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Andrew Ferguson, chairman of the Federal Trade Commission, is expected to serve as the task force's vice chairman and handle day-to-day operations, CBS News reports. President Donald Trump is anticipated to issue an executive order in the coming days to formally establish the group, the news outlet said.
The White House task force would operate separately from a related Justice Department effort led by Colin McDonald, a Trump nominee for a new fraud-investigation role at the department. McDonald is expected to also probe fraud in Minnesota uncovered by YouTuber Nick Shirley and other independent journalists.
California has long grappled with documented issues of waste, fraud, and weak oversight in state and federally funded programs. State auditors have for more than a decade flagged problems including persistent cost overruns, inadequate internal controls, and unimplemented reform recommendations across various initiatives, CBS News reported last month.
California's Employment Development Department faced acute criticism during the pandemic, when unemployment-insurance fraud resulted in an estimated $20 billion or more in improper payments, while many eligible claimants endured lengthy delays in receiving benefits, according to NPR News.
Separately, federal officials have recently scrutinized fraud risks in hospice and home-health services, particularly in Los Angeles County. Last week, Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz visited the area to draw attention to the issue, citing the rapid proliferation of hospice providers and potential billions in improper billings.
One physician in California reportedly billed the government $120 million in a single year while claiming oversight of 1,900 patients -an volume that has raised questions about feasibility and potential abuse.
The county is home to nearly 2,000 licensed hospice agencies, a number exceeding the combined total in more than 36 states and roughly 30 times the count in states such as Florida or New York.
"Hospice is crazy here," Dr. Oz said. "You've got hospice that's grown seven-fold in the last five years. They represent about three and a half billion dollars of fraud, we believe, just in LA County."