Posted on 12/31/2025 7:40:36 AM PST by DFG
A Newsmax segment featuring California Assemblyman Kevin Kiley and Newsmax’s Joe Moeller focused on new findings of fraud and mismanagement across multiple California state programs, including community colleges, unemployment insurance, and social services, as outlined in the California State Auditor’s 2025 high-risk report.
During the segment, Kiley highlighted what he described as a major discovery involving fraudulent applications submitted to California’s community college system.
“Now the latest example that we’ve learned is that over a third of community college applications in the state were fraudulent. These were not real people, not real students, actually seeking a spot at one of our community colleges. What they were instead, were scams,” Kiley said.
Moeller said the issue has been developing for months and has already resulted in significant financial losses.
“Has been reported on over the past several months. Kylie noted that people were found to be individuals committing financial aid fraud, costing more millions of dollars of taxpayer money, according to the California Community chancellor’s office,” he said.
The reporter also discussed the broader findings of the California State Auditor’s 2025 high-risk report, which was released earlier this year.
“I talked to Kylie just yesterday about the recent California State Auditor’s 2025 high risk report. It warns multiple state agencies still face serious problems with waste, fraud and mismanagement, including the Employment Development Department and medical,” Moeller said.
“The report also adds social services to the High Risk List, warning Cal Fresh errors could cost California billions of dollars. The auditor says hundreds of millions and potentially billions of taxpayer dollars are at risk.”
Kiley said the number of agencies flagged by the state auditor has doubled since Governor Gavin Newsom took office, despite significant increases in state spending.
“It is now eight different agencies. It was four when Newsom became governor. We have a budget that has increased by $124 billion but everything’s gotten worse,” Kiley said.
He pointed to statewide outcomes that he said reflect mismanagement alongside specific examples of large-scale fraud.
“In California, we’re number one in homelessness, number one in unemployment, number one in poverty. And then you have these specific examples of fraud on an unimaginable, staggering scale, with high speed rail, with $32 billion in unemployment insurance,” Kiley said.
Moeller said he contacted the governor’s office following the release of the auditor’s report to seek comment on the findings and Kiley’s criticism. “Now, this report just came out weeks ago, I reached out to the governor’s office regarding the auditor’s High Risk List,” the reporter said.
According to the reporter, the governor’s office disputed claims of fraud tied directly to the report. “A rep tells me it does not allege fraud or lost billions of dollars, calling it a tool for oversight, and accuses Kylie of misrepresenting the report,” he said.
The reporter added that state officials defended their handling of past and current programs.
"Officials say covid era unemployment fraud has been addressed with billions of dollars recovered. That rep also added that there is no fraud going on when it comes to high speed rail, despite no line being laid and the homeless money as that is being accounted for,” he said.
The segment concluded with the reporter summarizing Kiley’s broader concern about oversight beyond California.
“Kylie says what’s going on Minnesota just highlights the need for more oversight in other states besides Minnesota, send it back to you. Joe Mueller, reporting, live there from California,” said Moeller.
gotta fix CA’s manipulated electoral process above all else.
How do fraudulent community college applications benefit the fraudsters? I mean, how does the scam make money? Or are the community colleges committing the fraud themselves to increase their enrollment numbers and funding?
The fraudsters use fake id’s to get federal financial aid.
In other words, don’t upset the boat, we are all getting rich.
financial aid fraud
They apply for and receive financial aid but never attend.
This
Once enrolled you have an ID that allows you to apply for financial aid in many many places. Easy money.
I would have thought the $$ would be paid directly to the schools, or at least paid in a two-party check so it couldn’t be used for fun money.
Not that hard to avoid fraud...
Trump Amplifies Newsmax Report on California Fraud (Dec 25, 2025)
https://www.newsmax.com/newsfront/donald-trump-gavin-newsom-mismanagement/2025/12/25/id/1239698/
Original source.
I remember having to pay a down payment before receiving financial aid.
I started at a community college to get the core courses out of the way cheap before I transferred to a State university. My financial aid was called a job.
After I got out of the Army I had the VEAP plan. I got a monthly stipend from the VA, CA Tuition Grant and a small pell grant to attend a Jr. college. A lot of my friends are still paying off student loans. So the Four years I served have really paid off.
federal, state, and additional financial aid,including a lot of $$$ that either doesn’t have to...or won’t be...repaid
also free groceries (tho these are dished out all over town to anybody .... the colleges add additional free boxes or groceries for their students)
free (partial but useful) health care services
free access to swimming pools, gyms, etc.
often free transit passes, sometimes free uber type taxi rides, free cafeteria hot meals vouchers, free personal and grooming supplies, free textbooks which they can turn around and sell off campus since they don’t plan to read them anyway, often free newspaper and other subscriptions (wall street jounnal and new york slimes, etc.). discounted amazon and other services.
free free free.
a veritable cornucopia of free-dom
just for taking ten minutes to file a california community college application on the website
a veritable free cornucopia
If I understand correctly, the government gives most of the money directly to the colleges for tuition, but then it sends any remainder to the student for books and supplies. Maybe that’s where the fraudsters take the money.
This could be wrong but I’ve been told if you drop the class before the “drop with no penalty date” you get some or all the money back. The student is issued the check it doesn’t go back to USG.
If that’s the way the program works, no wonder there’s so much fraud.
Its always hard to give money back to the federal government.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.