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De Omnibus Dubitandum - Lux Veritas

Thursday, August 13, 2026

Fraud and Government Waste is Rampant and Ubiquitous

By Rich Kozlovich

Fraud permeates everything the left touches, and many of those who profess to be on the right are either silent, complacent or complicit.  Then there are those who are happy about it.  In Godfather II gangster Hyman Roth told Michael Corleone, “Michael, we’re bigger than U.S. Steel.” 

The mobsters in “The Godfather” set their sights way too low. If they really wanted to make it big time, they should have targeted federal entitlement programs instead of gamblers and drug addicts. Not only does it pay better, but you can count on one political party to look the other way.  The Government Accountability Office (GAO) figures that fraudsters make off with more than $500 billion of federal taxpayer money a year, plus another $184 billion in “improper payments.” That isn’t just bigger than U.S. Steel. That’s five times as big as the entire steel industry.

  1. Treasury Warns of Fraudsters Creating ‘Ghost Students’ to Steal Federal Student Aid.
  2.  Beyond Fraud: Citizen Journalists Unmask Crazy Government Waste
  3. GAO: Federal fraud could exceed $500B annually
  4. GAO Says Fraud Risk High In $1.1T Of State-Run Federal Programs 

Health care costs have skyrocketed in the nation, the cost of health insurance for one can be as high as 10,000 a year.  Make no mistake, a big portion of this was caused by Obamacare, and more by massive levels of fraud.  In one case the Trump administration tracked nearly $300 billion fraud tab of that falls under the domain of the Department of Health and Human Services.  An agency that like all the rest is most likely filled with Deep Staters.  

  1. Daycare centers without children taking in over 100 Million from Medicaid
  2. The fraud and waste of California's $220 billion dollar Medi-Cal program, which are leaving taxpayers with massive runaway costs, and it got so bad the federal government suspended one billion dollars in Medicaid funds to California and to Minnesota.  More here
  3. A man in New York stole 19 million in a Medicaid Fraud scheme.  
  4. A man in Atlanta stole over five million from a children's hospital.
  5. In this case over 2000 native Americans ended up either dead or missing in a scheme for criminals to steal could billions from Medicaid.  
  6. Radicals in Wisconsin hiding behind a "nonprofit' scan is in reality protest group that since 2020 has been funded by the "federal government....including from the Department of Justice and state officials."  to the tune of  "$5 million in government funds.  

"For Today’s Democrats, Fraud Is A Feature, Not A Bug"

Its been discovered the left has been faking donations to their fund their political schemes.  ActBlue claims about donors has proven to be troublesome.  From people who said they they've never... ever.. made political donations to a man living in poor conditions having made "7,878 donations worth $93,168".  

“Many of the donors have a high frequency of donations, but low donation amounts,” Corrigan wrote. “These types of financial transactions are often used in money laundering and identity theft crime rings to not arise suspicions with high dollar amount transactions. The victims are chosen carefully because their information is publicly available, and Act Blue already has it.”

 In this case the criminals would be political operatives.  

  1.   Concerns over Ilhan Omar's links to massive fraud explode on new evidence
  2.   Why Are So Many Muslim Migrants Involved in Massive Fraud Schemes?
  3.   Mamdani’s Wife Fundraised for Gaza Then Never Donated the Money 
With fraud at almost five and a quarter of a billion.... that's billion.... you would might imagine someone would think something needs to be done.  Yet key GAO recommendations are being ignored.  Why?  Because, at least in my opinion, these agencies are filled with Deep Staters and lazy losers, and a Congress that goes on vacation while we're spiraling down a maelstrom of 400 trillion dollars in debt. 
 
There are over 200 programs paid for by the federal government that are run by the states costing 1.2 trillion dollars a year, "and despite their openness to fraud, the government does little to combat it."

Is there a fix?  Yes, and at the very least it's a good start. 

  1. There was legislation that required agencies to report on their anti-fraud measures the Congress allowed to lapse in 2020, under .... guess who.... Joe Biden's administration. Congress needs to reimplement that legislation to "drive accountability".
  2. Eliminate two thirds of the federal government. 
  3. Here’s another option that nobody mentions yet would do much, much more to permanently combat fraud. Stop sending taxpayer money to the states altogether:  

"States have little incentive to combat fraud in these programs. Why should they? It’s not their money they’re trying to protect. If anything, this kind of fraud is good for state politicians. As we saw in Minnesota, it brings lots of money in, and every year they can push for more federal funds by claiming the need is greater than ever."

Will any of this happen? No. Democrats love it and the Republicans are invertebrates.  Remember, no matter how much they wail in sackcloth and ashes, they went on vacation while the nation spirals down a maelstrom of debt.  


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