Trump Says Fraud Investigation Of California Has Begun, Mocks California Governor Gavin Newsom

(MENAFN- Live Mint) US President Donald Trump has announced that 'fraud investigation' has begun in California amid probes in Minnesota regarding allegedly fake daycare centres being run in the State by Somali immigrants for federal grants.

In a post on Truth Social on Tuesday, the US President said, "California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that's possible??? The Fraud Investigation of California has begun," where he morphed the name of Democratic California Governor Gavin Newsom.

This news comes in the wake of his scheduled address to House Republicans at the recently renamed Trump Kennedy Center.

Trump, however, did not specify on what is being invesitgated in California or by which state or federal agency.

Also Read | Minnesota Governor Tim Walz drops third term bid amid child care fraud probe

In recent days, Congressman Kevin Kiley (R-CA) has been raising issues of alleged frauds in California running into tens of billions of dollars.

In one of his X posts on 21 December, Kiley claimed that 'California is the Fraud Capital of America'. He went on to allege that there has been '$32 billion in unemployment fraud', '$24 billion in homeless funds "lost"; '$18 billion on nonexistent bullet train'; '$650 million on scrapped 911 system.'

Kiley cited 'a scathing report from the State Auditor' which "identified 8 separate state agencies as“high-risk.” This means they exhibit serious“waste, fraud, abuse, or mismanagement," costing taxpayers billions." Kiley claimed, "The number has doubled during Newsom's tenure."

As per spectator, Julie Su, the acting labor secretary of the US in the Biden administration, left behind a 'massive' record of fraud which dates back to 2020.

EDD fraud in California

As COVID spread, Newsom had declared a state of emergency in California in March 2020. After this, the federal government sent fundings to the state via the Coronavirus Aid, Relief and Economic Security (CARES) law through the state's Employment Development Department (EDD), which was then being overseen by Su, who was then head of California's Employment Development Department (EDD).

The outlet claims that the EDD became a target of fake claims for fraudsters.

Also Read | After Shirley's viral Minnesota day care 'fraud', questions arise over report

Among various examples, the outlet claims that a woman from northern California like a 100 fake claims, while prison inmates in the state filed 35,000 of such claims, resulting in $140 million in undue benefits.

It also reveals that Scott Peterson and Cary Stayner, two convicted murders, also filed such fraudulent claims while death row inmates in the states filed 158 such claims, which gave them in $420,000 in benefits.

Among those who claimed such fraudulent benefits was rapper Nuke Bizzle, whose real name is Fontrell Baines. He not only committed such a fraud, but went on to boast in a music video about the same. He was eventually arrested and given a six months' jail sentence.

In a video titled EDD, Bizzle had claimed,“I done got rich off EDD... I'm in Dior havin' money fun... Ten cards, I'm swiping 10K a day. Counting up bills like a CPA.”

Julie Su, as per a report by California Globe, "forgave $32.6 billion of California's debt" after she became acting secretary of the labour department.

EDD, the publication claims, admitted that it saw losses of around $55 billion during the pandemic.

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