Governor Newsom EXPOSED—Fraud STILL Thriving UNCHECKED

Man speaking with flags in the background

A shocking CBS News investigation uncovered 89 registered hospice agencies operating from a single dilapidated Los Angeles building—where journalists found only empty offices, abandoned mail, and disconnected phone lines—exposing what experts now call “ground zero” for Medicare fraud that’s bleeding American taxpayers dry.

Story Snapshot

CBS journalists discovered 89 hospice companies registered to one Van Nuys building with no operational facilities, patients, or staff present
Los Angeles County hosts approximately 1,800 hospices, with 742 displaying state-defined fraud indicators yet still actively operating
Assemblywoman Alexandra Macedo found another Van Nuys address housing 197 registered hospices, exposing systemic regulatory failures
Governor Newsom’s administration missed a January 1, 2026 deadline for emergency regulations despite a 2022 state audit warning of weak licensing controls
Fraudulent operators use stolen Medicare numbers purchased on the dark web to bill for services never provided to vulnerable terminal patients

CBS Exposes Van Nuys Fraud Hub With Door-to-Door Verification

CBS News reporters conducted physical inspections of a Van Nuys building officially registered as housing 89 separate hospice agencies. What they documented should alarm every American concerned about government waste and fraud. The building showed no signs of legitimate medical operations—just piled-up mail, locked doors, and phone lines that rang into the void. This isn’t incompetence; it’s organized criminal fraud exploiting lax California regulations while billing Medicare for services never rendered to dying patients who deserve dignity in their final days.

California’s Regulatory Failure Spans Years Despite Repeated Warnings

The current crisis didn’t emerge overnight. A 2020 Los Angeles Times investigation first exposed massive hospice fraud schemes throughout California. Between January 2015 and August 2021, the state received approximately 2,100 complaints including 350 specific fraud allegations. Yet California’s Department of Public Health continued granting licenses despite glaring red flags. A 2022 state audit directly criticized the administration for inadequate investigations and failure to address organized fraud networks specifically targeting Medicare and Medi-Cal programs in LA County. This pattern of negligence represents a fundamental failure to protect both vulnerable patients and hardworking taxpayers.

Newsom Administration Delays Critical Protections While Fraud Flourishes

Governor Gavin Newsom’s administration has revoked over 280 hospice licenses and touted Department of Justice arrests, but critics rightfully question why protective regulations remain absent. Emergency regulations mandated by the 2022 audit were due January 1, 2026—that deadline passed without implementation. Meanwhile, 742 hospices flagged with fraud indicators continue operating freely. Assemblywoman Alexandra Macedo sent a formal letter to Newsom demanding action after her own investigation uncovered 197 hospices registered to another single Van Nuys address. Attorney General Rob Bonta acknowledged the problem, stating authorities “need to react to red flags, not just count them,” but enforcement after damage occurs doesn’t help families already victimized.

LA County has become the undisputed epicenter of hospice fraud, with approximately 1,800 registered agencies—roughly 500 clustered within just three miles. Buildings marketed as “Medical Plazas” appear dilapidated, lacking basic accessibility features, visible patients, or medical staff. Fraudsters exploit this density to establish shell companies using Medicare numbers obtained through dark web transactions, billing federal programs for fabricated care. The scale represents not just healthcare fraud but organized crime operations that legitimate hospice providers—especially in rural areas—now struggle against as public trust erodes and terminal patients face barriers accessing genuine end-of-life care.

"We visited an LA building with 89 registered hospices. Here's what we found." – CBS News #SmartNews https://t.co/zAIrhCYdq1

— Joe Honest Truth (@JoeHonestTruth) March 19, 2026

This scandal exemplifies everything wrong with California’s progressive governance model: massive bureaucracy that enables fraud while stifling legitimate enterprise, delayed accountability despite clear evidence, and vulnerable populations suffering while administrators prioritize political optics over decisive action. American taxpayers fund Medicare through decades of payroll contributions, expecting those dollars to provide compassionate care when families face life’s most difficult moments. Instead, criminal networks exploit regulatory incompetence to steal billions while terminal patients receive nothing. The Trump administration’s emphasis on reducing government waste and holding states accountable for federal program integrity couldn’t be more relevant. Until California implements meaningful licensing controls and prosecutes fraud aggressively, Los Angeles will remain ground zero for this assault on Medicare—and on the dignity every American deserves at life’s end.