Fraud is running rampant in government.
Blatant corruption is finally being exposed.
And RFK J. uncovered one terrible fraud scheme that has Gavin Newsom running scared.
Every Room Was A Ghost Business Stealing Your Medicare Money
HHS Secretary Robert F. Kennedy, Jr. dropped the bombshell on comedian Theo Von's podcast.
A California hotel converted every single room into a fake nursing company headquarters.
Not one patient ever got care.
Just PO boxes collecting your Medicare and Medicaid checks month after month.
"They're all just PO boxes," Kennedy told Von.
"They're not actually doing any nursing care. They're just collecting money."
Elderly Americans who need nursing care can't get appointments.
Medicare is going broke.
And an entire hotel full of empty rooms was billing the government like they were running legitimate nursing operations.
Biden's HHS let it happen for years.
California Turned Federal Healthcare Into A Criminal Enterprise
This hotel scam is the blueprint for how California operates.
Los Angeles County drains 18% of the nation's entire home health and hospice Medicare billing.
One physician connected to hundreds of home health agencies billed $600 million to Medicare between 2021 and 2024.
One doctor in California billing more than entire states combined.
Dr. Mehmet Oz found 42 hospice companies operating from a four-block area in Los Angeles.
He calculated $3.5 billion in fraud just in that neighborhood.
Either everyone in those four blocks is dying at record rates, or California turned federal healthcare into organized crime.
Federal prosecutors documented international money-laundering rings running out of the same parts of LA that Biden's Health Secretary Xavier Becerra used to represent in Congress.
PACS Group exploited COVID waivers to fraudulently bill Medicare for skilled nursing services residents didn't need.
They paid $7 million to settle.
Shlomo Rechnitz built an empire of 78 nursing facilities while under state investigation.
His facilities racked up 12.4 citations on average compared to 6.1 statewide.
Patients died from neglect while he and his wife disclosed a net worth of $786 million.
Your Medicare dollars paid for that.
Newsom Knows Trump Is Coming For Him Next
Kelly Loeffler's Small Business Administration uncovered $8.6 billion in dodgy COVID-era loans in California.
Newsom immediately started posting about fraud in Republican states.
"How did this level of fraud happen in JD Vance's Ohio?" His team wrote about $14 million in Ohio fraud on social media.
Ohio lost $14 million while California lost $8.6 billion.
Newsom's trying to distract you from California's fraud empire by pointing at Ohio.
Between 2020 and 2024, California became the national epicenter of COVID relief fraud.
Los Angeles fraud rings submitted over 150 applications seeking $22 million in COVID relief.
They bought luxury homes, gold coins, diamonds, jewelry, and cryptocurrency with your tax dollars.
Biden's agencies deliberately weakened controls to rush money out the door.
Fraudsters called it the easiest money they'd ever steal.
Newsom stood by and watched it happen.
Federal Prosecutors Have A Decade To Hunt Down Every California Fraudster
Loeffler put California on notice.
She said Trump's SBA is delivering accountability in a state whose policies created "a culture of fraud and abuse at the expense of law-abiding taxpayers."
Kennedy already cut funding to five Democrat-run states that refused to present workable fraud prevention plans.
"We gave them a warning," Kennedy said in January.
"But if you won't show us a plan, a workable plan, we're gonna cut it off until you do."
California has a choice – clean up the fraud or lose federal funding.
Newsom's deflection to Ohio proves which option he's choosing.
Federal investigators are working through tens of thousands of flagged pandemic loans.
Congress extended the statute of limitations to 10 years for PPP and EIDL fraud.
Prosecutors have until 2030 or 2031 to charge fraudsters who stole money in 2020 and 2021.
This decade-long manhunt is already sending people to federal prison for years.
Philip Esformes got 20 years for a $1.3 billion healthcare fraud scheme.
The hotel Kennedy exposed shows everything Americans hate about how Washington works.
Empty rooms billing Medicare while real patients can't get care.
Criminals getting rich while your tax dollars disappear.
Biden and Newsom created the culture that made it all possible.
Trump and Kennedy are holding them accountable.
Sources:
- Ross O'Keefe, "RFK Jr. exposes California hotel as fake nursing office, fraud claims ramp up: 'Just collecting money,'" New York Post, February 13, 2026.
- Department of Justice, "Justice Department Announces Results of Nationwide Covid-19 Fraud Enforcement Action," Press Release, August 23, 2023.
- Rep. Claudia Tenney, "Letter To The Editor: Medicare Fraud In California Shouldn't Cost Seniors Their Care," Home Health Care News, November 13, 2025.
- Small Business Administration Office of Inspector General, "COVID-19 Pandemic EIDL and PPP Loan Fraud Landscape," Report 23-09, 2023.
- CalMatters, "He built a nursing home empire despite state investigations. Now, lawsuits are piling up," November 20, 2025.