THEGOLDEN GEESE
Exposing California's $55B–$180B distributed fraud extraction system
“The Golden Geese”
— Elon Muskcoined the name for California's multi-billion dollar distributed fraud extraction system
Why “Golden Geese”? In the fable, a goose lays golden eggs — but the greedy owner kills it trying to get all the gold at once. California's fraud programs are the geese: each one (EDD, SBA, Medi-Cal, childcare, homelessness) quietly produces billions for fraudsters until oversight finally catches up and the “goose” is killed. Multiple geese, all being drained at once — a distributed extraction system.
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EDD Fraud Alone
Julie Su admitted $55B lost
Larger than Minnesota
Fraud Cases Opened
EDD alone since 2020
The California fraud flag is incomparably larger — not one scheme, but an entire distributed extraction system
Fraud Heat Map
Four regional task forces established to combat fraud across all 58 California counties. Click a region to explore.
Source: Cal OES Statewide Task Force · DOJ · SBA OIG · CA State Auditor
Click a region on the map to view detailed fraud data
9 regions tracked across 4 task forces
Statewide Verified Totals
State Auditor · Senate Finance
SBA Feb 2026 — 111,620 borrowers
DMFEA FY2021–2023
State Auditor 2023-102.1
Quick Select Region
Regional data from Cal OES Statewide Task Force, DOJ press releases, SBA OIG reports, and CA State Auditor. Task force statistics as reported by lead agencies.
The Golden Geese
Elon Musk gave California's fraud crisis a name: “The Golden Geese.” Not a single fraud — but multiple “geese” producing money, until they're drained. Each one represents a government program being simultaneously exploited.
EDD Unemployment Fraud
EDD admits $55B+ lost in pandemic fraud. Julie Su ordered identity verification removed in April 2020. $810M paid to prison inmates. Organized crime rings from Nigeria and Eastern Europe purchased bulk stolen identities. 500+ arrested, 203 convicted. Fraud continues: $500M+ in fraudulent payments in 2024 alone.
CA State Auditor 2020-628.2 · Senate Finance May 2024 · CA Globe
SBA PPP/EIDL Fraud
SBA suspended 111,620 California borrowers across 118,489 loans (Feb 2026). FBI arrested suspects in $93M COVID tax credit fraud — the largest ever. Emanuel Tucker: $15.9M scheme. Abraham Park: 120+ fake apps, $12M. Joint Strike Force indicted 250+ defendants including gang members and overseas rings.
SBA Feb 2026 · FBI · DOJ COVID-19 Fraud Task Force 2024 Report
Homelessness Spending
$24B spent across 9 agencies and 30+ programs with zero centralized tracking. Only 2 of 5 major programs found 'likely cost-effective.' Homelessness grew 53% despite spending. SF spent $106,500 per homeless person in FY23. Newsom's ex-chief of staff Dana Williamson indicted on 23 federal fraud charges (Nov 2025).
CA State Auditor 2023-102.1 · CalMatters �� DOJ (Williamson)
Medi-Cal Fraud
HHS estimates 25% fraud rate in Medi-Cal since 2019 ($130B+ annual budget). Conservative 15% rate = $146B in losses. CA MFCU recovered $513M in FY2024. $178M scheme by Randall, Mekail & Anderson. $60M SoCal home health fraud indictment. COVID enrollment verification suspended — millions potentially ineligible.
CA AG DMFEA · HHS OIG FY2024 · City Journal 2025
Childcare Subsidy Fraud
HHS froze $10B in federal childcare/TANF/CalWORKs funds across 5 states (Jan 6, 2026) citing 'widespread fraud and misuse.' CA receives $3.7B/yr. San Diego fraud ring charged federally. COVID relaxed attendance requirements — providers billed without children present. AG Bonta sued to unblock funds.
HHS Jan 2026 · DOJ USAO-SDCA · LAist · KQED
CalFresh / CalWORKs
CalWORKs lost $108M+ in cash benefits to welfare fraud (Trump admin cited). CalFresh serves 5M Californians — tens of millions stolen via EBT card skimming in 2022–2023. P-EBT distributed billions with duplicate claims and identity theft. CA passed SB 516 for chip-enabled cards. $1B in annual SNAP trafficking nationally.
HHS · USDA OIG · EdSource · CA Counties Association
Multiple geese. One distributed extraction system. Exposed across official State Auditor reports, DOJ prosecutions, SBA investigations, and CalMatters journalism.
Program-by-Program Breakdown
Each program represents a separate “goose” — an independent extraction vector. All data sourced from official government reports.
Mar 2020
Pandemic begins — EDD overwhelmed
Apr 2020
Julie Su orders ID verification removed
Sep 2020
$810M paid to prison inmates
Jan 2021
State Auditor: $10.4B confirmed fraud
Oct 2022
NPR: $20B+ fraud estimate
Apr 2024
Auditor: $24B homelessness untracked
May 2024
Senate: Julie Su lost $32.6B
Nov 2025
Newsom ex-chief of staff indicted
Jan 2026
HHS freezes $10B in childcare
Feb 2026
SBA: 111,620 borrowers suspended
Mar 2025
City Journal: $180B Empire of Fraud
CA EDD (Unemployment)
criticalIdentity Fraud / Fictitious Claims
- EDD admits $55B lost in pandemic — Secretary Julie Su directed EDD to suspend all eligibility requirements in March–April 2020, removing ID verification safeguards
- $810M paid to ~45,000 claimants matching incarcerated individuals in state/federal prisons, including 133 death row inmates; claims also filed using names of Sen. Dianne Feinstein and Gov. Newsom
- $10.4B confirmed as likely fraudulent by State Auditor Report 2020-628.2 (92% were PUA claims); Senate Finance Committee cited $31–32.6B in losses under Julie Su's oversight
- Nigerian and Eastern European crime syndicates purchased bulk 'fullz' identity packages ($2–$20 each) on dark web; a single SF-based ring filed $20M+ using 3,000+ stolen identities
- Kaymeisha Keyes (Tracy): 70+ fraudulent claims — sentenced to 9 years, $1.1M restitution. David Constantin: $5M scheme mastermind — 5 years, $5.2M restitution
- 4 Southern California siblings (Taylor family) convicted at trial for $1.1M unemployment scheme. $5M fraud mastermind extradited from Romania (Feb 2024)
- Former EDD employee Phyllis Hope Stitt and boyfriend Kenneth Riley sentenced to 20 months each for $768K and $611K in fraudulent claims filed using internal system access
- 2023–2024: $1.5B in estimated improper payments continued even after pandemic, with $500M+ in fraudulent payments in 2024 alone
- Julie Su was never fired — instead 'failed up' to Acting U.S. Secretary of Labor under Biden. Senate Finance demanded transparency after DOL forgave $32.6B in California's UI debt
Sources: CA State Auditor 2020-628.2 · CA Globe · Senate Finance May 2024 · DOJ USAO-EDCA/CDCA · NPR Oct 2022 · CalMatters Nov 2023
SBA PPP / EIDL Loans
criticalShell Companies / Fake Payrolls
- SBA suspended 111,620 CA borrowers across 118,489 loans (Feb 6, 2026) — 16x more borrowers than Minnesota's 6,900 suspensions
- Casie Hynes (LA): 80+ fraudulent PPP/EIDL applications for ~20 fake companies — $2.3M obtained, $1.3M in fake tax credits — sentenced to 5 years, $2.4M restitution
- Emanuel Tucker (Canyon Lake): pleaded guilty to $15.9M scheme — bought $1.4M home, Lamborghini, and diamond jewelry. Faces maximum 20 years
- Abraham Park (La Mirada): 120+ fraudulent EIDL applications, $12M in total losses — sentenced to 46 months, $7M restitution
- $7.7M scheme: last of 8 defendants sentenced (SBA, Feb 2026). Separate ring: 4 defendants sentenced in $11.5M COVID-19 fraud scheme (SBA, Feb 2026)
- 11 individuals indicted for stealing $2M+ in COVID relief funds (Dec 2025). Two Inland Empire women arrested for $3.5M EIDL scheme
- FBI/IRS arrested suspects in $93M COVID tax credit fraud — the largest ever identified — with 148 fake companies seeking $248M in fraudulent refunds (2024)
- Hassan Kanyike (Santa Clarita): $1.8M through fake PPP/EIDL apps — 4+ years prison. Funds diverted to luxury goods, real estate, and cryptocurrency across hundreds of cases
- Joint Eastern/Central District of California Strike Force has indicted 250+ defendants including gang members, serial fraudsters, and overseas rings
Sources: SBA Admin. Kelly Loeffler Feb 2026 · DOJ USAO-CDCA · SBA OIG · FBI LA Field Office · COVID-19 Fraud Task Force 2024 Report
Homelessness Programs
highUnaccounted Spending / No Tracking
- State Auditor Report 2023-102.1: California allocated nearly $24B for homelessness across 9+ state agencies administering 30+ overlapping programs — no centralized outcome tracking
- Cal ICH (Interagency Council on Homelessness) 'has not tracked and reported on funding since its 2021 assessment' and 'has no plans to perform a similar assessment in the future'
- Of 5 major programs analyzed ($13.7B combined), only 2 were found 'likely cost-effective' — hotel conversions and family prevention. The other 3 lacked enough data to evaluate
- San Jose extended an $8M contract to a provider based on 'vastly inflated performance data.' San Diego 'failed to thoroughly account for spending or measure success'
- More than 180,000 Californians experienced homelessness in 2023 — a 53% increase from 2013 — despite $24B spent. SF alone spent $668M in FY23 ($106,500 per homeless person)
- Project Homekey: $3.3B allocated. HHAP (Homeless Housing, Assistance, and Prevention): billions distributed to cities and counties with inconsistent reporting requirements
- Newsom's former chief of staff Dana Williamson indicted Nov 2025 on 23 federal charges including bank/wire fraud, conspiracy, false tax returns — allegedly siphoned campaign funds and claimed $1.7M in fake business expenses including a $15K Chanel bag and $170K birthday trip
Sources: CA State Auditor 2023-102.1 · CalMatters Apr 2024 · CBS SF · PBS News · Hoover Institution · KQED · DOJ (Williamson indictment Nov 2025)
Medi-Cal
highBilling Fraud / Phantom Patients
- CA MFCU recovered $513M in FY2024 — a significant portion of the $1.4B recovered by all state MFCUs nationally. MFCUs returned $3.46 for every $1 spent
- FY2024 national totals: 1,151 convictions (817 fraud, 334 patient abuse), $961M criminal recoveries, $407M civil recoveries, 493 civil settlements
- Central District of California: $297M in settlement recoveries (Jul 2024–Jul 2025). CA AG recoveries: $134.25M
- $60M indictment against SoCal healthcare provider operating 3 fraudulent home health agencies (2016–2022). Randall, Mekail & Anderson allegedly defrauded Medi-Cal of $178M through loosened pandemic restrictions
- HHS sources estimate 25% fraud rate in Medi-Cal since 2019. Conservative 15% rate = $146B in losses. Medi-Cal covers ~15M Californians with $130B+ annual budget
- City Journal 'Empire of Fraud' report: systematic fraud siphoned $180B+ during Newsom's tenure across all programs, with Medi-Cal's 'ghost providers' as a key vector
- During COVID, California temporarily suspended enrollment verification — by 2023, potentially millions of ineligible individuals were enrolled, triggering a massive 'unwinding' redetermination
Sources: CA AG DMFEA · HHS OIG FY2024 · City Journal Mar 2025 · Daily Wire · Epstein Becker Green · Central District DOJ
Childcare / CalFresh / CalWORKs
highMulti-Program Exploitation / Federal Freeze
- Jan 6, 2026: HHS froze federal grants to CA across 3 programs — Child Care Development Fund ($2.4B), TANF/CalWORKs ($7B), and Social Services Block Grant. CA receives ~$3.7B/yr combined
- HHS cited 'serious concerns about widespread fraud and misuse of taxpayer dollars' and 'reason to believe' benefits were fraudulently going to noncitizens. 5 states affected: CA, CO, IL, MN, NY
- CalWORKs: Trump admin cited $108M+ in cash benefits lost to welfare fraud — primarily through EBT card skimming, where criminals install devices on ATMs to drain recipients' accounts
- CA AG Rob Bonta filed lawsuit with 4 other state AGs to block the 'unlawful freeze of $10 billion.' HHS OIG Inspector General stated 'there aren't public OIG-released materials on fraud in these programs in California'
- San Diego: 4 residents charged in multi-million dollar federal childcare benefits fraud ring (USAO-SDCA). During COVID, attendance requirements were relaxed — providers could bill without children physically present
- CalFresh (CA SNAP): serves ~5M Californians. Tens of millions stolen through EBT skimming in 2022–2023. CA passed SB 516 requiring chip-enabled EBT cards. USDA estimates ~$1B in annual SNAP trafficking nationally
- Pandemic EBT (P-EBT) distributed billions in additional food benefits — fraud investigations found duplicate claims, identity theft, and benefits sent to ineligible recipients across California counties
Sources: HHS Press Release Jan 2026 · DOJ USAO-SDCA · LAist · KQED · EdSource · CA AG Press Release · CA Counties Assn
The accountability gap: Julie Su ordered EDD to suspend identity verification in April 2020. EDD Director Sharon Hilliard knew the scale of the problem from day one — emailing “This is bigger than anything we have ever experienced” the day before California shut down. Neither was held accountable. Su was promoted to Acting U.S. Secretary of Labor. Newsom's former chief of staff Dana Williamson was indicted on 23 federal charges in November 2025 for fraud, conspiracy, and false tax returns — including claiming $1.7M in fake business expenses. City Journal documented the full scope: $180 billionin systematic fraud during Newsom's tenure — what they called “Gavin Newsom's Empire of Fraud.”
Even early independent reporting flagged this gap. Investigative journalists like Nick Shirley documented California fraud patterns well before it became mainstream news — preceding official audits by months.
Now there's finally a name for the whole thing: The Golden Geese.
California vs Minnesota
Minnesota's “Feeding Our Future” was one operation. California is a distributed extraction system. 100x larger.
Larger in Scale
Minnesota “Feeding Our Future”: One USDA meal program exploited. 79 indicted, 56 guilty pleas, 7 convicted at trial including ringleader Aimee Bock. Localized to Minneapolis. Only ~$75M of $250M recovered — rest spent on luxury goods or sent overseas. Federal estimate: total fraud could top $350M.
California “The Golden Geese”: 5+ programs exploited simultaneously. $55B+ lost through EDD alone. 111,620 SBA borrowers suspended. 3,500+ defendants charged nationally. Nigerian, Eastern European, and domestic crime syndicates operating across all 58 counties. City Journal documented $180B+ in total systematic fraud during Newsom's tenure.