President Donald Trump is expanding Vice President JD Vance’s role in a sweeping anti-fraud crackdown, formally branding him the nation’s “fraud czar” after federal agents moved in on a major healthcare fraud operation in California.
The move came amid broader Cabinet shakeups, with Trump signaling continued confidence in Vance by putting him front and center on what he described as an “unprecedented” problem tied largely to Democratic-run states.
Vance announced Thursday that his fraud task force helped dismantle an alleged $50 million hospice and healthcare fraud scheme in the Los Angeles area.
“Our task force isn’t wasting any time cracking down on fraud,” Vance wrote on X. “This morning in the LA area, federal law enforcement is taking down fraudsters who stole $50M+ from Americans by defrauding our healthcare and hospice systems. Thanks to @DrOzCMS and @USAttyEssayli for their work.”
Our task force isn’t wasting any time cracking down on fraud.
This morning in the LA area, federal law enforcement is taking down fraudsters who stole $50M+ from Americans by defrauding our healthcare and hospice systems.
Thanks to @DrOzCMS and @USAttyEssayli for their work. https://t.co/6rT6rm38rL
— JD Vance (@JDVance) April 2, 2026
Trump followed with a Truth Social post Friday morning, making the designation official and outlining how aggressively he wants the effort to expand.
“Vice President JD Vance is now in charge of ‘FRAUD’ in the United States,” Trump wrote. “We will call him the ‘FRAUD CZAR,’ and his focus will be ‘EVERYWHERE,’ but primarily in those Blue States where CROOKED DEMOCRAT POLITICIANS, like those in California, Illinois, Minnesota (Somalia beware!), Maine, New York, and many others, have had a ‘free for all’ in the unprecedented theft of Taxpayer Money.”
Trump described the scope of the problem as huge. He wrote that fraud across the country is “massive and pervasive,” adding that the outcome of the crackdown could reshape the country’s financial position.
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“The job (Vance) will be doing, in conjunction with many great people within the Trump Administration, will be a major factor in how great the future of our Country will be,” Trump wrote.
“The numbers are so large that, if successful, we would literally be able to balance our American Budget.”
He pointed to the California raids already underway. “Raids have already started in L.A. … Good Luck JD!” Trump added.
Trump had already placed Vance in charge of the Task Force to Eliminate Fraud, a government-wide initiative targeting abuse in federal benefit programs.
The new “fraud czar” label underscores how central the effort has become within the administration.
The role grew out of what Trump previously described as a “war on fraud,” later formalized through an executive order placing Vance at the center of coordination across agencies.
The California crackdown stands as one of the most visible early results tied to that push.
Federal authorities say 221 hospice and home healthcare providers in the Los Angeles area have already been suspended due to suspected fraud, with more actions expected as the investigation expands.
“The Administration’s War on Fraud once again yields results as more suspensions take place and fraudsters face justice for ripping off hard-working Americans and stealing their tax dollars and social services,” a Vance spokesperson noted.
“The Vice President and his task force are proud of these latest figures and expect to see this number continue to grow dramatically.”
Federal agents, including FBI personnel and SWAT teams, carried out arrests tied to the operation in the Los Angeles area, targeting businesses suspected of submitting fraudulent healthcare claims.
Authorities said at least two individuals connected to a separate $7 million fraud scheme were also taken into custody as part of the broader enforcement push.
Officials indicated the number of suspensions is likely to climb. “We expect this number to grow much, much higher in the coming weeks,” a senior administration official added.
Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz contrasted the federal effort with California’s pace.
“In 10 weeks we’re getting close to what Governor Newsom did in four years,” Oz pointed out.
First Assistant U.S. Attorney Bill Essayli detailed the scope of the case. “In coordination with the Task Force to Eliminate Fraud, federal law enforcement executed several arrests and search warrants in the Los Angeles area this morning targeting hospice and health care fraud,” Essayli told viewers.
“Operation Never Say Die involves 11 defendants who engaged in fraud totaling more than $50 million. Those arrested today will appear in federal court this afternoon.”
Essayli also directed criticism at California Gov. Gavin Newsom. “I call him the fraud king for a reason,” Essayli said. “He has reigned over billions and billions of dollars of fraud…it’s going to be into the hundreds of billions of dollars under his watch.”
He pointed to recommendations from state auditors that he said were not implemented.
“They’re supposed to have passed regulations by January 1st of this year… California does not have sufficient regulations to crack down on fraud,” Essayli added, “He’s refusing to implement those regulations because he doesn’t want to own the problem!”
Essayli said enforcement efforts will continue. “We’re going to do our job. You’re going to see a lot more fraud. We’re going to work hand in hand with this task force. And I think it’s going to be in the hundreds of billions eventually,” he said.
Newsom’s office rejected the accusations. “This is utter bullsh** from top to bottom,” a spokesperson shot back.
“California will keep doing its part to go against fraud, we ask the federal government to work with us to do the same.”
The governor has denied claims that fraud is not being addressed in the state.
Separate reports have pointed to large-scale losses tied to fraud and mismanagement, including estimates that taxpayer losses could reach at least $180 billion.
One report highlighted major cases involving unemployment benefits during the COVID-19 pandemic and allegations tied to a former top aide.
Money laundering is fraud.
Information laundering, where unsourced slop gets laundered through multiple right wing “news” outlets is fraud on the public.
The NY Comic Book cites “facts” completely unsourced, thinly sourced, or simply made up by by right wing activists posing… https://t.co/VhRwHxp5qc
— Governor Newsom Press Office (@GovPressOffice) April 2, 2026
Newsom’s office pushed back on those claims in a series of statements on social media.
“Money laundering is fraud. Information laundering, where unsourced slop gets laundered through multiple right wing ‘news’ outlets is fraud on the public,” the governor’s press office wrote.
“The NY Comic Book cites ‘facts’ completely unsourced, thinly sourced, or simply made up by by [sic] right wing activists posing as ‘journalists,’ with a straight face, knowing that other outlets and social media will misleadingly repeat and amplify,” the statement continued.
