DNYUZ
No Result
View All Result
DNYUZ
No Result
View All Result
DNYUZ
Home News

Billion-dollar busts shed light on LA’s dark homeless issues

October 24, 2026
in News
Billion-dollar busts shed light on LA’s dark homeless issues

The $2 billion medical fraud bust by federal investigators in California this week lifted the lid on one of the great scandals of the homelessness crisis.

Namely: Scam artists have been luring drug addicts to California from around the country to attend “rehab” facilities that don’t actually provide treatment.

The scammers bill insurance — private or public — until the policies’ coverage runs out. Then they shove the addicts out onto the street.

FBI agents arresting Hany Malek at his mansion in Tarzana, California.
FBI LA agents arrest Hany Malek at his mansion for medical fraud in Tarzana, California, Thursday, Oct. 22, 2026. Carlin Stiehl for CA Post

That was one of the horrific and corrupt schemes uncovered this week in the federal raids and indictments. But it has been going on for many years in California.

Already, in 2017, the local media had caught onto the fact that some local rehab centers were exploiting addicts to earn cash, without helping their patients.

Obamacare actually made the exploitation easier, because the local marketplace, Covered California, made it easy for people who have just arrived in the state to sign up for insurance.


Download The California Post App, follow us on social, and subscribe to our newsletters

California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedIn California Post Sports Facebook, Instagram, TikTok, YouTube, X California Post Opinion California Post Newsletters: Sign up here! California Post App: Download here! Home delivery: Sign up here!Page Six Hollywood: Sign up here!


That turned Southern California into the “Rehab Riviera.” Except there wasn’t a lot of rehab going on.

There are other reasons for the shocking rise of homelessness. And plenty of addicts have hit the streets in California without going through a phony rehab program first.

But the fact that this phenomenon has continued — almost in the open — for a decade or more is a disgrace.

United States Attorney for the Central District of California Bill Essayli speaks at a press conference at the old Los Angeles Federal Courthouse.
United States Attorney for the Central District of California Bill Essayli speaks at a press conference at the old Los Angeles Federal Courthouse after FBI LA arrested Hany Malek at his mansion for medical fraud in Los Angeles, Thursday, Oct. 22, 2026. Carlin Stiehl for CA Post

It points to the problem of a large welfare state. California creates extremely generous benefits, so it attracts poor people, who make use of them.

It also attracts crooks and fraudsters who learn to use the system to enrich themselves. And the more money the government spends, the more entrenched the problem becomes. 

Some of those arrested in the medical fraud bust are accused of luring addicts to California with gifts and promises of easy drugs, making their addiction worse.

The reason LA and California generally have struggled to reduce homelessness is that our leaders have been reluctant to address these problems.

FBI LA agents conduct a raid in Tarzana, California.
Some of those arrested in the medical fraud bust are accused of luring addicts to California with gifts and promises of easy drugs, making their addiction worse. Carlin Stiehl for CA Post

It’s easier to pretend the problem is just a lack of cheap housing, and to believe that throwing money at the problem will solve it. 

What we really need is courage — the courage to confront those who are making billons of dollars out of other people’s misery.

This week’s arrests cannot be the last. We need to uproot the fraud and corruption in the “Rehab Riviera” and stop the exploitation of addicts that keeps people on the streets.

The post Billion-dollar busts shed light on LA’s dark homeless issues appeared first on New York Post.

Glaring gap surfaces in Trump-ousted Kimberly Guilfoyle’s financial records: report
News

Glaring gap surfaces in Trump-ousted Kimberly Guilfoyle’s financial records: report

by Raw Story
October 24, 2026

A federal ethics filing shows President Donald Trump’s former ambassador to Greece Kimberly Guilfoyle reported big mortgage and boat loans ...

Read more
News

Lawrence McCutcheon, five-time Pro Bowl running back for Rams, dies at 76

October 24, 2026
News

Kate Gosselin’s former nanny claims she witnessed abuse of son Collin

October 24, 2026
News

Pentagon accused of sneaky dodge around judge’s order to restart wind projects: report

October 24, 2026
News

Ex-Long Island college professor allegedly raped female student on campus: cops

October 24, 2026
Jane Doe Can Remain Anonymous in Cornell Case, Judge Says

Jane Doe Can Remain Anonymous in Cornell Case, Judge Says

October 24, 2026
Arlington police release video from fatal shooting during 7-Eleven standoff

Arlington police release video from fatal shooting during 7-Eleven standoff

October 24, 2026
Global Oil Price Hits $117 a Barrel, Highest Since April

Global Oil Price Hits $116 a Barrel, Highest Since April

October 24, 2026

DNYUZ © 2026

No Result
View All Result

DNYUZ © 2026