Federal prosecutor calls Newsom 'king of fraud' as Trump launches California corruption probe

The Trump administration is ramping up a nationwide crackdown on the misuse of taxpayer money. A top federal prosecutor criticized California Gov. Gavin Newsom over a lack of oversight, branding him the "king of fraud."

"California has spent $24 billion in the last five years on homelessness, and no one can account for where that money has really gone," First Assistant U.S. Attorney for the Central District of California Bill Essayli said Thursday on "Fox & Friends."

In April, Essayli launched a task force to investigate corruption in California, with a focus on homeless services. The task force has already resulted in federal charges against two men accused of using real estate projects to exploit the state’s homelessness system for personal profit.

Essayli said those cases, which involve millions of dollars in alleged fraud, are only the "tip of the iceberg."

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"We already charged millions of dollars in fraud," he said.

"I can tell you more charges are coming, probably as soon as this month."

He accused Newsom and California’s Democratic leadership of allowing fraud to continue in state-run programs with little oversight or accountability.

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The scrutiny of California comes as other Democrat-led states face similar federal probes of benefits programs. In Minnesota, federal authorities are investigating allegations of widespread fraud involving childcare and other social services.

President Donald Trump weighed in on Truth Social, suggesting California could be "more corrupt" than Minnesota.

"The Fraud investigation of California has begun," he wrote on Tuesday. 

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Newsom’s press office pushed back against the accusations, writing on X that the governor has "blocked over $125 BILLION in fraud, arrested criminal parasites leaching off of taxpayers, and protected taxpayers from the exact kind of scam artist Trump celebrates, excuses, and pardons."

Vice President JD Vance has also criticized California’s welfare policies, accusing the state of providing benefits regardless of immigration status. Speaking to Fox News’ Jesse Watters, Vance said California openly advertises using taxpayer funds to provide Medicaid to illegal immigrants.

"California, more than almost any other state, has been so glaring and obvious about the fact that they're giving welfare benefits to illegal aliens," said Vance.

"They're getting rich off of the generosity of the American taxpayer. The political corruption that enables it has got to stop," he added.