There’s fraud to be found when investigators get around to looking into the schemes in California.
That’s according to a spokesperson for the state controller.
In fact, it’s “everywhere.”
WE ARE FIGHTING BACK: Emergency Appeal Filed & More CA Fraud Exposed https://t.co/jIB4cbmYmx
— James O’Keefe (@JamesOKeefeIII) April 7, 2026
O’Keefe Media Group Tuesday released an undercover video showing Bismarck Obando, the press secretary for State Controller Malia Cohen, confirming that fraud is in “cities, counties, special districts, hospitals, insurance companies.”
According to a report at the Post-Millennial, it’s partly because the office doesn’t have the staff to do audits, although some “that are required” have been done.
“Instead of funding us, they cut us. They keep cutting our auditing teams,” he said.
He charged that the funding isn’t there because “they don’t want to find out what the deal is.”
He said there “100%” is fraud in the state, the report.
“I mean, we’re like the fourth-biggest economy in the entire world. So yes, there’s money to be found,” he said.
Even if it is caught, there’s little done, he said.
“People get fired, but there’s not much you can do because you can’t really track the money. Once you catch the debit out, what are you going to do with it?” the said.
The report explained, “James O’Keefe, recounting his group’s latest reporting on the ‘homeless industrial complex,’ including homeless people being paid cash to fraudulently fill out petitions, said, ‘They can’t conduct the audits because they don’t have the resources. Well, they have a lot of resources. Fraud is happening. Fraud is very real. Overspending is happening. We’ve just shown you. We’ve taken you through the homeless industrial complex, which is the snowflake on top of the iceberg. Money is not being properly accounted for, and the audits meant to expose it are by the State Controller’s own admission.’”