Independent journalist Nick Shirley released a video report alleging widespread fraud tied to government-funded programs in California, stating that his investigation uncovered more than $170 million in questionable activity connected to home health care, daycare centers, and other subsidized services.
Shirley, who previously gained attention for reporting on fraud in Minnesota, said the situation in California appeared to be even larger in scale.
In a post on X accompanying the video, Shirley wrote, “Minnesota was big but California is even bigger… We uncovered over $170,000,000 in fraud as these fraudsters live in luxury with no consequences. Like it and share it, the fraud must STOP.”
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He continued in a follow-up statement, “We ALL work way too hard and pay too much in taxes for this to be happening. These fraudsters have been able to defraud American taxpayers for years without any pushback from the public and politicians. It is time to EXPOSE IT ALL and end America’s fraud crisis.”
The report focuses in part on spending through Medi-Cal, California’s version of Medicaid.
According to Shirley, overall spending has doubled since 2022.
He also highlighted what he described as a sharp rise in hospice care operations, including a reported 1,000 percent increase in hospice activity in Los Angeles in recent years.
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Shirley cited figures indicating that one in every $10 spent on home health care in the United States is spent in Los Angeles County.
During the investigation, Shirley and his team visited multiple daycare centers across the state.
In several cases, they reported that the number of children present did not match the enrollment figures listed in government records.
At some locations, no children were present at all. At one daycare, Shirley said state inspection records showed that inspectors repeatedly found no children on site during visits.
At another location, Shirley reported that children were outside but no adult was visibly present at the building. While visiting these facilities, Shirley reviewed public records detailing government funding associated with each site.
The investigation also examined hospice centers.
Shirley and his team visited a plaza where dozens of hospice-related businesses were listed.
According to the video, attempts to contact staff during business hours were unsuccessful in multiple instances, with no one answering the door.
One individual at the location who identified himself as operating a legitimate hospice business reportedly asked Shirley to leave.
Shirley also pointed to the presence of luxury vehicles in parking lots associated with some of these facilities, including Mercedes and Tesla vehicles.
In the video, Shirley interviewed a person working in California’s healthcare field who discussed concerns about fraud within the hospice industry.
“I think it’s become a trend of fraud, honestly,” the woman said.
“I heard about this about five years ago during Covid, where people were building hospices and selling them. It was like a business these people made. So, it’s an easy way to bill Medicare with people’s beneficiary numbers that people can easily steal.”
She added, “They buy the numbers from people and tell them, ‘Give me your Medicare beneficiary number and I will give you something in return,’” and said that it was more beneficial than stealing a credit card.
She also stated that “anybody can get a hospice license” and that medical credentials are not required to establish such a facility.
According to the report, several individuals working at hospice centers declined to answer questions or avoided providing details about their operations when approached by Shirley.
🚨 Here is the full 40 minutes of my crew and I exposing California fraud, Minnesota was big but California is even bigger… We uncovered over $170,000,000 in fraud as these fraudsters live in luxury with no consequences. Like it and share it, the fraud must STOP.
We ALL work… pic.twitter.com/7nWX9jL6NI
— Nick shirley (@nickshirleyy) March 17, 2026
The video has received more than 9 million views on X since being posted.
After gaining traction, California Governor Gavin Newsom’s press office responded by posting an AI-generated image of Shirley referencing his reporting on daycare centers.
Shirley responded to the post, writing, “You do realize I’m trying to help America eliminate fraud and waste right? No need to try and make me look like the bad guy for exposing fraud. People are over it. Start working for the people and not against them.”
You do realize I’m trying to help America eliminate fraud and waste right? No need to try and make me look like the bad guy for exposing fraud.
People are over it. Start working for the people and not against them.
— Nick shirley (@nickshirleyy) March 17, 2026
Additional reporting has identified Los Angeles as a significant area for fraud within the hospice industry.
Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services, has stated that 18 percent of all home health care billing in the United States originates from Los Angeles County.
The findings outlined in Shirley’s report and the response it generated have added to ongoing scrutiny surrounding the administration and oversight of government-funded healthcare and childcare programs in California.
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