Exposing How the US Government Commits Fraud Against its Citizens

YouTube.com ^ | Feb 4, 2026 | Nick Shirley✓

[E. Pluribus Unum]

Summary of Interview Between Nick Shirley and Deputy Secretary Jim O'Neill of HHS

The interview focuses on fraud in federal health and welfare programs, particularly Medicaid and child care, administered by the U.S. Department of Health and Human Services (HHS). Key discussions include:

• Fraud in Minnesota and Other States: HHS froze $185 million in child care funding to Minnesota after requesting proof of legitimacy, which the state has not provided. Similar issues exist in Medicaid, where Minnesota submitted an inadequate corrective action plan. Five states (California, New York, Illinois, Minnesota, Colorado) sued HHS over requirements for evidence before disbursing funds. HHS is appealing and using other authorities to prevent fraud.

• Lack of Oversight and Evidence: States historically relied on trust without sufficient verification, such as site visits or attendance records. Examples include daycares receiving millions without children present, blacked-out windows, and hostility toward investigators. One building housed over 300 Medicaid providers on paper but showed no activity. HHS repealed Biden-era regulations that limited states' ability to demand records more than once a year, which allegedly facilitated fraud.

• Types of Fraud: Involves fake providers, inflated services in high-risk categories (e.g., non-emergency medical transportation, adult daycares, autism services, home health aides). Fraud often targets unlicensed areas. Examples: family members paid for minor tasks like financial help; buildings with multiple providers that lack capacity. In Minnesota, 89% of charged fraud cases involve Somali individuals, with 81% of Somalis on welfare. Fraud extends to NGOs receiving hundreds of millions without public disclosure of recipients.

• Immigrant-Related Issues: States like Minnesota and California provided Medicaid to illegal immigrants using mixed or improper federal funds, leading to penalties (e.g., over $1 billion to California). Refugee status previously allowed benefits, but recent legislation removed it for certain categories starting October. This is seen as an incentive for illegal immigration.

• Scale and Impact: Billions in federal funds involved annually; e.g., $515 million quarterly in Minnesota's high-risk Medicaid categories. Estimates suggest 3-7% of tax dollars lost to fraud. Past model was "pay and chase," making recovery difficult; now focusing on prevention.

• HHS Actions: Conducting investigations, prosecutions, site visits; hiring data scientists and AI experts for better detection. Imposing penalties (hundreds of millions quarterly on Minnesota Medicaid). Emphasizing transparency, real-time data, and lists of suspicious providers. Committed to funding legitimate recipients only.

• Potential Consequences: Prosecutions expected, though time-consuming (years). Politicians may face imprisonment if crimes proven; e.g., former Governor Walz dropped re-election bid amid scrutiny. Fraud not partisan, but more resistance from some Democrat-led states.

• Historical Context: Biden administration policies limited eligibility verification and data sharing, enabling fraud. Previous ease of enrollment allowed absurd cases, like a dog registered as a Medicare provider. Current efforts aim to undo these and improve integrity.

The interview highlights HHS's shift toward stricter enforcement to ensure funds reach intended vulnerable populations, like working families needing health care and child care support.

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[SharpRightTurn]

“Five states (California, New York, Illinois, Minnesota, Colorado) sued HHS over requirements for evidence before disbursing funds.”

How dare you ask for proof we’re not scamming the taxpayers!

[Presbyterian Reporter]

I watched the entire video.

Nick Shirley did a great job of interviewing the HHS and other officials.

One of my main takeaways was the discussion on how the Biden administration had lessened the rules on states being required to oversee the businesses getting various welfare payments.

This is what happens when Big Government gets too BIG and nobody is watching to make sure government handouts are legitimate.

Until David Hoch and Nick Shirley exposed the fraudsters, neither the Republicans nor the Democrats seemed to be interested.

And now we have a National Debt closing in on $39 trillion.

[spintreebob]

“Five states (California, New York, Illinois, Minnesota, Colorado)”

Curious that, other than MN, the states use DELOITTE IES which is both one of the biggest fraudsters in the swamp and the software/data that allows most other fraudsters. In GA DELOITTE has a long history of protecting its profitable fraud design of its Integrated Eligibility System and its fraudulent ENTERPRISE MASTER PERSON INDEX EMPI.

[TermLimits4All]

This is just what’s on the surface. This all boils down to our government. They’ve been stealing from us our entire lives. The SS slush fund, property taxes, income taxes and a host of other theft avenues that benefit government. It all comes back to government, they send it out to favorable donors, including other countries, who recycle it back to their coffers.
Prove me wrong.

[Dick Bachert]

HELL, it's been going on for OVER a century!!