fraud

May 19 (UPI) — The U.S. Department of Justice announced it will drop criminal fraud charges against billionaire Indian businessman Gautam Adani.

The Justice Department submitted a motion Monday asking a federal judge to drop the indictment from 2024 brought by the U.S. Attorney’s Office in Brooklyn, N.Y. The request said the department “reviewed this case and has decided, in its prosecutorial discretion, not to devote further resources to these criminal charges against individual defendants,” NBC News reported the court filing said.

Principal Associate Deputy Attorney General Trent McCotter and Brooklyn U.S. Attorney Joseph Nocella signed the filing. Prosecutors assigned to the case were not included.

Separately, the President Donald Trump administration announced it had reached a $275 million settlement with a company founded by Adani over “egregious” apparent violations of U.S. sanctions against Iran, Politico reported.

According to the U.S. Office of Foreign Assets Control, Adani Enterprises Limited bought $191 million worth of shipments of liquefied petroleum gas from a Dubai-based trader. OFAC alleged the company overlooked indications that the gas originated from Iran, Politico said.

Adani is the founder and chair of the Adani Group, a conglomerate based in Ahmedabad, India. Brooklyn prosecutors charged him and others in a fraud and bribery scheme in November 2024, while President Joe Biden was in office.

Adani’s lawyers from Sullivan & Cromwell included two of Trump’s personal attorneys: Robert Giuffra Jr. and James McDonald, Politico reported.

Adani’s worth is estimated at more than $100 billion. He is one of the richest people in Asia, and is an ally of Indian Prime Minister Narendra Modi.

Prosecutors alleged that Adani and his co-defendants paid $250 million in bribes to Indian government officials. The bribes were to help Adani Green Energy, a subsidiary, win approval to create India’s largest solar power plant. It was projected to bring $2 billion in profits over 20 years.

They also alleged the defendants defrauded American and international investors by gaining funds “on the basis of false and misleading statements.”

Adani Group denied the allegations and called them “baseless.”

SACRAMENTO — Dana Williamson, one of the political heavyweights at the center of a financial scandal involving gubernatorial candidate Xavier Becerra, looked shell-shocked Thursday morning in a federal courtroom in downtown Sacramento, as most folks do when bad choices collide with the hard realities of the justice system.

A thousand-yard stare in her eyes, Williamson responded “guilty” three times in a voice that required a microphone to be heard as the judge walked her through a plea deal reached days before with the U.S. Department of Justice. She likely won’t be sentenced until fall (possibly close to the general election) but will — again, just a likely here — at best face home confinement and at worst upward of three years in prison.

It’s a colossal fall for a woman who wasn’t so much a consultant as a political operative to Becerra, Gov. Gavin Newsom, former Gov. Jerry Brown and a slew of companies including Meta and PG&E. She was known at the Capitol as a woman who got things done, sometimes with finesse, sometimes not.

It was her savvy and ability to deliver whatever was needed through her deep connections and knowledge of the complicated structures — official and cultural — that govern the California halls of power that make her predicament all the more confounding. Especially because, far from stealing money for self-enrichment, she actually paid money to be part of this scheme.

That alone, to me, raises questions.

Though Williamson’s guilty plea may seem like an ending to the saga, it shouldn’t be, because there’s still a lot lurking in the dark corners of this deal.

If Becerra makes it past the primary, which seems (I’ll use that word again) likely, voters have a right to know.

Here’s the simple backstory, according to court documents. Becerra’s close aide, Sean McCluskie, took a pay cut to remain with his boss when he moved to Washington to become President Biden’s secretary of Health and Human Services.

Strapped for cash, McCluskie asked Williamson to receive money from Becerra’s dormant campaign account — which Becerra was legally not allowed to manage while holding federal office — and pass it through a bunch of other accounts before giving it to McCluskie’s wife as payment for a nonexistent job.

Williamson’s attorney, McGregor Scott, said Thursday that Williamson received $7,500 each month from the Becerra account and added $2,500 from her own funds before sending it on to ultimately reach McCluskie — for a total of $10,000 a month.

McCluskie was “living on a government salary,” Scott said Thursday after court. “Wife is home with the kids. They didn’t have enough money, and that’s where this all originated. [Williamson] was simply trying to help a friend in a pinch as best she could.”

Scott, a former Bush and Trump United States attorney, managed to get Williamson’s original 23-count indictment knocked down to the Becerra account issue, along with lying to the FBI and filing a false tax return.

McCluskie entered his own guilty plea in the case last November and is scheduled to be sentenced, along with the third lobbyist, in June.

Becerra, who is a slim-margin front-runner for governor, was the victim in this case — or more precisely, his state campaign bank account was, according to court documents.

There has never been any indication that Becerra was investigated as a participant, and he has forcefully denied wrongdoing, calling it a “gut punch” that his advisers allegedly betrayed him.

That, of course, hasn’t stopped the other candidates from using the case against him.

“My opponents have spent millions spreading lies to purposefully mislead voters,” he wrote Thursday on social media. “Today confirms what I have said from day one: I did nothing wrong. Case closed.”

Meanwhile, Scott, the attorney, also said Thursday that Williamson assumed, based on her conversations with McCluskie, that McCluskie had spoken to Becerra about the concept of the money transfer. Text messages in court records show a brief and ambiguous exchange between McCluskie and Williamson that backs that up.

Scott said that Williamson never spoke directly with Becerra about the scheme.

That leaves the distinct possibility that Williamson believed Becerra knew what was happening — but never asked him. Dumb? Maybe. But Williamson isn’t usually dumb.

“The understanding that McCluskie conveyed to my client was it was OK to proceed,” Scott said.

Becerra has repeatedly said he believed the $10,000 a month was a legitimate fee being paid to manage the funds in the dormant account while he could not — though that is an amount above what is usual for such work, as my colleague Dakota Smith has reported.

Becerra has also repeatedly used some variation of the “case closed” line, seemingly hoping to move past this scandal without further answers.

But at the very least, it deserves some kind of mea culpa from Becerra or lessons learned, a more robust conversation than the brush-off it’s been getting. Because either McCluskie is one heck of a con man who rolled both Becerra and Williamson, making both believe what was happening was kosher with entirely different tales, or someone isn’t being entirely honest.

Did Becerra never question why an account with almost no activity was costing so much to manage? Did he never wonder what Williamson was doing to earn all that money? Should he, with his decades of legal and political experience, have seen red flags, even with a trusted adviser? Or is Williamson, facing sentencing, just trying to paint herself in a sympathetic light?

“I’m not trying to paint my client as a victim,” McGregor said. “She’s accepted responsibility today for what she did by pleading guilty. She’s now a felon. So you know, we’re not trying to do anything to dance away from that.”

Williamson may be done dancing, but the music’s still playing, and the fancy footwork of politics continues.

Vice President JD Vance said Wednesday that the Trump administration is deferring $1.3 billion in Medicaid reimbursements to California over concerns the state is allowing “fraudsters” to drive up costs to taxpayers, including by pushing unnecessary medications on unsuspecting patients.

“There are California taxpayers and American taxpayers who are being defrauded because California isn’t taking its program seriously. But also, you have people who’ve been prescribed medications that they don’t even need,” Vance said. “Sometimes they’ve had drugs put into their bodies that they don’t need because fraudsters have actually encouraged false prescriptions and false administration and medications.”

Vance, standing alongside Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, said the administration is also sending letters to all 50 states informing them that if they do not “effectively and aggressively prosecute Medicaid fraud in their states,” they will see federal funding cut off as well.

“We want California to get serious about this fraud,” said Vance, who President Trump named his “fraud czar” last month.

Oz called out what he said was widespread fraud in hospice services and similar in-home care programs nationally — and particularly in the Los Angeles region — and announced a six-month moratorium on new Medicare enrollment for hospices and home health agencies.

“A third of all these programs in the entire country are in Los Angeles. Ask yourself, how is that possible? It’s not,” Oz said. “They’re not that many people dying in Los Angeles. We’re not talking about California, just Los Angeles.”

He said he and others in the administration determined that “at least half of the hospices, in the entire area around Los Angeles, are fraudulent,” and had shut down 800 of them that last year had “charged the federal taxpayer $1.4 billion,” which “will no longer be paid.” That is a major increase from the 450 providers the administration said it had suspended as of last month.

The announcement was the latest attempt by the Trump administration to highlight and rein in fraud in federal healthcare benefits programs, particularly in blue states. The actions were met with immediate push back from California officials.

“We hate fraud. But that’s NOT what this is,” Gov. Gavin Newsom’s office posted on the social media site X. “Vance and Oz are attacking programs that keep seniors and people with disabilities OUT of nursing homes. Pretty sick.”

Newsom’s office said that the growth of In-Home Supportive Services placements in California was “simple,” and due to California “keeping more people OUT of far more expensive nursing homes!”

Such services cover assistants who help people with daily tasks such as bathing, laundry or cooking; provide needed care such as injections under the direction of a medical professional; and accompany them to and from doctor’s appointments. A 2020 report by the California state auditor found that nearly three-quarters of IHSS caregivers assist a family member.

Newsom’s office wrote IHSS care costs $30,000 a year, while nursing home care costs $137,000 a year. “SAVING TAXPAYERS: $107K per person,” it wrote.

California Atty. Gen. Rob Bonta also criticized the administration’s moves.

“Once again, California appears to be targeted solely for political reasons,” Bonta said. “The Trump administration is planning to defer over $1 billion in Medicaid funding for vital programs that helps seniors and people with disabilities remain safely in their homes.

“My team is carefully reviewing all available information. We have not hesitated to challenge unlawful actions by the Trump administration, and we will continue to act whenever Californians’ rights or access to critical services are threatened,” he said.

Democratic Sen. Alex Padilla also lashed out at the Trump administration.

“The Trump Administration is attacking California over claims that they can’t back up,” Padilla wrote on social media. “Let’s be real, this isn’t about fraud — it’s about punishing a state that didn’t vote for him. Political retribution plain and simple.”

Fraud in California’s hospice industry has been a problem for years.

Authorities in the state promised to crack down on the issue after a Times investigation in late 2020 revealed that unscrupulous providers were billing Medicare for hospice services and equipment for patients who were not actually dying — with the hospice industry in the state exploding in size.

California’s Medicaid program, known as Medi-Cal, is expected to cost about $222 billion for the budget year starting July 1, including both state and federal funding. Roughly 15 million Californians, more than a third of the state, are on Medi-Cal.

Vance, a potential 2028 presidential hopeful, has taken up his work as “fraud czar” with vigor, traveling around the country to drive home the idea that the Trump administration is working diligently to bring down healthcare costs by addressing waste, fraud and abuse that is rampant across the system.

He has said that waste and abuse is particularly prevalent in Democratic-led states such as California, New York and Minnesota.

“We have red states and blue states that go after fraud aggressively, but we also, unfortunately, have some states, mostly blue states, unfortunately, that do not take Medicaid fraud very seriously,” he said Wednesday.

Vance specifically threatened to cut off what he said is billions in federal funding for state-run fraud control units that are meant to prosecute people who abuse the system, but which he said aren’t doing the work. “This is a tool that we want the states to use, but unfortunately, a lot of states aren’t using these tools at all,” he said.

The focus on fraud comes against a backdrop of criticisms that other policy measures pushed by the administration have driven healthcare costs up or made it harder for people to access healthcare — including cuts to Obamacare subsidies and new work requirements in Medicaid, which are expected to strain hospitals around the country and led to millions of people losing healthcare coverage.

Democrats and Republicans have argued over who is to blame for rising healthcare costs, and Vance and Oz have clashed with California leaders before.

In January, Newsom filed a civil rights complaint against Oz after he posted a video accusing Armenian crime groups of carrying out widespread healthcare fraud in Los Angeles. In the video, Oz was shown driving around Van Nuys, saying about $3.5 billion worth of Medicare fraud had been perpetrated by hospice and home care businesses — and “run, quite a bit of it, by the Russian Armenian mafia.”

Newsom called Oz’s claims “baseless and racist.”

The administration previously launched investigations into potential healthcare fraud in at least five states — California, Florida, Maine, Minnesota and New York — and halted some $243 million in Medicaid payments to Minnesota over fraud concerns.

The Centers for Medicare & Medicaid Services has also acknowledged using errant figures to justify a fraud probe in New York, deepening concerns in the administration’s methods for identifying problematic activity.

Vance said the deferral of funds to California and the letters warning other states to get serious is not about political retribution, but a wake up call. He said the Trump administration wants to help states root out fraud and abuse, including with new technologies — but can’t do so if they are not “willing to help themselves” first.

“We don’t want to turn off any money. What we want to do is ensure that people are taking fraud seriously. We want to protect Medicaid, we want to protect Medicare,” Vance said. “But we can’t do that if the states that are administering those programs are allowing those programs to be fleeced by fraudsters.”

The Associated Press contributed to this article.