{"id":3333,"date":"2026-03-31T23:54:39","date_gmt":"2026-03-31T23:54:39","guid":{"rendered":"https:\/\/8657085.xyz\/?p=3333"},"modified":"2026-03-31T23:54:39","modified_gmt":"2026-03-31T23:54:39","slug":"california-controller-candidate-claims-hes-uncovered-425m-in-potential-fraud-waste","status":"publish","type":"post","link":"https:\/\/8657085.xyz\/?p=3333","title":{"rendered":"California controller candidate claims he&#8217;s uncovered $425M in potential fraud, waste"},"content":{"rendered":"<p> <div style=\"display: grid; grid-template-columns: 300px 160px; gap: 2px; width: 460px; background: #eee; padding: 2px;\">\r\n\r\n  <!-- \u6574\u884c\u5bbd\u5e7f\u544a -->\r\n  <div style=\"grid-column: 1\/-1; width: 460px; height: 250px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876674\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n  <\/div>\r\n  <div style=\"grid-column: 1\/-1; width: 460px; height: 90px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876676\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n  <\/div>\r\n\r\n  <!-- \u5de6\u4fa7\u7ad6\u6392 -->\r\n  <div style=\"height: 250px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876672\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n  <\/div>\r\n  <div style=\"height: 500px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876680\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n  <\/div>\r\n\r\n  <!-- \u53f3\u4fa7\u6469\u5929\u697c\uff08\u548c\u5de6\u4fa7\u5b8c\u5168\u5bf9\u9f50\uff09 -->\r\n  <div style=\"grid-row: 3\/5; height: 750px; background: #ccc; display: grid; place-items: center;\">\r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e2\" data-zoneid=\"5876678\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n  <\/div>\r\n  \r\n  <script async type=\"application\/javascript\" src=\"https:\/\/a.magsrv.com\/ad-provider.js\"><\/script> \r\n <ins class=\"eas6a97888e6\" data-zoneid=\"5876682\"><\/ins> \r\n <script>(AdProvider = window.AdProvider || []).push({\"serve\": {}});<\/script>\r\n<\/div><br \/>\n<\/p>\n<div>\n<p>Herb Morgan has gone down the financial rabbit hole in his quest to be California\u2019s next state controller.<\/p>\n<p>The longtime financial executive and Republican candidate seeking to oversee public dollars issued a new report slamming Gov. Gavin Newsom and other California officials this week, claiming the state faces up to $425 billion in exposure for fraud, waste and abuse.<\/p>\n<p>Morgan notes in a white paper that California has between $312 billion and $425 billion in \u201cfiscal exposure\u201d over five years across major programs including health care, unemployment insurance, homelessness spending and infrastructure.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Herb Morgan, a candidate for California controller, drafted a report on potential areas for fraud and waste. <span class=\"credit\">MediaNews Group via Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cWhat the report shows without question is that while we\u2019re the richest state in the richest country in the history of the human race \u2014 and we have massive resources to deliver services of compassion \u2014 yet we lack any kind of controls to track the proper usage of funds,\u201d Morgan told The Post.<\/p>\n<p>\u201cWhat I\u2019ve learned in this process is we have the highest error rates and the highest fraud rates of any state in the country, and no one else is close.\u201d<\/p>\n<aside class=\"single__inline-module aligncenter wp-block-nypost-editor-primary-tag\">\n<\/aside>\n<p>He added: \u201cWe all blame Gavin because he\u2019s top of the ticket, but the state controller [Malia Cohen], she doesn\u2019t even know what she\u2019s supposed to do.\u201d\u00a0<\/p>\n<p>Officials for the governor\u2019s and controller\u2019s offices did not immediately respond to a request for comment.<\/p>\n<p>The report suggests $95 billion to $115 billion in exposure tied to Medi-Cal, $55 billion in unemployment insurance payments, $30 billion to $50 billion in capital projects and megaprojects, and $20 billion to $25 billion each in CalFresh food aid, homelessness and housing programs.<\/p>\n<div class=\"single__inline-module inline-module inline-module--newsletter aligncenter inline-module--nypostbusinessunit aligncenter wp-block-nypost-editor-newsletter\" data-source-unit=\"Inline Newsletter Module Cali - Morning Report\">\n<div class=\"inline-module__inner\">\n<div class=\"inline-module__title-wrapper\">\n<div class=\"inline-module__unsubmitted-title-wrapper\">\n<h3 class=\"inline-module__title headline headline--combo-sm-md\">\n\t\t\t\t\t\t\tSign up for the California Morning Report newsletter\t\t\t\t\t\t<\/h3>\n<p class=\"inline-module__cta\">\n\t\t\t\t\t\t\tCalifornia&#8217;s top news, sports and entertainment delivered to your inbox every day.\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<p><h3 class=\"inline-module__title headline headline--combo-sm-md\">\n\t\t\t\t\t\tThanks for signing up!\t\t\t\t\t<\/h3>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<p>The most concrete figure cited \u2014 $55 billion in unemployment insurance \u2014 comes from a California State Auditor report examining pandemic-era payments by the Employment Development Department.\u00a0<\/p>\n<p>An analysis found the agency estimated $26 billion in ineligible payments and later added another $29 billion, though auditors said the methodology behind the additional estimate was not fully supported.<\/p>\n<p>Newsom\u2019s office has sparred with Republicans as well as social media influencers like Nick Shirley over issues of fraud in California.<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Gov. Gavin Newsom has defended California\u2019s record for rooting out fraud. <span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>Much of Morgan\u2019s other findings appear to rely on extrapolation.<\/p>\n<p>On Medi-Cal, the report applies a roughly 10% improper-payment rate to hundreds of billions in projected spending, then adds tens of billions more for coverage of undocumented immigrants.\u00a0<\/p>\n<p>However, federal officials have emphasized that improper-payment rates do not measure fraud and often reflect missing documentation or administrative errors rather than ineligible recipients.<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n<h2 class=\"wp-block-heading\"><strong>Download The California Post App, follow us on social, and subscribe to our newsletters <\/strong><\/h2>\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>California Post News<\/strong>: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedIn<br \/><strong>California Post Sports<\/strong> Facebook, Instagram, TikTok, YouTube, X<br \/><strong>California Post  <\/strong>Opinion <br \/><strong>California Post Newsletters<\/strong>: Sign up here!<br \/><strong>California Post App<\/strong>: Download here!<br \/><strong>Home delivery<\/strong>: Sign up here!<br \/><strong>Page Six Hollywood<\/strong>: Sign up here!<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n<\/div>\n<p>The report similarly estimates $20 billion to $25 billion in exposure in CalFresh based largely on error rates. Federal officials have said those error rates measure accuracy of eligibility and benefit calculations, not fraud, and include both overpayments and underpayments.<\/p>\n<p>Morgan\u2019s homelessness estimate also leans on a widely cited state audit that found California failed to consistently track outcomes and spending across roughly $24 billion in programs. The audit highlighted accountability gaps but did not conclude that most of that funding was lost to fraud or waste.<\/p>\n<p>The findings unveiled this week are part of the CAL DOGE initiative launched by Steve Hilton, a Republican candidate for governor and former Fox News host.\u00a0<\/p>\n<figure class=\"nyp-slideshow-modal-image wp-block-image aligncenter size-large\"><figcaption>Steve Hilton, a candidate for governor, created the CAL DOGE intiative to identify fraud, waste and abuse.  <span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>Hilton held a press conference Tuesday in Orange County in which he noted that the timing of the announcement coincided with the state\u2019s deadline for a report on the state\u2019s audited spending.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-wrapper twitter\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">NEW: Our 4th CAL DOGE Fraud Report. We analyzed Gavin Newsom&#8217;s own public data to calculate the total amount of fraud, waste and abuse in the past 5 years.<\/p>\n<p>$425 billion. That&#8217;s $22,000 for each taxpayer.<\/p>\n<p>Yet Democrat candidates for governor say we need MORE spending. No!<\/p>\n<p>As\u2026 <a rel=\"nofollow\" href=\"https:\/\/t.co\/l4YfSA79qU\">pic.twitter.com\/l4YfSA79qU<\/a><\/p>\n<p>\u2014 Steve Hilton (@SteveHiltonx) <a rel=\"nofollow\" href=\"https:\/\/twitter.com\/SteveHiltonx\/status\/2039043010516734082?ref_src=twsrc%5Etfw\">March 31, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/figure>\n<p>\u201cGavin Newsom has missed that deadline for the last six years, which shows you how seriously they take their responsibility to be prudent with public money,\u201d Hilton said.<\/p>\n<p>\u201cThey don\u2019t care about your money, they just steal it and waste it.\u201d<\/p>\n<p>The report from Morgan \u2014 a recently retired investment executive with nearly four decades of experience in financial markets \u2014 comes as Republicans call more attention to issues around hospice fraud in California. <\/p>\n<p>Last week, the House Oversight Committee announced it was launching its own probe. <\/p>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><script async defer src=\"https:\/\/platform.instagram.com\/en_US\/embeds.js\"><\/script><br \/>\n<br \/><!-- \u603b\u5bb9\u5668\uff1a\u6700\u5927\u5bbd908px Grid\u7d27\u51d1\u5e03\u5c40 -->\r\n<div style=\"display: grid; 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