The 'Stop Nick Shirley Act' Passes California Assembly

Nick Shirley will be in the capital for The Strength of America: 250 Years of Freedom fundraiser dinner, where you can meet him in person, hear him speak, and spend the evening alongside UFC fighters and other notable guests. Purchase your ticket before they sell out.

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Nick will be speaking and hosting a meet-and-greet throughout the evening. Former UFC Interim Welterweight Champion Colby Covington and U.S. Pardon Attorney in the Trump Administration, Ed Martin will also be there, along with a lineup of special panelists.

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Six weeks ago, we reported on California’s Assembly Bill 2624 and legislative efforts to limit Nick Shirley’s ability to investigate fraud. On Tuesday, the California Assembly passed the bill by a vote of 57-19, with all supporting votes from Democrats. The bill now moves to the state Senate.

AB 2624 would prohibit posting personal information or images of anyone designated as an "immigration support services" provider, employee, or volunteer online. Nick Shirley stated that if this bill passes, it would criminalize efforts to expose individuals committing fraud rather than targeting the fraud itself.

The bill would also extend protections to government-funded entities, such as the Somali "Learing" Daycare centers investigated by Nick in Minnesota, whose operators have since faced federal indictments. If similar organizations operated in California, exposing them would be restricted. For example, documenting activity at fraudulent hospices and posting it online could result in violations. Civil fines would start at $4,000 per violation, and criminal penalties could reach $10,000 and up to one year in jail.

Republican Assemblyman Carl DeMaio, who referred to the bill as the 'Stop Nick Shirley Act,' urged a no vote. He described it as a clear First Amendment violation and argued that it would hinder watchdog journalists from exposing fraud relevant to taxpayers. Assemblyman David Tangipa described the bill as a "Trojan horse." He noted that the definition of a designated immigration support provider has been expanded beyond employees and volunteers to include nonprofit organizations without limitation, as well as any facility deemed protected by the Attorney General. Tangipa argued that, rather than targeting fraud and corruption, the bill restricts the ability to post evidence of such activities online.

The bill was authored by Assemblywoman Mia Bonta, who is married to California Attorney General Rob Bonta, the official responsible for prosecuting fraud in the state. Nick Shirley raised concerns about a potential conflict of interest, stating that the Attorney General's wife is drafting legislation that could shield fraud her husband is tasked with investigating. Assemblywoman Bonta responded by calling the criticism "MAGA misinformation."

Previously, Governor Newsom's press office responded to Nick Shirley's 40-minute California fraud investigation with a doctored image, rather than addressing the $170 million in questionable hospice claims he documented. The state later took credit for Operation Skip Trace, which uncovered a $267 million hospice fraud ring in Los Angeles. This pattern suggests that while California officials claim credit for uncovering fraud, they are also advancing legislation that could make it more difficult for external parties to expose such activities.

AB 2624 is now under consideration in the California Senate. If you reside in California, you may wish to contact your state senator to share your perspective on this bill. Senator contact information is available at findyourrep.legislature.ca.gov.

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The White House released a comprehensive fact sheet this week detailing all major enforcement actions by the Task Force to Eliminate Fraud since March. For those following Nick Shirley's investigations, the document outlines a clear sequence of events and showcases the Trump Administrations key actions and victories.

The Task Force suspended 447 hospices and 23 home health agencies in Los Angeles, addressing over $600 million in estimated fraud. It deferred $1.3 billion in Medicaid reimbursements for California and froze $260 million for Minnesota. The DOJ's National Fraud Enforcement Division addressed more than $340 million in fraud during its first week. Nationwide, audits began for every state's Medicaid Fraud Control Unit. The Department of Justice currently manages 8,000 active fraud cases.

In Minnesota, enforcement actions followed Nick's initial investigation. After his reporting on daycare and autism center fraud in the Twin Cities, the Task Force halted Medicaid payments, raided more than 20 centers, charged the daycare owner featured in Nick's video, and indicted 15 individuals in a $90 million Medicaid fraud scheme, including the largest autism fraud case prosecuted to date.

In California, a similar pattern emerged between Nick's investigations and enforcement actions. His hospice investigation led to the creation of a West Coast Strike Force targeting healthcare fraud in California, Arizona, and Nevada. The administration suspended $1.4 billion in home health and hospice funding nationwide and froze all new Medicare enrollments for hospice providers until the situation is resolved. Following the investigation, one California individual pleaded guilty to submitting $270 million in false claims.

The SBA referred 562,000 fraudulent pandemic-era loans totaling $22 billion for collection. The administration also blocked $60 million in fraudulent student loan applications during one month of enhanced screening.

Five months ago, Nick Shirley began documenting empty daycare centers. Today, the federal government is conducting a nationwide effort to address fraud in every state. While the White House fact sheet does not attribute this shift to any individual, the timeline highlights the impact of these investigations.

Let us know your thoughts on how Nick Shirley and the federal government can continue working together to end fraud, waste, and abuse by replying to this email.