A new California law is drawing criticism for its potential to protect individuals engaged in hospice fraud, a crime that victimizes seniors and costs taxpayers billions. The Stop Nick Shirley Act (AB 2624), signed by Governor Gavin Newsom, has been denounced by opponents as a measure that could shield fraudsters from public scrutiny.
The legislation, named by Republican Assemblyman Carl DeMaio after a journalist who exposed alleged fraud, allows civil lawsuits against those who publish images or videos of workers at organizations that claim to assist immigrant groups. It also permits potential fraudsters to remove their home addresses from public records by asserting harassment. Supporters of the bill, including Governor Newsom, state that it aims to protect privacy for immigration support service providers who have reportedly faced threats and intimidation following increased public attention.
However, critics argue that the law could have a chilling effect on investigations into fraudulent operations, similar to cases involving hospice fraud that have affected vulnerable seniors. One documented instance involved Linda Henry, a 71-year-old Long Beach resident who was allegedly enrolled in hospice care without her knowledge by fraudsters. This action reportedly led to the suspension of her Medicare coverage, preventing her from receiving necessary medical treatments unrelated to end-of-life care.
Federal authorities estimate that hospice fraud in Los Angeles County alone amounts to $3.5 billion. The New York Post notes that federal prosecutors have pursued multiple significant fraud cases in California this year, with figures like fraud czar J.D. Vance and Assistant U.S. Attorney Bill Essayli credited for their efforts to combat entrenched fraud in the state. In contrast, state officials, including Governor Newsom and Attorney General Rob Bonta, have been accused of downplaying or dismissing federal fraud probes.
Attorney General Bonta has previously characterized federal claims of California fraud as "reckless," "false," and "ridiculous." Governor Newsom, in response to news of federal investigations, has criticized former President Donald Trump rather than directly addressing the fraud allegations within the state. The article suggests that by signing AB 2624, Newsom and state legislators are appearing to side with potential fraudsters over the seniors they are accused of victimizing.