BONUS POD: Now Playing – The Case of California's Disappearing Billions

Podcast: Verdict with Ted Cruz
Host: Ben Ferguson (with commentary from other guests, including investigative journalist Nick Shirley)
Date: February 12, 2026

Episode Overview

This episode dives deep into alleged rampant fraud surrounding government funding in California, focusing primarily on money earmarked for homelessness programs and public projects. Drawing parallels to a high-profile fraud scandal in Minnesota, Ben Ferguson and his guests discuss new investigations, major whistleblower efforts, and the astronomical sums of taxpayer money reportedly lost or misappropriated in California. The episode spotlights investigative work by Nick Shirley, debates oversight failures, and offers listeners insight into broader problems of government accountability.

Key Discussion Points & Insights

1. California’s Exploding Fraud Crisis (04:22 – 12:20)

• Comparison to Minnesota:
  Minnesota's biggest case—one man fraudulently taking $23 million meant for the homeless—is used as a launching point. Ferguson asserts California’s fraud is even more "unbelievable" in scale.

  "If you thought the fraud that was found in Minnesota is bad, apparently we've seen nothing yet. Take a look at California and it's truly unbelievable what they're finding out there." – Ben Ferguson (03:19)

• Detailed Example – LA Homelessness Scandal:
  FOX correspondent Matt Finn reports on Alexander Sucher, who allegedly used $23 million intended to house and feed 6,600 homeless people to fund an opulent lifestyle, buying luxury cars, real estate, and more.

  "He was living the high life while the people suffering homeless on the streets with no shelter, no food... Prosecutors say Sucre was supposed to provide three nutritional meals a day to the homeless. But during one inspection, Suchor only had canned beans and ramen noodles..." – Matt Finn, FOX News (04:33 – 05:24)

• Extensive Fraud Ongoing:
  U.S. Attorney’s office is actively investigating at least 12 similar cases in California. There’s concern over lack of vetting and oversight in rapidly distributed funds.

  "California was pushing this money out quickly. A lot of money went out the door with frankly very little vetting, very little checks and balances and he's one of the individuals that got it." (06:11)

2. Nick Shirley’s Investigative Work & Whistleblowing (08:21 – 10:16)

• Nick Shirley’s Insights & Reform Suggestions:
  Nick Shirley (who exposed massive fraud in Minneapolis) is now sounding alarms in California, describing "massive fraud," particularly as homelessness and public spending grow.

  "Oh, there's massive fraud in California. I mean the homelessness has just increased as they receive more money. That's just one part of it... The fraud is like crazy in California and they have the highest taxes." – Nick Shirley (08:21)

• Quid Tam & Whistleblower Lawsuits:
  Shirley is encouraged to leverage qui tam laws (allowing individuals to sue on behalf of the state for fraud and share in any recovered funds). He acknowledges he's been contacted about this.

  "Yeah, I actually had somebody reach out to me the other day about it. So I'm going to actually hop on a phone call with that guy." – Nick Shirley (09:01)

• Crowdfunding and Tip Lines:
  Shirley, operating independently, shares how people can support his work or submit tips, primarily via social media.

  "Yeah, it's just Nick Shirley and if you go on X, I do have my tip section open. So if you would like to donate there, that gives them all the...Venmo, Cash app, crypto... you can all do it right there." – Nick Shirley (10:06)

3. Billions Unaccounted For: Hard Numbers (10:17 – 12:38)

• Astounding Sums Cited:

  • State Auditor Finds $70 Billion "Lost":
    Ferguson references reports from California’s Auditor about $70 billion in taxpayer funds lost with no accounting.

  • $24 Billion in Non-Existent Homelessness Programs:
    Money designated is "gone"—no results seen.

  • $18 Billion to Non-Existent High-Speed Rail:
    Funds allocated for rail projects with little to show.

  • $32 Billion in COVID-19 Relief Allegedly Stolen.

  • $2.5 Billion to SNAP (food assistance) fraud.

  • Billions for fire recovery projects with no tangible rebuilding.

    "State auditor in California found...70 billion in taxpayer funds that have been lost like they just disappeared. No accounting for them whatsoever. 24 billion... spent on non existent homelessness programs. That means someone stole $24 billion. 18 billion poured into non existent high speed rail... 32 billion for Covid relief funds that have been stolen. 2.5 billion... lost to snap fraud." – Ben Ferguson (10:50 – 11:35)

• Political Critique:

  • Governor Gavin Newsom is held responsible for this apparent "fraud capital of America" status, with claims that nonprofits and state-funded organizations are embezzling billions while oversight is absent.

    "California is the fraud capital of America and the taxpayer funded non profits there are embezzling our money by the billions and the governor is allowing it to happen." – Ben Ferguson (12:08)

Notable Quotes & Memorable Moments

• On the scale of fraud:

  "This is just the tip of the iceberg." – Ben Ferguson (06:30)

• On personal motivation:

  "I'm just going to be out here exposing all this waste, fraud and abuse... Like that's what I'm doing with my life now. I'm not afraid." – Ben Ferguson on Nick Shirley (10:17)

• On whistleblower potential:

  "Nick, you could become a billionaire here just with all the billions you've exposed." – Ben’s guest to Nick Shirley (09:22)

• On California’s rapid spending:

  "A lot of money went out the door with frankly very little vetting, very little checks and balances..." – Assistant U.S. Attorney quoted (06:17)

Important Timestamps

• 04:22 – 06:30: LA homelessness fraud story coverage (FOX News audio)
• 08:21 – 10:16: Nick Shirley discusses scale of California fraud and whistleblower actions
• 10:50 – 12:38: Ben Ferguson summarizes the "disappearing billions" – striking loss amounts and condemnation of oversight failures

Episode Tone & Style

The tone is urgent, incredulous, and combative—consistent with the "Verdict" brand’s conservative advocacy. Both Ben Ferguson and his guests stress outrage over government mismanagement and corruption, targeting California’s political leadership, and frame whistleblower efforts as heroic public service.

Takeaway

This episode presents a damning account of alleged systemic fraud in California’s use of taxpayer funds, using both anecdotal evidence and whistleblower accounts to illustrate deep oversight failures. For listeners, the takeaway is a call for vigilance, greater accountability, and support for investigative efforts to expose and prevent misuse of public resources.