Pillaging U.S.A.

Editor's note: The deeper systemic problem in California is this: the system is structurally incapable of policing itself at scale. Bureaucratic paralysis isn't accidental; it's the predictable outcome of overlapping jurisdictions, shared liability, political insulation, and incentive misalignment. When fraud spans federal money, in this case billions of dollars, California state administration, private contractors, and regulatory agencies, "everyone has exposure and no one has responsibility." In simple terms: the rats are inside the granary eating all the grain. The rats are writing the inventory reports. When fraud is enabled by the very systems meant to prevent it, enforcement stops being an external check and becomes self-policing theater. No alarm gets pulled because doing so would expose who left the doors open, who ignored the noise, and who benefited from pretending nothing was wrong. At that point, the problem isn't crime slipping through the cracks, it's a structure that quietly tolerates predation as long as it doesn't threaten the institution itself. Incompetence, theft and pillaging become institutionalized even when the scale of loss is indefensible.

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Gavin Newsom Admits Massive Fraud Has Been Going On in California for Years [WATCH]

By Lifezette News Staff | January 31, 2026

California Gov. Gavin Newsom responded to accusations raised by Dr. Mehmet Oz regarding fraud in the state’s hospice programs, saying his administration has been addressing the issue for years and arguing that the criticism is politically motivated.

Newsom made the remarks while discussing allegations tied to hospice providers in California and comments made by Oz, who has accused the state of allowing widespread fraud.

In his response, Newsom said enforcement actions and reforms were already underway well before Oz became involved in the issue.

"Dr Oz might have, well, you're living in Oz when he went down, attacking the Armenian community just a few days ago, a business that's down now 30% poor guy, small businessman, running a bakery because he decided to do a little Tiktok video or something, saying they’re somehow connected to the mob around hospice," Newsom said.

The governor said his administration has focused on hospice oversight for several years, including taking regulatory action in 2021.

"Hospice, we’ve been after that for years and years before Oz was even on the scene," Newsom said.

"2021, we did a moratorium on new hospice program. 280, we shuttered. We've been after this for years and years and years."

Newsom said the state's approach has been aimed at cooperation while pursuing accountability.

“We want an open hand, not a closed fist," he said. “We absolutely are here to be a partner, to go after waste, fraud and abuse."

As part of broader efforts to address fraud and inefficiencies, Newsom pointed to the creation of a state office focused on technology and innovation.

Please go to LifeZette News to continue reading about the pillaging going on in California.

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