Nick Shirley Exposes Alleged $170 Million California Fraud Network

Breaking

A new investigation by Nick Shirley is intensifying scrutiny on California’s taxpayer-funded daycare and hospice systems after he alleged more than $170 million in fraud tied to suspicious providers and questionable facilities. FOX 11 Los Angeles reported that Shirley’s video identified what he described as “ghost” centers, including locations registered to empty lots, closed storefronts, residential properties, and other sites that did not appear to match legitimate care operations.

The allegations arrived amid an already heated debate over fraud in California’s public systems. FOX 11 said Shirley’s findings echoed recent claims from Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz, who pointed to a separate alleged hospice fraud ring in Los Angeles. Together, those claims have added pressure on state officials to explain how spending has ballooned while oversight concerns continue to mount.

Details & Background

According to FOX 11, Shirley said his team used public and government records to support the investigation. The report said he relied on data from the Centers for Medicare & Medicaid Services, the National Provider Identifier database, CCAP and CalWORKS records, California Department of Social Services inspection logs, and Medi-Cal budget reports to compare official filings with what his team found on the ground.

Shirley’s reporting focused in part on San Diego, where he and Amy Reichert visited daycare locations listed in state records. FOX 11 reported that at one site, records showed 39 children enrolled, but only about five appeared present when they visited. At another daycare, the outlet said state records showed 14 children enrolled even though inspectors previously found zero present, along with missing records and roster issues. In another stop, Shirley encountered children outside who said no adult was there at the time.

The investigation also moved to Van Nuys, where Shirley alleged widespread hospice and home health fraud. FOX 11 reported that he visited Garden of Angels Hospice and described a plaza where numerous hospice entities appeared to be clustered together. Shirley also pointed to Miracle Healing Hospice, which he said had billed large amounts, but appeared empty when he looked through the window after no one answered the door.

FOX 11 further reported that Shirley tied the alleged fraud to rapid spending growth. In the video, he said California’s Medi-Cal budget has risen sharply in recent years and argued that public spending has grown far faster than population trends would suggest. His larger claim was that weak controls may have allowed bad actors to profit from programs intended to help families and patients.

Reactions

Shirley’s comments in the FOX 11 report were blunt. He said, “California may have the largest amount of fraud in the country.” He also alleged that some people connected to the schemes “live in luxury with no consequences.” Those remarks helped turn the story into a broader argument over whether California has become a national center for organized fraud inside publicly funded systems.

The report also included a confrontation with a man FOX 11 identified as John Boyajian. When Shirley pressed him about hospice operations, Boyajian replied, “If you want to learn, I’ll teach you how to get after the crooked people.” Later in the exchange, when asked about another allegedly empty provider, he said, “Call the FBI.” The exchange underscored how contentious the issue has become as outside investigators begin publicly challenging providers over taxpayer-funded billing.

At the same time, the story has carried political implications. FOX 11 noted that Dr. Oz’s earlier fraud claims prompted criticism from California Gov. Gavin Newsom, who blasted those efforts as political theater and racially charged profiling. That dispute is now overlapping with Shirley’s findings, turning the fraud issue into both an enforcement fight and a political one.

Why This Matters to You

This matters because fraud in daycare and hospice systems is not just about wasted money. If providers are billing taxpayers while failing to deliver real care, families lose confidence in programs meant to protect children, patients, and vulnerable people. That kind of breakdown also harms legitimate providers who follow the rules and serve the public honestly.

It also matters because oversight failures never stay isolated. When questionable providers can remain active while collecting public funds, it suggests deeper weaknesses in licensing, inspections, and enforcement. Government should be identifying suspicious billing patterns quickly, removing noncompliant operators, and pursuing criminal cases where the evidence supports it. For readers concerned about waste, accountability, and the integrity of public programs, this story is a warning that weak controls can carry a very high cost.