America is not unique in terms of fraud committed by its citizens seemingly virtually everywhere, given recent revelations in Minnesota and other states. Let’s face it, fraud has been a persistent shadow in human affairs since the dawn of organized society—whether it was ancient merchants short-weighting grain, medieval alchemists peddling fake elixirs, or modern actors exploiting loopholes in massive government programs. It is not the invention of any single ideology, political party, demographic group, or racial category; rather, it cuts across every line society draws.
Perpetrators and victims alike appear in every community, every income bracket, and every background, reminding us that the temptation to gain something for nothing—or to bend rules for personal advantage—resides in human nature itself, not in any particular creed or culture.
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At the same time, the vast majority of Americans intuitively grasp the wrongness of fraud on a deeply personal level. Most individuals would never dream of stealing from a neighbor’s wallet, falsifying a family member’s medical bill, or pocketing money meant to help the vulnerable—because they recognize it as theft, plain and simple.
When fraud occurs on a large scale, especially involving taxpayer dollars intended for healthcare, unemployment relief, or care for the elderly and disabled, public outrage is nearly universal. People across the political spectrum condemn it, demand accountability, and support stronger safeguards, precisely because the principle is so straightforward: taking what isn’t yours, especially from those who can least afford the loss, is wrong.
Let’s look at some of the fraud uncovered around country, less Minnesota which I covered in previous Substack posts.
FRAUD UNCOVERED IN US STATES
Over the past two years, investigations and prosecutions have exposed widespread fraud in government programs across the United States, particularly in healthcare, Medicaid, Medicare, unemployment benefits, and other welfare systems. These cases highlight vulnerabilities in oversight, rapid program expansions during and after the pandemic, and exploitation by individuals, companies, and organized groups. While national takedowns have targeted schemes spanning multiple states, state-specific revelations underscore varying degrees of misuse, from embezzlement and false claims to kickback conspiracies.
The following provides an overview of notable fraud uncovered in various states, drawing from federal and state enforcement actions, audits, and media reports.
Arizona. Authorities sentenced the CEO of a healthcare software company to prison for a $1 billion conspiracy involving fraudulent Medicare claims for unnecessary orthotic braces and pain creams, with over $360 million paid out before detection in 2025. Additionally, owners of a wound graft company were imprisoned for a $1.2 billion scheme submitting false claims for unnecessary skin substitutes, resulting in $614.9 million in improper payments resolved through a $309 million civil settlement in late 2025. The state also featured in a 2025 national healthcare fraud takedown, with charges against defendants for schemes totaling over $1.1 billion in false billings.
California.
This state has been a hotspot for diverse fraud, including a woman’s embezzlement of $132,000 in county grant funds meant for Narcan distribution, uncovered in early 2026. Four residents were sentenced in 2025 for a $16 million hospice fraud and money laundering operation using sham companies. A man pleaded guilty in 2026 to a $54 million radiology and hospice scheme involving unprovided services and laundering up to $3.5 million. Broader probes revealed billions in hospice fraud linked to foreign mafias and welfare scams, particularly in Los Angeles and Van Nuys, with $3.5 billion in losses in one area alone exposed in early 2026. Unemployment fraud remained rampant, with $32 million identified in pandemic-era claims, and the Trump administration’s Small Business Administration suspending over 111,000 borrowers tied to $8.6 billion in suspected small business loan fraud in 2026. Community colleges disbursed over $10 million to fake students in 2024-2025, while a $450 million debacle in upgrading the 911 system highlighted misappropriation under Governor Newsom’s oversight. The state faced a federal Labor Department investigation in 2026 over billions in potential unemployment insurance fraud.
Colorado. This state has grappled with healthcare fraud, including indictments of former executives at a medical company for shipping unnecessary supplies and billing millions in fraudulent claims, revealed in early 2026. A report found 100 percent of audited Medicaid claims for autism care improper or flawed, totaling $289.5 million in improper payments from 2022-2023, though uncovered in 2026. The state was also flagged in broader unemployment fraud probes affecting blue states.
Connecticut. The state sentenced individuals in 2026 for frauds including $300,000 in benefits theft, $670,000 in Medicaid repayment, and $55,000 in clinician billing schemes. Multiple arrests occurred for false behavior analysis claims from 2020-2023, with a nurse practice paying over $600,000 to exit Medicaid. Legislation raised the unemployment fraud felony threshold, recognizing many overpayments as errors.
Florida. In this state, a national healthcare fraud takedown in 2025 charged 37 defendants in the Southern District with schemes exceeding $146 million, including unnecessary durable medical equipment and controlled substances. State watchdogs uncovered nearly $2 billion in excessive spending as part of a 2025 coalition report on waste and fraud.
Illinois. This state saw a Pakistani refugee accused of defrauding $290 million in a COVID testing scheme, with an additional $15 million in hospital embezzlement, leading to his arrest in 2026. The state was part of national fraud enforcement actions. Federal takedowns in 2025 charged defendants with nearly $2 billion in Medicare and Medicaid fraud involving unnecessary equipment and COVID testing, including a $293 million conspiracy by two brothers. A physician faced $1 million in billing fraud while abroad, and a state audit revealed $2 billion in pandemic unemployment fraud from identity theft.
Maine. The state faced overbilling in healthcare firms, with one company fraudulently claiming nearly $400,000 and another $662,608 in Medicaid funds, exposed in 2026. An audit revealed $45.6 million in improper Medicaid payments for autism services, prompting federal scrutiny.
Massachusetts. This state uncovered nearly $12 million in SNAP, MassHealth, and other public benefits fraud in a 2026 auditor’s report. A $1 million SNAP and pandemic unemployment fraud scheme led to arrests, and the state auditor sued over $12 million in alleged legislative fraud in 2026. It contributed to $305 million in improper unemployment claims across blue states.
Michigan. This state has seen multiple healthcare fraud prosecutions in 2025-2026, highlighted by participation in the 2025 National Health Care Fraud Takedown, which included Michigan cases charging individuals for false Medicaid claims totaling around $20,000 (e.g., a Saginaw physician billed for unprovided telephone visits and a support worker for inaccurate services and hours). Pharmacists faced sentences for major schemes: one received over six years for $6 million in undispensed prescriptions billed to Medicare, Medicaid, and insurers, with millions in restitution and forfeiture; another got 46 months for a $4 million similar fraud. A physician was sentenced to four years for a $6.3 million Medicare scheme involving unnecessary orthotic braces. In early 2026, the former CEO of Oxford Recovery Center was charged with nine counts of health care fraud via false claims. Civil settlements included $1.5 million from pharmacies for undispensed drugs and $4.5 million from nursing homes for substandard or nonexistent services. Other cases involved transportation schemes and controlled substance distribution conspiracies. On unemployment, the state resumed collections in 2025 on pandemic-era overpayments estimated at $2.7 billion affecting 350,000 claimants (mostly non-fraudulent errors), with aggressive pursuit of fraud cases involving identity theft and intentional misrepresentation. A House task force investigated Medicaid and SNAP waste, and the state prevented over $300 million in attempted fraud in fiscal 2024 amid rising SNAP card fraud concerns.
Mississippi. In this state, two men pleaded guilty in 2026 to fraudulently collecting pandemic unemployment benefits while incarcerated, part of broader welfare scandals including a rescinded $101 million repayment demand from 2024 misspent funds.
New Jersey. The state uncovered a $92 million Medicaid diversion at two nursing homes in 2025, leading to a $124 million repayment demand and lawsuits for understaffing. A business owner was sentenced for $172 million in Medicare fraud, and marketing companies faced penalties for $127 million in equipment schemes. The Medicaid Fraud Division recovered $132 million in 2025, while pandemic unemployment fraud totaled $473.6 million.
New York. This state was under federal investigation for Medicaid fraud in 2025-2026, with high spending on personal care services totaling $45 billion and a probe into its $124 billion program. A $10.6 billion healthcare fraud scheme charged 15 defendants in 2025. Brooklyn and Queens cases involved $68 million and $120 million in adult day care and pharmacy fraud. In healthcare, New York featured prominently in the 2025 National Health Care Fraud Takedown, with the Eastern District charging 15 individuals (including in “Operation Gold Rush”) for schemes billing over $10.6 billion in fraudulent Medicare claims for durable medical equipment like urinary catheters, using stolen identities from over a million beneficiaries; while most payments were blocked, losses included nearly $900 million from supplemental insurers and $41 million from Medicare, with $27.7 million seized. Federal probes intensified in early 2026, with CMS Administrator Dr. Mehmet Oz launching an investigation into New York’s $124 billion Medicaid program (the nation’s costliest), demanding details on fraud prevention amid concerns over explosive growth, ineligible enrollees (potentially millions), improper out-of-state payments (over $2.6 billion flagged in audits), and mismanagement in programs like CDPAP home care, which lost hundreds of millions to scams over the past decade. SNAP/welfare fraud involved widespread EBT skimming, with millions stolen annually (e.g., $14.5 million reported in early 2025 alone statewide), prompting calls for chip-and-pin cards and lawsuits over inadequate protections.
North Carolina. The state sentenced scammers to over 14 years for a $12.7 million Medicaid fraud using kickbacks and fake facilities in 2026. The state recovered over $1 billion in lapsed salaries from vacancies as part of waste probes.
Texas. The state charged four individuals with $210 million in healthcare fraud schemes in 2025. A durable medical equipment owner was sentenced for $59 million in Medicare fraud in 2026. A Russian national faced charges for $1.8 billion in Medicare fraud.
Oregon. The state faced probes into a sober living facility receiving $2.3 million in Medicaid funds amid gang links in 2025-2026, leading to congressional demands for integrity checks. A care agency pleaded to false claims in 2025, a nursing home settled $2 million for fraudulent billing, and a data breach at CareOregon risked insurance fraud for thousands. Legislation targeted Obamacare enrollment scams.
Washington. The state prompted calls for federal reviews of Medicaid and child care subsidies in 2026 due to lax verification, alongside a 2025 Medicare waste pilot program. A 2024 inspection of the Medicaid Fraud Control Unit and a $19 million settlement with Centene for pharmacy mismanagement highlighted systemic issues, with unemployment fraud contributing to national losses.
Lastly, other states like Maryland ($760 million in unemployment overpayments), Louisiana (unemployment fraud), Ohio (13% fraudulent unemployment), and Pennsylvania (explosive Medicaid billing increases) were implicated in blue-state unemployment fraud totaling over $100 billion nationwide, with recoveries ongoing.
CONCLUDING THOUGHTS
These fraud cases uncovered over the past two years—spanning dozens of states and billions of dollars—illustrate the timeless dynamic of fraud in contemporary form. They show neither a partisan plot nor a reflection of any one group’s character per se, but rather the predictable outcome when large sums of public money meet inadequate oversight.
What unites normal people’s responses to these revelations is a shared moral instinct that most Americans, regardless of background or belief, hold in common: fraud is unacceptable, and those who commit it should face consequences. It is not about race, color, or creed; it is simply crime.
But what is even more detestable are those in government – and especially the Democrat Party – who facilitate the fraud. These people being paid by US taxpayers are stealing directly from us!
The end.