fraud

Fans of the musical “Hamilton” know three things about the nation’s first Treasury secretary because of Lin-Manuel Miranda’s brilliance. First, that Alexander Hamilton cheated on his wife, Eliza. Second, he was killed by the vice president, Aaron Burr. Third, and most importantly, he was considered a highly principled man. And when it came to the topic of nationalizing elections, do you know how this Revolutionary War vet and founding father characterized doing so?

A threat.

Referring to corruptible public officials, Hamilton wrote in the Federalist Papers: No 59: “With so effectual a weapon in their hands as the exclusive power of regulating elections for the national government, a combination of a few such men, in a few of the most considerable States, where the temptation will always be the strongest, might accomplish the destruction of the Union, by seizing the opportunity of some casual dissatisfaction among the people to discontinue the choice.”

Hamilton’s prescient views became the framework for the Election Clause in the Constitution. And since returning to the White House, President Trump has been searching for ways to usurp it. Last month he made calls to nationalize elections. This month he’s at it again.

He’s also pushing Congress to pass his so-called SAVE Act, which would require voters to show proof of citizenship when they register to vote. It sounds innocuous until you realize a driver’s license isn’t good enough; a passport would often be required. But half the country doesn’t have a passport, and it costs roughly $200 and a few weeks to get one. The logistical burden is unreasonable and cruel: Consider that this year, during primary season, we’ve already witnessed natural disaster — such as the tornadoes that recently ripped through the Midwest or the fires in Texas — upend entire communities. Many people would not have been able to vote, simply because they had been separated from their papers during the disaster.

The financial obstacles that would be created by the SAVE Act are at least as onerous: Why would Congress choose to financially burden voters — with what is essentially an unlawful poll tax — at a time when the unemployment rate and gas prices are up and the approval rating for nearly everyone in office is down? There are a couple of reasons. One is that the party controlling Congress hopes to suppress voting in order to defy the will of the American majority and cling to power.

Another reason lawmakers support this terrible bill is simply that Trump wants it. Some Republicans in office are so afraid of angering a vengeful president that they would rather entertain his authoritarian tendencies than go through the fire of his opposition during a primary.

For politicians such as Sen. John Cornyn (R-Texas), who this week changed his long-held position on the filibuster in order to push the SAVE Act, it’s simply about political survival. He needs the president’s endorsement heading into the runoff for his Senate seat.

Trump has called the election overhaul bill his top priority — not the war he started with Iran, not returning the billions collected from illegal tariffs, not justice for Jeffrey Epstein’s victims. Before there was a Constitution, there was a warning, written by Hamilton and other founders, whose concerns about nationalized elections are well documented and have proved to be well founded.

You would think a nation in the midst of beating its proverbial chest about our 250th birthday would take more heed from the country’s founders. But nope: This week Florida state lawmakers, in an attempt to appease their state’s most powerful resident, passed an election overhaul law that mirrors the federal SAVE Act. More red states are likely to follow, not because a national wave of voter fraud has been unearthed by authorities, but because the authorities want to stay in the good graces of someone who has yet to prove any widespread fraud other than his own.

The party that famously railed against “the bridge to nowhere” is now offering bills that solve nonexistent problems. Or in some cases, creating problems, particularly for women who changed their names after marriage so their state IDs don’t match their birth certificates.

Cornyn is not alone in exchanging his principles for Trump’s favor; he’s just the most recent. However, the manner in which he announced his flip flop was particularly tone deaf.

“If a man takes a swing at you and barely misses, that doesn’t make him a pacifist — it just means he has bad aim,” Cornyn wrote in an op-ed about the bill for the New York Post, the newspaper founded by Hamilton in 1801. “Standing still and giving him a second free swing wouldn’t be wise or honorable: it would be foolish.”

In 2016, then-candidate Trump took his first big swing at our elections when he implied — without evidence — that his opponent, Sen. Ted Cruz, had rigged the election after losing to him in the Iowa Republican caucus. Reportedly Trump even tried to get the state’s party chair to overturn the result. He’s been throwing jabs at our elections ever since. The Jan. 6 riot was a haymaker that barely missed. Given the president’s propensity to hand out Trump 2028 hats, it seems passing the SAVE Act would be, in Cornyn’s words, setting voters up to stand there while Trump takes another swing at our democracy.

YouTube: @LZGrandersonShow

Minnesota’s governor and attorney general on Wednesday defended their efforts to combat fraud and told a U.S. House committee that their efforts have been hampered by President Trump’s immigration crackdown in the state.

Republicans on the House Oversight Committee accused Gov. Tim Walz and Atty. Gen. Keith Ellison of stalling to fight fraud in government programs, saying they put politics ahead of rooting out abuse instead of pausing payments.

“You have not been good stewards of the taxpayer dollars,” said Republican Rep. James Comer of Kentucky, chair of the committee. “And the Democratic position is keep the money flowing. The American taxpayers have had enough.”

Walz said he wanted to work with the federal government to help with fraud investigations, but the immigration surge was making that more difficult.

“The people of Minnesota have been singled out and targeted for political retribution at an unparalleled scale,” Walz said. “We’re going to prosecute, as we have, every single person that’s involved in fraud, but we can’t do it alone.”

Walz and Ellison defended their efforts on fraud, while also trying to turn the focus of the hearing to the surge of 3,000 federal agents in Minnesota that began in December. The Trump administration cited fraud as one justification for its enforcement action. Homeland Security Secretary Kristi Noem testified Tuesday that about 650 investigators remain in Minnesota as part of a broader fraud probe.

“Operation Metro Surge did nothing to address fraud in our state,” Ellison said. “It harmed our economy and it scarred our people and it dealt a devastating blow to fraud enforcement in Minnesota.”

Ellison noted the series of resignations of lawyers in the U.S. Attorney’s Office in Minnesota, leaving those who remain “drowning in immigration-related petitions” instead of prosecuting fraud. On Tuesday, the U.S. attorney for Minnesota appeared before a judge for a contempt hearing related to Immigration and Customs Enforcement not returning personal property of detainees.

Ellison said his office has “punched above our weight” in winning 300 Medicaid fraud convictions and recovering more than $80 million for taxpayers.

Republican Rep. Clay Higgins of Louisiana called on Ellison to resign, accusing him of not leading investigations into criminal fraud activity.

Last week, Vice President JD Vance said the Trump administration would “temporarily halt” $243 million in Medicaid funding to Minnesota over fraud concerns, as part of what he described as an aggressive crackdown on misuse of public funds. Minnesota sued on Monday to stop the money from being withheld, warning it may have to cut healthcare for low-income families if the money is held back.

Comer on Wednesday accused Walz of not stopping Medicaid payments despite knowledge of fraud because he “didn’t want to rock the boat.”

Comer and other Republicans accused Walz of lying about when he first found out about fraud in a $250-million scheme known as Feeding Our Future and stalling to act in order to protect the Somali American community. Republican Rep. Jim Jordan of Ohio asked Walz if he know how many of those who had been indicted were Somali Americans.

“Their ethnicity is not my concern,” Walz said.

Somali Americans make up 82 of the 92 defendants charged so far in the Feeding Our Future case, according to the U.S. Attorney’s Office for Minnesota.

Democratic Rep. Robert Garcia of Long Beach, as part of the effort to focus the hearing on the immigration crackdown, held up images of children detained by federal officers and a picture of the blood-stained car seat of Renee Good who was killed by an officer. Federal officers also killed another Minnesota resident, Alex Pretti, who had been filming enforcement operations.

“This violence does not make us safer,” Garcia said. “It does not address fraud, waste and abuse.”

Bauer writes for the Associated Press.

Surprise ruling comes weeks after the media mogul was convicted and jailed for 20 years on national security charges.

A Hong Kong appellate court has overturned a fraud conviction against pro-democracy media tycoon Jimmy Lai in a surprise ruling weeks after his jailing for 20 years on a separate national security charge.

The ruling by the Court of First Instance on Thursday said that it allowed the appeal from Lai and ⁠another defendant in the case to proceed as a lower court judge had “erred”.

“[We] allow the appeals, quash the convictions and set aside the sentences,” the judges wrote.

The conviction that was overturned was from an earlier fraud case in which prosecutors alleged that a consultancy firm operated by Lai, 78, for his personal use had taken up office space that his now defunct media business – Apple Daily – rented for publication and printing purposes.

This was in breach of the terms of the lease Apple Daily signed with a government company and amounted to fraud, prosecutors said.

Lai had been sentenced to five years and nine months in prison in 2022 on the two fraud charges.

Former Apple Daily executive Wong Wai-keung was also charged in the same case and jailed for 21 months.

Judges at the Court of Appeal wrote in their judgement that while Apple Daily Printing had breached the lease terms by allowing the firm to use part of the space, it didn’t owe a duty to disclose its breach. They said even if it had owed and breached that duty, the same could not be attributed to Lai and Wong as a matter of law.

The trial judges’ “reasoning in concluding that the applicants were liable for the concealment as the prosecution contended is unsupportable”, they said.

Neither defendant appeared in court.

The ruling would slightly reduce Lai’s total prison time. The judges handling Lai’s national security case allowed the two sentences to be served concurrently for only two years, with the other 18 years to be added after the fraud sentence.

The lengthy sentence – over ‌two counts of conspiracy to collude with foreign forces and one for publishing seditious materials – has raised concerns that he could spend the rest of his life in prison.

Lai’s children have expressed hopes that a visit by United States President Donald Trump to Beijing could help secure the release of their father, a British citizen. The White House has confirmed that Trump will travel to China on March 31 through April 2 to meet Chinese leader Xi Jinping.

United Kingdom Foreign Secretary Yvette Cooper has said Lai was sentenced for exercising his right to freedom of expression and called on the Hong Kong authorities to release him on humanitarian grounds.

Chinese and Hong Kong authorities have defended Lai’s sentencing in the national security case, saying it reflected the spirit of the rule of law. They also insisted the security law is necessary for the city’s stability.

In a separate ruling on Thursday, a Hong Kong court sentenced the father of a wanted pro-democracy activist to eight months in prison under the city’s national security law for attempting to withdraw funds belonging to an “absconder”.

Kwok Yin-sang, 69, was found guilty on February 11 for “attempting to deal with, directly or indirectly, any funds or other financial assets or economic resources” after he tried to terminate his daughter Anna Kwok’s insurance policy and withdraw the funds.

He is the first person in the city to be charged and convicted of the offence.

He had pleaded not guilty and did not testify at the trial.

A Republican from the South Bay who raised hundreds of thousands of dollars running unsuccessfully against Rep. Maxine Waters four times while promoting QAnon conspiracy theories was sentenced to four years in federal prison for misusing campaign funds, the Department of Justice announced Monday.

Omar Navarro, 37, pleaded guilty in June to a single count of wire fraud for defrauding his own election campaign. The perennial candidate had raised hundreds of thousands of dollars over the years from prominent right-wing figures while promoting QAnon conspiracy theories but never cracked 25% of the vote.

He was sentenced by U.S. District Judge Mark C. Scarsi, who ordered Navarro immediately remanded into federal custody. A restitution hearing will be scheduled at a later date to determine how much money Navarro must pay to compensate victims.

Narvarro ran to represent Los Angeles County residents in California’s 43rd Congressional District in the 2016, 2018, 2020 and 2022 election cycles.

From July 2017 to February 2021, he funneled tens of thousands of dollars in donations to his campaign committee back to himself through his mother, Dora Asghari, and friend Zacharias Diamantides-Abel, prosecutors said. In total, his scheme diverted around $266,00 in campaign funds, more than $100,000 of which went directly into his pocket, prosecutors said.

“Defendant could have used that money to buy radio advertisements, purchase billboard space, or send a mailer to aid him in the election,” prosecutors wrote in their sentencing memorandum. “He chose instead to steal his donors’ dollars and fund his lavish lifestyle, including using it to pay for Las Vegas trips, fancy dinners, and even criminal defense attorneys for his criminal stalking charge after he had the audacity to use his campaign money to pay a private investigator to stalk her.”

He set up a sham charity called the United Latino Foundation to embezzle additional funds for his personal use. He also wrote thousands of dollars’ worth of checks to Brava Consulting, a company owned by his mother. This money was allegedly payment for campaign work, but the bulk of it was simply funneled back to him.

Initially, Navarro denied the allegations publicly, writing on X last year that the claims were “baseless” and suggested Waters herself was behind the investigation. He pleaded guilty months later.

Prosecutors argued that a significant sentence was necessary given the “prolonged and pervasive” nature of his fraud and to discourage others from engaging in similar behavior “that undermines the very fabric of the campaign finance system, a system designed to promote trust in government.”

The other two people connected to the case were also criminally charged.

Navarro’s mother pleaded guilty in June 2025 to one count of making false statements after lying to the FBI when questioned about receiving funds from her son’s campaign. She will face up to five years in federal prison at her April 13 sentencing hearing.

Diamantides-Abel pleaded guilty in May 2025 to one count of conspiracy and awaits sentencing.

At a luncheon this week for L.A. County politicos, Supervisor Kathryn Barger pitched what she framed as a commonsense reform.

Legislators in Sacramento, she argued, need to change a 2019 law that extended the statute of limitations for sex abuse lawsuits, opening the floodgates for decades-old claims that have cost the county nearly $5 billion and counting in payouts.

“I want them in Sacramento to fix it,” she said. “I have to believe that we are the tip of the iceberg.”

The controversial law, Assembly Bill 218, has led to thousands of claims over abuse that took place in schools, juvenile halls and foster homes. Supporters say it continues to give survivors a chance at justice, while Barger and other officials warn the cost of the litigation is driving local governments to the brink of bankruptcy.

Rolling back AB 218, critics argue, is the single most obvious thing state lawmakers can do this legislative session.

The push has gained momentum amid concerns of fraud in the first of two payouts approved last year by L.A. County officials. At $4 billion, it was the largest sex abuse settlement in U.S. history, with the money set aside for more than 11,000 victims.

The Times reported last fall on allegations of fabricated claims filed by plaintiffs within the settlement, which prompted L.A. County Dist. Atty. Nathan Hochman to open an investigation. Hochman told the supervisors this week that his office is reviewing “thousands of claims” for fraudulent submissions and predicted savings in the “hundreds of millions if not billions of dollars.”

Speaking at the event Wednesday, Barger suggested capping attorneys fees — acknowledging that some high-powered attorneys in the room were involved in the county’s litigation.

Out of the $4-billion payout, she said, “about $1.5 billion will go to attorney fees — present company included.”

Barger referenced a former state Assembly speaker known for bare-knuckle tactics, which she said were needed now in the Capitol.

“If Willie Brown were up there, I’m sure he’d lock everyone in a room and slap some sense into them at this point,” she said.

Assembly Speaker Robert Rivas has asked California legislators to consider changes to AB 218. Critics say sexual abuse lawsuits are driving local governments to the brink of bankruptcy, while supporters say it is one of the few ways for victims of abuse to get justice. Rivas spoke in Ventura County on Nov. 18, 2025.

(Myung J. Chun / Los Angeles Times)

This session, Assembly Speaker Robert Rivas has assigned a group of legislators to look at what changes might be made to the law.

A spokesman for Rivas, Nick Miller, said the goal is to provide “meaningful access to justice for all survivors” without forcing service cuts in schools and governments.

“There is a group of members discussing possible solutions that strike the right balance on this critical issue,” Miller said.

It’s a tightrope walk that no legislator has mastered.

Sen. Benjamin Allen (D-Santa Monica), who tried last year to increase the burden of proof for these cases, was branded a protector of predators.

Sen. John Laird (D-Santa Cruz) got further with a pared-down bill only to watch it blow up last session over concerns he was trampling on victims’ rights.

“I worked hard to strike the middle ground,” Laird said. “It just was too hard.”

Organized labor, a powerful voice in Sacramento, could sway the equation. County unions said they were told repeatedly at the bargaining table last year that they couldn’t get raises because of the massive sex abuse settlements, potentially setting them on a collision course with victim advocates.

Lorena Gonzalez, who wrote AB 218 in 2019 before leaving the Legislature to head up the California Federation of Labor Unions, said lobbying firms had been urging unions recently to take the lead on convincing the Assembly to change the law. The union leaders have yet to take a stance, she said.

“Although there’s some desire to especially fix what happened in L.A., there wasn’t an overwhelming desire to roll it back,” she said.

While serving in the state Legislature, Lorena Gonzalez authored AB 218, a state law that extended the statute of limitations for lawsuits over sexual abuse in government facilities. Gonzalez, now with the California Labor Federation, spoke at Balletto Vineyards in Santa Rosa, Calif., on April 26, 2024.

(Jeff Chiu / Associated Press)

A Times investigation last fall found nine clients of Downtown L.A. Law Group, a law firm that represents thousands of plaintiffs in the county’s largest settlement, who claimed that recruiters had paid them to sue. Some clients said they were told to make up stories of abuse that became the crux of their lawsuit.

The firm, also known as DTLA, has denied paying any client to sue. Andrew Morrow, the main attorney on the cases for DTLA, argued in a Feb. 13 court filing that the recent subpoena by the State Bar seeking their court records as part of an investigation into the firm amounted to an “ill-advised fishing expedition.” The firm argued that allowing the State Bar to review its filings violates clients’ privacy.

“No one disputes that these allegations are troubling and, if true, serious,” Morrow wrote. “However, untested allegations printed in a local newspaper — no matter how compelling — do not override the privacy rights” of victims.

Assemblymember Dawn Addis (D-Morro Bay), a longtime advocate for sex abuse survivors who vehemently opposed the last attempt at changing AB 218, said that “there’s all kinds of discussions about potential solutions” for fraud underway in the Legislature.

But limiting victims’ ability to sue, as some have called on lawmakers to do, is a clear no-go, she said.

“Silencing victims is not the way to get out fraud,” she said.

Like many legislators, she pinned some of the blame for the alleged fraud on poor vetting by lawyers for L.A. County. The county has said the cost of taking depositions for more than 11,000 cases would be “astronomical,” and that no records exist for many of the older cases, leaving them defenseless.

In a statement to The Times, a spokesperson for the L.A. County counsel’s office said the Legislature created AB 218 “without a single safeguard against fraud.”

“That is their failure to own,” the statement said. “This is the system the Legislature built, and they need to fix it.”

The county maintains it is not trying to squash victims’ rights, but rather keep vital services — pools, parks, health clinics — open.

“I am tired of whenever a government official stands up and says, ‘Hey, there needs to be some reform here,’ that we’re accused of victim blaming, pedophile protecting,” says Joseph Nicchitta, the county’s acting chief executive.

After agreeing to the $4-billion payout in April, county officials opted into a second $828-million settlement in October covering an additional 400 cases. Since then, more than 5,000 cases have been filed that are not part of either settlement and still need to be resolved.

“Let me tell you what will not work for L.A. County,” Nicchitta said. “The nibbles around the edges — ‘Make the procedure a little tighter, we’ll require a couple more documents.’”

He said he believes the Legislature needs to weigh the need to pay survivors against the obligation to keep the social safety net intact. One solution, Nicchitta said, could involve a victims compensation fund that would eliminate the need for someone to hire an attorney in order to submit a claim and receive money.

“Acknowledge the harm, provide real competition, [and] do it fast,” he said. “You don’t need a lawyer.”

John Manly, a lawyer who has represented sex abuse survivors for more than 20 years, sits at his law office in Irvine on Dec. 29, 2023.

(Allen J. Schaben / Los Angeles Times)

After getting flooded with sex abuse claims related to juvenile facilities following a similar change in the statute of limitations, Maryland capped sex abuse cases against government entities last year at $400,000 and limited attorneys’ fees to 25% for cases resolved in court.

For many California trial attorneys, ideas such as these are nonstarters.

“The reason they’re proposing a victims’ fund is they continue to know that those people don’t have any political power,” said John Manly, a veteran sex abuse attorney who is part of the second L.A. County settlement. “The only power they have is to hire a lawyer and get justice.

“We’re going to fight,” he said.