Vance Slams California With $7 Billion Fraud Allegation

Vance Exposes California's $7 Billion Fraud

In an eye-opening interview, Vice President JD Vance took a swipe at California, pointing out an alarming $7 billion fraud issue tied to pandemic-era relief programs. Comparing this to similar scandals in Minnesota, Vance claimed that California's size and population made it a prime target for scammers. "I think we have a fraud problem that is much worse in California than it is in Minnesota," Vance stated during his chat with Newsmax.

Pandemic-Era Programs Under the Microscope

The jaw-dropping $7 billion figure is linked to suspected fraud in the Small Business Administration's (SBA) programs, such as the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL). These were designed as part of the federal COVID-19 relief efforts. According to the Government Accountability Office (GAO), fraud across unemployment insurance programs could range between $100 billion and $135 billion, with some experts estimating even higher figures.

California's Epic Fraud Battle

California, often under the spotlight for its massive relief fund distribution, was a scammer's paradise. International crime rings from Russia, China, and Nigeria took advantage, submitting phony applications to siphon funds intended for struggling businesses. The SBA's inspector general highlighted billions in improper loans nationwide, with California's fraudulent share clocking in around $7 billion.

Backlash and Blame

Vance didn't hold back in criticizing California's Governor, Gavin Newsom. Speculating on the root causes of the fraud, he urged Newsom to "look in the mirror" and reflect on his role in what Vance calls the state's "border chaos." The Vice President also mocked Newsom's stance on law enforcement, labeling his allies as "stooges."

The Giveaway for Scammers

The GAO identified weak identity verification as a key flaw that allowed fraudsters to file large volumes of claims using stolen data. This led to losses mounting to tens of millions per scheme. California's Employment Development Department (EDD) alone paid out an estimated $20-32 billion in fraudulent unemployment claims, often using fake identities and data breaches.

Despite state recovery efforts that have uncovered about $6 billion so far, experts caution that reclaiming all lost funds is a Herculean task due to the sophistication of cross-border schemes. While California has managed to claw back approximately $1.9 billion in fraudulent unemployment claims as of 2023, the DOJ continues its vigilance with ongoing investigations.