<p data-layout-index=\"5\">&#8220;If we ever develop evidence that there are people inside the government who are benefiting from the fraud or who are enabling the fraud, we will not hesitate to charge them,&#8221; he said.<\/p>\n<p data-layout-index=\"5\"><a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061937\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.foxnews.com\/us\/california-doctor-convicted-45m-medicare-fraud-scheme-funded-luxury-vacations-12k-crossbow\">CALIFORNIA DOCTOR CONVICTED OF $45M MEDICARE FRAUD SCHEME THAT FUNDED LUXURY VACATIONS AND A $12K CROSSBOW<\/a><\/p>\n<p> <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/06\/bill-essayli-fraud-fox-news.jpeg\" alt=\"Bill Essayli discusses arson charges in Ontario warehouse fire case.\" width=\"1200\" height=\"675\"\/> <\/p>\n<p>Bill Essayli, first assistant U.S. attorney for the Central District of California, answered questions during a news conference outside the San Bernardino County Sheriff\u2019s Department on April 10, 2026, in Rancho Cucamonga, California. (Anjali Sharif-Paul, The Sun\/ via Getty Images)<\/p>\n<p data-layout-index=\"5\">Essayli said new leadership at the <a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061938\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.foxnews.com\/category\/politics\/justice-department\">Justice Department<\/a> is &#8220;laser-focused&#8221; on going after those committing fraud and saving the American people money. He discussed cases in his district, including what the FBI in Los Angeles called the &#8220;largest Botox fraud scheme in the United States.&#8221;<\/p>\n<p data-layout-index=\"5\">Violetta Mailyan, a doctor in California, <a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061939\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.justice.gov\/opa\/pr\/california-doctor-convicted-45m-botox-fraud-scheme-targeting-medicare\">was convicted in a $45 million scheme<\/a> to defraud Medicare by submitting claims for Botox injections that either were not given or were unnecessary.<\/p>\n<p data-layout-index=\"5\">&#8220;The Botox scheme was a conviction right here in Los Angeles, and we&#8217;re going after those assets. We&#8217;re [going to] get probably $20 million of her assets returned to the taxpayers after that conviction,&#8221; he said.<\/p>\n<p data-layout-index=\"5\"><a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061940\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.foxnews.com\/politics\/vance-anti-fraud-task-force-suspends-221-california-hospice-healthcare-providers-so-far\">VANCE ANTI-FRAUD TASK FORCE SUSPENDS 221 CALIFORNIA HOSPICE AND HEALTHCARE PROVIDERS SO FAR<\/a><\/p>\n<p data-layout-index=\"5\">Essayli argued that the way California hands out medical licenses is helping to fuel fraud, questioning whether it&#8217;s &#8220;incompetence or corruption&#8221; behind it and adding that state politicians &#8220;really don&#8217;t care&#8221; because it\u2019s federal money being used.<\/p>\n<p data-layout-index=\"5\">&#8220;A lot of this is just like reckless, <a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061941\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.foxnews.com\/media\/new-expose-claims-california-lost-least-180b-fraud-under-gavin-newsom\">massive incompetence and negligence<\/a> to hand out this many licenses without vetting or checking that these are legitimate medical providers,&#8221; he said. &#8220;You really are just handing the keys to the piggy bank over to these fraudsters.&#8221;<\/p>\n<p data-layout-index=\"5\"><a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061942\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.foxnews.com\/media\/decorated-general-links-trump-iran-strikes-historic-bombing-blitz-forced-vietnam-peace-pact\">DECORATED GENERAL LINKS TRUMP IRAN STRIKES TO HISTORIC BOMBING BLITZ THAT FORCED VIETNAM PEACE PACT<\/a><\/p>\n<p data-layout-index=\"5\">The prosecutor also had a message for potential fraudsters, telling them to &#8220;be on alert.&#8221;<\/p>\n<p data-layout-index=\"5\">&#8220;You could be next,&#8221; Essayli said. &#8220;And you probably will be next because we&#8217;re not putting up with it here anymore.&#8221;<\/p>\n<p data-layout-index=\"5\">In March, President Donald Trump chose Vice President <a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061943\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.foxnews.com\/category\/person\/jd-vance\">JD Vance<\/a> to lead the Task Force to Eliminate Fraud. Since then, the White House says it has identified several major fraud rings involving hospice care and childcare facilities.<\/p>\n<p> <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/06\/vance-oz-fraud-fox-news.jpeg\" alt=\"Mehmet Oz and Vice President JD Vance attend White House anti-fraud briefing.\" width=\"1200\" height=\"675\"\/> <\/p>\n<p>Centers for Medicare &amp; Medicaid Services Administrator Mehmet Oz, right, and Vice President JD Vance, left, announced an unprecedented freeze in Medicaid payments to California, citing fraud concerns. (Daniel Heuer\/Bloomberg via Getty Images)<\/p>\n<p data-layout-index=\"5\"><a target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/foxnews.onelink.me\/xLDS?pid=AppArticleLink&amp;af_dp=foxnewsaf%3A%2F%2F&amp;af_web_dp=https%3A%2F%2Fwww.foxnews.com%2Fapps-products\">CLICK HERE TO DOWNLOAD THE FOX NEWS APP<\/a><\/p>\n<p data-layout-index=\"5\">In May, Vance, alongside Centers for Medicare &amp; Medicaid Services Administrator Dr. Mehmet Oz, announced the administration would <a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061945\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.foxnews.com\/politics\/vance-led-task-force-cuts-home-health-hospice-providers-suspected-fraud\">defer $1.3 billion in federal<\/a> Medicaid funding to California due to oversight concerns.<\/p>\n<p data-layout-index=\"5\">At the time, Vance told Fox News host Kayleigh McEnany the administration\u2019s anti-fraud task force was looking into whether government officials enabled the alleged scams. He warned that anyone who <a data-omtr-intcmp=\"fnc_media_article_main-content_article-body_6_4061946\" target=\"_blank\" rel=\"noopener nofollow\" href=\"https:\/\/www.foxnews.com\/politics\/vance-turns-up-heat-states-federal-cash-threat-over-medicaid-fraud-crackdown\">covered up the abuse<\/a> &#8220;ought to go to prison.&#8221;<\/p>\n<p>Madison is a writer for Fox News Digital on the Flash team.<\/p>\n","protected":false},"excerpt":{"rendered":"NEWYou can now listen to Fox News articles! A top federal prosecutor in Southern California told Fox News&hellip;\n","protected":false},"author":2,"featured_media":359699,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[7,9,8,1055,143504,16594,114299,13,146390],"class_list":["post-359698","post","type-post","status-publish","format-standard","has-post-thumbnail","category-california","tag-california","tag-california-headlines","tag-california-news","tag-fbi","tag-fox-news-flash","tag-fox-news-media","tag-health-care-executive","tag-politics","tag-saturday-in-america"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/359698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=359698"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/359698\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/359699"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=359698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=359698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=359698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}