California Faces $250 Billion Fraud Crisis Under Democratic Leadership, GOP Candidate Claims

Violent anti-ICE protests in downtown Los Angeles and widespread government fraud in California are the direct result of years of far-left control in the state, according to GOP gubernatorial candidate Steve Hilton.

“This is exactly what we expected,” Hilton said. “Because this is what you get — places that are sanctuary cities, sanctuary states run by the far left, as California has been for 16 straight years.”

Hilton pointed to activist groups responsible for turning demonstrations into violent confrontations, identifying a group at the heart of the protest.

“They are not happy with just making their point and just making the argument in the normal political way,” Hilton said. “They have to insist on it being followed, and they have to cause disruption.”

He claimed California’s political leadership routinely yields to such groups.

“The leadership, so-called, in California always caves to the mob,” Hilton said. “That’s what’s going to end. People are sick of all this.”

The discussion shifted to allegations of fraud after a clip featuring Dr. Mehmet Oz highlighted suspicious concentrations of hospice facilities and billions of dollars in fraudulent activity tied to organized crime.

In the clip, Oz described 42 hospices in a four-block area in Los Angeles, stating that either many people are dying there or there is significant fraudulent activity.

“In this four-block area in Los Angeles, there are 42 hospices,” Oz said. “So either there are a lot of people dying here, or you’ve got fraudulent activity that is so good that everyone wants to get in on it.”

Oz also alleged “$3.5 billion of fraud” in hospice and home care services in Los Angeles, claiming much of it is run by the “Russian Armenian mafia.”

Hilton criticized Governor Gavin Newsom for responding with a civil rights claim against Oz instead of addressing the allegations.

“It’s just absolutely unbelievable that we have a governor who is so obsessed with his own presidential ambitions instead of actually dealing with the problems that have accumulated, many of them caused by him over his years in charge of California,” Hilton said.

Hilton stated his campaign has been collecting fraud tips since December through a whistleblower line, claiming the scope of the problem is far larger than previously known.

“Our estimate of the fraud in California total, we published it the other week: $250 billion,” he said. “Some of the fraud tips that have been coming in just make you so angry.”

He cited examples involving healthcare benefits.

“For example, Mexican citizens in Mexico are taking advantage of Gavin Newsom’s free healthcare for illegal immigrants to claim medical benefits even though they’re not in California,” Hilton said. “We now have fake illegal immigrants taking taxpayer money for healthcare.”

When asked where fraud is most prevalent, Hilton pointed to healthcare spending and homelessness programs.

“It’s definitely the health care system, which is the largest part of the budget,” Hilton said. “And then it’s the homeless industrial complex.”

Hilton also criticized the state’s response to rebuilding after California wildfires, saying permitting delays have stalled recovery efforts more than a year later.

“The first one that was rebuilt isn’t even a real home anyone’s going to live in,” he said. “It’s a show home for a developer.”

He said the lack of progress reflects the consequences of Democrat domination.

“It’s a perfect illustration of what you get after 16 years of one-party rule,” Hilton said. “Gavin Newsom promised a Marshall Plan to rebuild LA. Nothing has happened.”

Hilton added that voters are ready for change.

“We’ve had enough of it in California,” he said. “That’s why people are going to vote for change this year.”