In Today’s Newsletter
Nick Shirley Triggers Oversight Committee Investigation
Public Opinion on California’s Fraud Scandal
The Cost of Exposing Fraud

Nick Shirley Triggers Oversight Committee Investigation

JD Vance takes on Gavin Newsom’s fraud ridden California
Last week, Nick Shirley released a 40-minute investigation exposing over $170 million in fraud across California’s taxpayer-funded daycare centers, hospice companies, and home health care facilities. The video, viewed millions of times, showed dubious facilities, multiple hospice providers in one office, and workers fleeing in luxury vehicles. Within days, Governor Newsom’s press office responded by posting an AI-generated image implying Shirley was a predator for filming at daycares.
Then, on Monday following the video’s release, the House Committee on Oversight and Government Reform made it official. Chairman James Comer and committee Republicans launched a formal investigation into California’s hospice programs, sending a letter directly to Newsom demanding all documents and communications related to the state’s oversight and internal controls. The committee’s message was blunt: the Newsom administration has been aware of credible reports of hospice fraud for at least four years and has failed to prevent or detect it.
Los Angeles County had seen a 1,500 percent increase in hospice providers since 2010, with providers over-billing Medicare by at least $105 million in a single year. Last year, Attorney General Rob Bonta called hospice fraud in LA County “an epidemic.” The Centers for Medicare & Medicaid Services recently estimated that LA County alone accounts for $3.5 billion in hospice fraud, and that 18 percent of all hospice billing nationwide comes from that one county.
Despite years of government reports and audit findings, action lagged. After Nick put cameras on it last week, Congress began asking why California hadn’t acted sooner.
The committee has set a deadline for Newsom to produce the requested documents. This investigation follows the committee’s earlier work on Minnesota’s social service programs, which exposed the same pattern: state agencies failing to conduct oversight while federal dollars poured in.
We’ll be tracking what comes back. Know someone who should be reading this? Forward this email or share Anti Fraud Club with them. The more people paying attention to fraud, the harder it is for our government to ignore.

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Public Opinion on California’s Fraud Scandal

Joe Rogan and Mark Normand talk about Nick Shirley (Joe Rogan Experience #2471)
Nick’s California investigation got a reaction from some of the biggest names in media, politics, and public life, and almost none of it went the way Gavin Newsom was hoping.
On Friday, Joe Rogan weighed in on his podcast with comedian Mark Normand. Rogan didn’t hold back, addressing Newsom directly: “He’s doing your job. He’s uncovering fraud, and what you’re doing is mocking him?” He went on to say that the governor’s office should be opening investigations immediately if they actually cared, but instead, all they want to do is “obfuscate, cover it up, make it look silly.” Normand put it more simply: “You should go, ‘Oh shit, there’s fraud? I’m the governor.”
Then CBS News showed up and did exactly what Nick did. The network dispatched a crew to a Los Angeles building listed as home to 89 hospice companies, 72 of which were flagged for fraud. They found vacant offices, ignored mail, and dead phone lines. On X, people joked that CBS had gone “full Nick Shirley,” and the irony was obvious. When Nick visited similar buildings with a camera, the governor’s office labeled him a creep. When CBS did it, suddenly it was investigative journalism. Actor Rob Schneider shared CBS’s report and asked if Newsom’s office would send them a snarky meme, too.
Even federal officials have issued public responses. First Assistant U.S. Attorney Bill Essayli clarified his office's actions by replying to Nick’s video on X, linking to ongoing fraud cases charged in the Central District of California. Dr. Mehmet Oz, as CMS administrator, visited Van Nuys to announce the discovery of a $3.5 billion hospice fraud ring in LA, where 42 providers were registered within a four-block radius, as we mentioned in last weeks article.
What’s happening here goes beyond one video or a governor’s mishandled social media. The public is watching a 23-year-old with a camera accomplish what state regulators, auditors, and elected officials ignored for years. When the governor mocked him rather than confronting the fraud, people noticed.

The Cost of Exposing Fraud

Nick Shirley joins Fox News to discuss the California fraud fallout (Fox News)
Most people who watch Nick Shirley see a guy in a hoodie, knocking on doors and asking uncomfortable questions. What they don’t see is what it takes to get him to the door in the first place. On Saturday, Nick sat down with Kayleigh McEnany on Fox News. He was candid about a reality that isn’t often shared. It’s almost impossible to show up in a city to film without hiring a private security team.
The threats follow a pattern almost every time he arrives somewhere new. Nick films. Someone recognizes him, takes a photo, and his location quickly spreads on Reddit and other social media sites. This exposure has direct consequences: In California, people sent menacing messages, saying, “If you see Nick Shirley, it’s on site.”
Nick has been open with his audience about his perspective. He wrote on X: “It sucks because the large majority supports what I’m doing. But a small percentage, typically those involved in the fraud schemes, want to kill me or ‘run me out’ of their cities. Fraudsters and their supporters are very dangerous.”
He’s also been clear about the consequences of political rhetoric. After Newsom’s press office posted the AI-generated image depicting Nick as a predator, he wrote that “a small percentage of their base will see this and think I’m ‘evil.’ They may eventually want to kill me because of propaganda created from the governor of California’s office.” This kind of messaging from someone in power influences public perception of Nick when he is seen filming in their city, leading to the escalation of confrontations he described to McEnany and demonstrating a direct cause-and-effect relationship.
Nick has been fundraising through the Blackline Guardian Fund to cover his ongoing security costs, and he told McEnany that his faith has kept him steady through it all, helping him stay on a good path to continue doing what he believes needs to be done. As the investigations grow, the political response intensifies, and the personal cost of doing this work keeps rising. Nick is determined to persevere, no matter how great the challenge.

The Audit Log
LAX’s People Mover is in its final stages after costing $3.34 billion and being three years behind schedule.
Federal agents arrested 11 people in a $17.4 million mortgage fraud ring targeting elderly homeowners in Los Angeles.
Undercover footage from LA’s Skid Row captured petitioners bribing homeless people in exchange for signing voter registration forms.


