Vice President JD Vance revealed this week that about $7 billion worth of Small Business Administration (SBA) fraud has been discovered in California, an indicator the theft of federal funds across all departments in the Golden State could well exceed any other state’s.
“I think we have a fraud problem that is much worse in California than it is in Minnesota,” Vance said in an interview Thursday with Newsmax.
He continued, “I was talking actually to our small business administrator and I think she found probably a half billion dollars of fraud in Minneapolis and the broader Minnesota area. I think she’s found 7 billion dollars worth of fraud in California.”
“This is unfortunately a problem that is much bigger than Minnesota,” he added. ”But it also highlights how absurd this effort to prevent immigration enforcement is.”
The $7 billion number becomes even more daunting when you consider it is only in connection with SBA financing of business grants and loans.
Federal prosecutors have estimated that the total amount for Minnesota could top $9 billion in total, but that includes multiple federally funded programs such as food stamps, health care, and social services.
In early January, President Donald Trump announced on Truth Social, “Fraud investigation of California has begun,” without going into specifics of the areas that would be probed.
California reportedly ranks as the fourth largest economy in the world, leaving plenty of opportunities for financial malfeasance.
Steve Hilton, a Republican candidate for governor, said a preliminary review of purported fraud across California’s government programs follows hundreds of tips sent to Califraud.com, a website he launched a month ago along with Herb Morgan, a fellow Republican running for state controller.
The fraud and misuse of funds covered several areas of state government. The review is based on based on evidence from whistleblowers, contractors, and service providers, Hilton told Newsweek.
Hilton predicted fraud in California would exceed $250 billion.
Contributor Lowell Cauffiel is the best-selling author of the Los Angeles crime novel Below the Line and nine other crime novels and nonfiction titles. See lowellcauffiel.com for more.
