Posted on 07/10/2026 5:31:38 AM PDT by Red Badger
“Michael, we’re bigger than U.S. Steel.” — Hyman Roth, “The Godfather Part II“
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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.
Every day, it seems, there are reports of fraud, most of it involving federal entitlement programs. Everyone knows about the massive fraud uncovered in Minnesota, Ohio, and California. But the stories just keep trickling in.
* Just last month, the Justice Department charged 455 defendants for what amounts to $6.5 billion in alleged false medical claims.
* Around the same time, Herbert Leon Kimble was arrested in the Philippines on charges that he ran a $1.2 billion Medicare fraud conspiracy.
* Investigators in Alaska charged 15 people with close to $2 million in Medicaid fraud.
* A Brooklyn, N.Y., retailer has been charged with stealing more than $640,000 in food-stamp benefits from people in Ohio.
The truth is, we have no idea how much fraud there is. The GAO estimate is more of a guesstimate than a reliable figure, and the top number on its range is probably too low, given the lackadaisical efforts states put into fighting fraud. In New Mexico, for example, a state with the highest share of people on food stamps, a legislative report found that the state followed up only 3% of the tips it received about fraud.
But even if the GAO is right, the amount of fraud rivals the output of several major U.S. industries, as a new paper from the Advancing American Freedom Foundation shows in an eye-opening chart.
Given that more than $4 trillion of the federal government’s $7.4 trillion budget is in the form of transfer payments, the scale of fraud shouldn’t be surprising.
What is surprising is how determined Democrats are to keep the fraud going.
When evidence of widespread fraud emerged in California and Minnesota, for example, the governors of both states attacked the Trump administration for pointing it out, while pretending that they are dealing with the issue.
When Trump moved to deny Medicaid funds to states rife with fraud, “Democrats slammed the crusade as a smokescreen for … Trump’s war against blue states, and an attempt to divert attention from GOP cuts to healthcare programs.”
When Agriculture Secretary Brooke Rollins asked states to turn over food stamp enrollment data and offered to partner with them to root out fraud, 21 Democrat-controlled states refused to do so on spurious privacy grounds.
When Republicans in New Mexico pointed out that the Democrat-controlled state “rarely verifies, seldom audits, and barely investigates fraud” in its food stamp program, Democrats responded that fighting fraud threatened to “restrict eligibility.”
And, as we noted back in December, Democrats attacked DOGE — which was a modest attempt to find waste, fraud, and abuse in federal agencies — with such ferocity that it sparked violent protests.
The problem is that, even without opposition from Democrats, the government’s anti-fraud efforts are like bailing out a sinking ship with a spoon. There’s too much money available to fraudsters. There are way too many holes in the programs that make them easy to rip off. And catching the thieves takes time and effort.
Rachel Greszler, who authored the Advancing American Freedom report, says that Congress has the opportunity this year to seal the gaps by including several provisions in a new reconciliation bill.
"A comprehensive package built around full benefit reporting, eligibility verification, accurate measurement, mandatory cooperation, and skin-in-the-game accountability would help protect taxpayers, preserve benefits for those truly in need, and reduce the hundreds of billions of dollars currently lost to waste, fraud, and abuse each year."
The only people who could be opposed to these commonsense reforms are the criminals and their patrons in the Democratic Party.
— Written by the I&I Editorial Board
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How do you tell the criminals and their patrons apart? And which ones work for MSnow or the DNC?
I thought That Vance was supposed to be cleaning this up. What’s he doing? Maybe somebody else could be more effective.
I’m sorry, but we are going to have to start hanging thieves.
There are just too many of them.
People don’t pay attention because they don’t physically see the thieves walking off with their money.
But it’s our money they’re stealing.
That money could be used for other purposes…..replacing bridges…..improving ports…..cleaning up.
Heaven forbid, they reduce taxes.
Trump needs to go full Pinochet.
If the fraud were stopped they could virtually get rid of personal income tax.
That’s nice. But it sounds like from this particular article, fraud has become rampant.
Under the Democrats Clinton, Obama, and Biden it did. If we eliminate just the fraud and waste we wouldn’t have to borrow money to pay for it.............................
Failing to comply with Federal audit requirements is grounds for cutting off all Federal aid to all programs.
Not that I think they should exist at all.
L
> I thought That Vance was supposed to be cleaning this up. What’s he doing? <
You can’t manage what you can’t measure. This is the first step, identifying the problem. This massive ship doesn’t turn on a dime.
Give credit where it is due. The fraudsters are getting exposed and many are already facing jail terms and deportation.
EC
“I’m sorry, but we are going to have to start hanging thieves.”
Logic would dictate that Congress/Senate would be these criminals in the first place as it is they who take our money and redistribute it to the states...with no oversight. Most of them belong in Alcatraz for grand theft.
This has morphed from the old saying “It’s only Government money” to the same saying on steroids.
Patriots, Call Congress
US Capitol switchboard
(202) 224-3121.
Call the White House
Comments: 202-456-1111
Switchboard: 202-456-1414
TTY/TTD Comments: 202-456-6213
Send a letter to the White House
1600 Pennsylvania Ave NW
Washington, DC 20500
MESSAGE Trump’s admirable move to deny Medicaid funds to states rife with fraud was met by Democrats slamming the move “as a smokescreen......for Trump’s war against blue states; his attempt to ‘divert attention’ from GOP cuts to healthcare programs.”
Agriculture Secy Brooke Rollins asked states to turn over food stamp enrollment data and offered to partner with them to root out fraud, but 21 Democrat-controlled states refused to do so...spouting spurious “privacy” grounds.
New Mexico Republicans pointed out that the Democrat-controlled state “rarely verifies, seldom audits, and barely investigates fraud” in food stamp programs, Democrats responded that fighting fraud threatened to “restrict eligibility.”
This blatant obstruction of justice must end now.
Fraud has been rampant for decades.
Elderly spouse just discharged from hospital after pulmonary embolus to home. He couldn’t stand alone or take any steps yet. Hospital nurses called for ambulance to take him home as wife could not lift him in or out of car. Three weeks later I received bill for $959.60 from ambulance service. Medicare denied the claim. The fraud makes me sick. 🤢
Graham Platner is getting 100% disability from the military and he’s in good enough shape to work, run for office and force himself on women. Can he be reexamined for eligibility purposes? They could cut it by half and he could still function. Would the communists go to bat for him like they did as a candidate?
Does that number include fraud within the States? Think California. I’m betting the total is well over a Trillion.
“When evidence of widespread fraud emerged in California and Minnesota, for example, the governors of both states attacked the Trump administration for pointing it out, while pretending that they are dealing with the issue.”
And in other news...
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