California Gov. Gavin Newsom was humiliated this week when confronted with a new investigation that found billions of dollars in state fraud – and again by Democratic Sen. John Fetterman when he tried to laugh his way out of the massive scandal.
Independent journalist and YouTuber Nick Shirley released a video Monday titled “I Investigated California’s Billion Dollar Fraud Crisis,” which reportedly found operators of daycare centers, hospices, and nursing homes across the state are openly operating as fraudulent shell companies, billing California taxpayers billions for nonexistent services. On X, Shirley claimed his investigation uncovered more than $170 million in fraud.
“We uncovered over $170,000,000 in fraud as these fraudsters live in luxury with no consequences,” Shirley posted. “Like it and share it, the fraud must STOP.”
Take a look –
In response, Newsom’s press office responded by posting an A.I. image of Shirley leering into a kindergarten doorway and asking a teacher, “Hey, can I see your kids?”
Nick Shirley, right now pic.twitter.com/vWrp34Dmfa
— Governor Newsom Press Office (@GovPressOffice) March 17, 2026
Shirley fired back directly.
“You do realize I’m trying to help America eliminate fraud and waste right?” he said in his reply. “No need to try and make me look like the bad guy for exposing fraud. People are over it. Start working for the people and not against them.”
The response went viral, racking up more than 190,000 likes and 20,000 shares. But the bigger blow came from within Newsom’s own party.
Fetterman of Pennsylvania, a political ally, called out the governor publicly during a Wednesday interview on the All-In podcast.
“Why can’t you celebrate any journalist or any activist doing that?” Fetterman asked. “And Governor Newsom put out a disgusting video implying that he’s a pedophile or he’s that… Why? That’s kind of a smear. You want to disagree, but to imply that someone in one of the most gross kinds of terms like that — it’s like, hey, shouldn’t we agree, eliminate all the waste?”
“You should be angry. Fraud can happen on both sides, but when it’s identified, I don’t care if it’s in a Democratic state. We should all just acknowledge maybe there is a problem here,” he said.
Shirley also did not hold back on Newsom during an appearance on Fox News.
“The governor of California is an enemy to the people of California,” Shirley said. “He’s literally working to support the fraudsters; meanwhile, he could be working to expose the fraud. I mean, how stupid do you have to be to say, ‘OK, let’s go after the guy who’s exposing the fraud, let’s not go after the fraudsters.'”
“These tax dollars don’t say right or left on them. They don’t say Republican or Democrat. Each tax dollar is a dollar for the American people and when they go in and steal these dollars from us, they’re not robbing the liberal Democrat in California, they’re robbing everyone.”
In December, Shirley went viral when he released a video exposing massive fraud at Minnesota daycare centers within the Somali community that were empty while receiving millions in government funding.
That video was viewed more than 138 million times and was shared by Vice President JD Vance and FBI Director Kash Patel. It prompted a major federal investigations and a freeze of all childcare payments in Minnesota by the Department of Health and Human Services.