The California fraud problem is way worse than we thought
By Easton Martin | March 19, 2026
Independent investigator Nick Shirley has released a new exposé on X, exposing a California fraud crisis that is significantly larger than the multi-billion-dollar scandal he recently brought to light in Minnesota.
Shirley, who has gained national prominence for his investigation into Somali scam daycare centers in Minnesota, has now turned his lens toward Los Angeles and San Diego. His findings reveal a systemic misappropriation of taxpayer funds involving both state-funded childcare and hospice care providers.
In his latest report, Shirley documents his visits to several registered daycare locations that appeared to be empty storefronts or residential homes with no children present. Despite the apparent lack of services being provided, these facilities have reportedly been billing the state for millions of dollars. Shirley’s work has been a breath of fresh air regarding transparency of government funds. His independent, boots-on-the-ground reporting is uncovering corruption that has long escaped the notice of state auditors.
The impact of Shirley’s work has already reached the halls of Congress. Representative Kevin Kiley and members of the House Judiciary Committee have referenced Shirley’s findings as evidence of a lack of oversight in California’s social programs. During recent testimony, Shirley described the state’s spending as a “major red flag,” pointing to $24 billion spent on homelessness and billions more on high-speed rail projects with minimal visible outcomes.
By bringing these discrepancies to the public’s attention, Shirley is performing a vital service for taxpayers. His efforts are a necessary catalyst for government reform and increased accountability. His investigative videos have generated significant public pressure, forcing a public conversation about how California manages its massive budget.
As Shirley continues to investigate the hospice sector, the hope is that his findings will lead to comprehensive audits and the recovery of stolen public funds, ultimately ensuring that resources reach those who truly need them.
