Nick Shirley Uncovered One of Newsom’s Ghost Offices and Now He’s Explaining Exactly How They Robbed You Blind

Nick Shirley broke open Minnesota's $2 billion daycare fraud – and now he's doing it again.

This time he went to California.

And what he found inside Gavin Newsom's state makes Minnesota look like a rounding error.

Four Steps to Steal Millions From Seniors

Shirley mapped out the entire operation – and it is almost insultingly simple.

First, you set up a small office in Los Angeles.

Then you get your hands on Medicare beneficiary numbers, often by paying seniors or tricking them into surrendering their information.

You use those numbers to sign people up for hospice services they never requested and may never see.

Then you submit the billing and collect millions from the federal government.

The moment anyone starts asking questions, you lock the door, walk away, and keep the money.

Shirley spotlighted one company – All Day Hospice Care – that pulled in $3.1 million from Medicare since 2023, roughly $6,000 per patient, out of a small suite in an unmarked office building.

When scrutiny arrived, the office went dark.

No patients.

No staff.

Just millions in Medicare payments gone.

Shirley filmed himself confronting workers at these locations and demanding answers – empty rooms, no patients, nice cars parked out front.

His nearly 40-minute video racked up 6 million views on X.

"It just seems like a lot of people are getting rich off the death of old people," Shirley said.

He's right.

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The Victims Nobody Is Talking About

Behind every fraudulent billing number is a real senior who had their identity stolen.

Lynn Ianni found out her Medicare number had been used to enroll her in hospice care she never requested and never received.

"I didn't feel protected. I didn't feel safe," she told CBS News. "I felt abused by a system that was truly broken."

Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services, estimates that roughly 100,000 Medicare beneficiaries across Los Angeles County have had their numbers compromised in schemes like this.

CBS News confirmed what Shirley found on the ground.

Roughly 1,800 licensed hospice providers are operating in Los Angeles County – six times the national average relative to its elderly population.

More than 742 of them show multiple fraud indicators under California's own criteria.

Nearly 500 are clustered within a single three-mile stretch of Van Nuys Boulevard.

And 89 of them are registered to one building.

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Newsom Had Four Years of Warnings

California's own state auditor sent Gavin Newsom a formal letter in March 2022 documenting exactly what was happening.

Los Angeles County had gone from 109 hospice agencies in 2010 to 1,841 by 2021 – a 1,589% increase – while the elderly population that actually needs hospice care grew just 40%.

The auditor estimated those agencies had already overbilled Medicare by $105 million in a single year.

Newsom paused new hospice licenses.

That was it.

The hundreds of fake agencies already operating kept billing.

His own state health department then set a January 1, 2026 deadline for emergency oversight regulations it said were necessary to prevent "serious harm to public peace, health, safety, and general welfare."

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Newsom missed it.

The DOJ didn't wait for him. Federal prosecutors sentenced five defendants from one sham ring – House of Angels Hospice – to a combined total of more than 23 years in federal prison after they stole nearly $16 million from Medicare using foreign nationals' stolen identities as straw owners.

One case.

Hundreds more are still open.

Newsom's Response Was to Attack the People Exposing It

When Shirley published his California investigation, Newsom's press office went after Shirley directly – then pivoted to blaming Donald Trump.

"Let's see what Trump is up to on this," Newsom's team posted on X.

When Dr. Oz walked Van Nuys in January and pointed to 42 hospices in a four-block radius, Newsom filed a civil rights complaint against him.

Trump's team, meanwhile, has been doing what Newsom won't.

Vice President JD Vance is leading a federal anti-fraud task force targeting California.

Oz ordered Newsom to produce a comprehensive fraud action plan.

The DOJ is prosecuting the schemes California ignored for years.

The 2022 state audit found that Newsom's administration was issuing new hospice licenses even while aware of active fraud indicators in those same applications.

They knew.

They approved the licenses anyway.

Every stolen Medicare dollar belongs to a senior who paid into that system for decades.

Nick Shirley walked into those empty offices and demanded to know where the money went.

Gavin Newsom had four years to ask the same question – and spent them filing complaints against the people who did.

Sources:

• Amy Curtis, "Nick Shirley Explains Exactly How the California Hospice Fraud Scheme Works," Townhall, March 18, 2026.
• "Four California Residents Sentenced to Prison in Connection with $16M Hospice Fraud and Money Laundering Scheme," U.S. Department of Justice, November 18, 2025.
• "Trump Administration Prioritizes Affordability by Announcing Major Crackdown on Health Care Fraud," HHS.gov, February 25, 2026.
• "LA Hospice Fraud Exposed With Roughly 1,800 Providers Operating in County," Fox News, March 2026.
• Dr. Oz, "Dr. Oz Pledges to Tackle Hospice Fraud," CBS News, March 2026.
• "CBS News Exposed the Massive California Hospice Fraud Happening on Gavin Newsom's Watch," Townhall, March 11, 2026.