{"id":2567467,"date":"2026-02-07T15:19:02","date_gmt":"2026-02-07T20:19:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-admin-discovers-staggering-billions-stolen-in-suspected-california-small-business-fraud\/"},"modified":"2026-02-07T15:21:27","modified_gmt":"2026-02-07T20:21:27","slug":"trump-admin-discovers-staggering-billions-stolen-in-suspected-california-small-business-fraud","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-admin-discovers-staggering-billions-stolen-in-suspected-california-small-business-fraud\/","title":{"rendered":"Trump Admin Discovers &#8216;Staggering&#8217; Billions Stolen in Suspected California Small Business Fraud"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftrump-admin-discovers-staggering-billions-stolen-in-suspected-california-small-business-fraud%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2567467&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-goes-motionless-at-swanky-fundraiser-and-gets-led-offstage-by-obama-white-house-responds\/\" title=\"Biden Becomes Unresponsive at High-End Fundraiser, Escorted Offstage by Obama - White House Issues Statement\">article discusses allegations<\/a> of substantial fraud in COVID-19 relief programs and the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-trade-wars-give-democrats-whiplash-in-messaging-battle-washington-examiner\/\" title=\"Trump trade wars give Democrats whiplash in messaging battle - Washington Examiner\">political fallout surrounding<\/a> it. It claims that California could see a major crackdown, with about 110,000 borrowers suspended and up to around $9 billion in suspected fraud linked to the Paycheck Protection Program and Economic Injury Disaster Loans. A quote attributed to SBA Administrator Kelly Loeffler, cited via Fox News, frames the crackdown as the largest surge against pandemic-relief fraud and accuses the Biden administration of tolerating corruption for years. The piece explains the purposes of PPP and EIDL as relief for small businesses during the pandemic.<\/p>\n<p>The narrative then shifts to Minnesota politics, recounting YouTuber Nick Shirley\u2019s investigation into alleged daycare schemes that <a href=\"https:\/\/amzn.to\/3YuVZYV\" >purportedly exploited pandemic funds<\/a>, which led Gov. Tim Walz to announce he would not seek reelection and would step away from public service. It contrasts this with California Gov. Gavin Newsom, suggesting he has stronger potential for national office, with Polymarket placing him high among likely presidential contenders. The article mentions Shirley\u2019s social-media activity and embeds a Twitter post, framing Newsom as facing scrutiny alongside Shirley and the SBA.<\/p>\n<p>the piece blends reporting on alleged fraud in federal relief programs with speculative politics about California and Minnesota leadership and potential 2028 presidential prospects, wrapped in an online, ad-supported article format.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><script>console.log(\"ad slot (IC4)\")<\/script><\/p>\n<p>California seems poised to become the next Minnesota after the Trump administration suspects billions have been taken fraudulently there.<\/p>\n<p>Over 110,000 borrowers in the state have had suspensions in federal funding after $8.6 billion is suspected to have been improperly received.<\/p>\n<p>&ldquo;We have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud,&rdquo; The federal Small Business Administration Administrator Kelly Loeffler said Friday, according to<a href=\"https:\/\/www.foxnews.com\/politics\/trump-admin-uncovers-staggering-8-6-billion-suspected-california-small-business-fraud\" target=\"_blank\" rel=\"noopener\"> Fox News.<\/a><\/p>\n<p>&ldquo;This staggering number represents the most significant crack-down on those who defrauded pandemic programs, and it illuminates the scale of corruption that the Biden Administration tolerated for years.&rdquo;<\/p>\n<p>The money received came through the Paycheck Protection Program and Economic Injury Disaster Loans.<\/p>\n<p> <script type=\"text\/javascript\"> \t\t\tif ( getCookie( \"ff_subbed\" ) ) { \t\t\t\tdocument.getElementById(\"stnvideo\").remove() \t\t\t} else { \t\t\t\tdocument.addEventListener(\"DOMContentLoaded\", function() { \t\t\t\t\tfunction loadScript(src) { \t\t\t\t\t\tconst script=document.createElement(\"script\"); \t\t\t\t\t\tscript.src=src; \t\t\t\t\t\tscript.async=true; \t\t\t\t\t\tdocument.body.appendChild(script); \t\t\t\t\t} \t\t\t\t\tfunction findPreviousParagraph(selector, x) { \t\t\t\t\t\tconst targetElement=document.querySelector(selector); \t\t\t\t\t\tif (!targetElement) { \t\t\t\t\t\t\tconsole.warn(\"Target element not found.\"); \t\t\t\t\t\t\treturn null; \t\t\t\t\t\t}  \t\t\t\t\t\t\/\/ Get all <\/p>\n<p> elements in order as they appear in the document \t\t\t\t\t\tlet paragraphs=Array.from(document.querySelectorAll(\"p\"));  \t\t\t\t\t\t\/\/ Find the index of the last <\/p>\n<p> before the target element \t\t\t\t\t\tlet targetIndex=paragraphs.findIndex(p=> p.compareDocumentPosition(targetElement) & Node.DOCUMENT_POSITION_PRECEDING);  \t\t\t\t\t\tif (targetIndex===-1 || targetIndex <x) { \t\t\t\t\t\t\tconsole.warn(\"Not enough paragraphs before the target element.\"); \t\t\t\t\t\t\treturn null; \t\t\t\t\t\t}  \t\t\t\t\t\treturn paragraphs[targetIndex - x]; \t\t\t\t\t}  \t\t\t\t\t\/\/ Set up IntersectionObserver \t\t\t\t\tfunction observeElement(element) { \t\t\t\t\t\tif (!element) return;  \t\t\t\t\t\tconst observer=new IntersectionObserver( \t\t\t\t\t\t\t(entries)=> { \t\t\t\t\t\t\t\tentries.forEach(entry=> { \t\t\t\t\t\t\t\t\tif (entry.isIntersecting) { \t\t\t\t\t\t\t\t\t\tconsole.log(\"Paragraph is now visible:\", entry.target.textContent.trim()); \t\t\t\t\t\t\t\t\t\tloadScript(\"https:\/\/embed.sendtonews.com\/player3\/embedcode.js?fk=s28Az7AY\"); \t\t\t\t\t\t\t\t\t\tobserver.disconnect(); \t\t\t\t\t\t\t\t\t} \t\t\t\t\t\t\t\t}); \t\t\t\t\t\t\t}, \t\t\t\t\t\t\t{ threshold: 0.5 } \/\/ Adjust threshold as needed \t\t\t\t\t\t);  \t\t\t\t\t\tobserver.observe(element); \t\t\t\t\t}  \t\t\t\t\t\/\/ Find the 1st paragraph before #stnvideo and observe it \t\t\t\t\tlet paragraphToObserve=findPreviousParagraph(\"#stnvideo\", 2); \t\t\t\t\tobserveElement(paragraphToObserve); \t\t\t\t}); \t\t\t} \t\t<\/script> <\/p>\n<p>PPP monies were a coronavirus relief effort for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cuomo-to-partially-reopen-indoor-dining-in-nyc-for-valentines-day-if-positivity-rates-hold\/\" title=\"Cuomo To Partially Reopen Indoor Dining In NYC For Valentine\u2019s Day, \u2018If Positivity Rates Hold\u2019\">small business owners<\/a> to keep employees on payroll.<\/p>\n<p>EIDL serves a similar purpose through the SBA to help with troubles by loaning money during disasters which also relates back to the pandemic.<\/p>\n<p>In other words, according to the SBA, over one hundred thousand people possibly received billions in money they did not need while millions of Americans saw their livelihoods destroyed by COVID-era restrictions including forced vaccinations and economic shutdowns.<\/p>\n<p>California is not quite Minnesota, yet. Per Fox, that fraud could total around $9 billion.<\/p>\n<p>Minnesota Democratic Gov. Tim Walz clearly felt the pressure mounting in his own fraud controversy.<\/p>\n<p>After YouTuber Nick Shirley investigated alleged &ldquo;daycare&rdquo; schemes in his state that appears to involved daycares acting as fronts to steal money, Walz abruptly announced he would not seek reelection.<\/p>\n<p>On Jan. 28, Walz went a step further. According to<a href=\"https:\/\/www.cbsnews.com\/minnesota\/news\/gov-walz-says-he-will-never-run-for-an-elected-office-again-once-term-ends\/\" target=\"_blank\" rel=\"noopener\"> CBS News<\/a>, he stated his intention to bow out of public service completely.<\/p>\n<p>There&rsquo;s a distinction in the leadership in Minnesota compared to California.<\/p>\n<p>Walz would never come close to being a viable candidate on his own for the Democratic ticket, California Gov. Gavin Newsom is another story.<\/p>\n<p><a href=\"https:\/\/polymarket.com\/event\/presidential-election-winner-2028\" target=\"_blank\" rel=\"noopener\">Polymarket<\/a> is only one estimate of likely candidates, but the site puts Newsom in second for the presidency behind Vice President and likely Republican candidate, J.D. Vance.<\/p>\n<p>Newsom has more to lose than Walz considering his aspirations.<\/p>\n<p>As of last Friday, Nick Shirley is in California for his own investigation, announcing the news via social media platform X.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Hello California I&rsquo;ve arrived <a href=\"https:\/\/t.co\/lqYxagMoDa\">pic.twitter.com\/lqYxagMoDa<\/a><\/p>\n<p>&mdash; Nick shirley (@nickshirleyy) <a href=\"https:\/\/twitter.com\/nickshirleyy\/status\/2017705413681217560?\">January 31, 2026<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Newsom has Shirley and the SBA at his doorstep.<\/p>\n<p>In a matter of months, Walz political career came to an end after a few videos were posted online from Shirley. Are we going to see the same with Newsom, dashing his 2028 hopes?<\/p>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\"> \t\t\t \t<\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> \t\t\t\t\t\t<label>* Name<\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"name\" required> \t\t\t\t\t<\/div>\n<div class=\"sc--field\"> \t\t\t\t\t\t<label>* <\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"\" required> \t\t\t\t\t<\/div>\n<p> \t\t\t\t\t<label>* Message<\/label> \t\t\t\t\t<br \/> \t\t\t\t\t<textarea name=\"message\" required><\/textarea> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"required-message\" style=\"display: none; padding-bottom: 15px;\">* All fields are required.<\/div>\n<p> \t\t\t\t\t<input type=\"submit\" value=\"Submit\" onclick=\"event.preventDefault(); firefly_sc();\"> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"firefly-sc-confirm\" style=\"display: none;\">Success!<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<p> \t\t<script> \t\t\tfunction firefly_sc() { \t\t\t\tif( typeof window.captchaPublicKey==typeof undefined ){ \t\t\t\t\tconsole.error('window.captchaPublicKey is not defined'); \t\t\t\t} \t\t\t\tgrecaptcha.execute( window.captchaPublicKey, { action: 'submit_correction' } ).then( function( token ) { \t\t\t\t\tvar opts={ \t\t\t\t\t\taction:    'firefly_sc_submit', \t\t\t\t\t\tname:      document.querySelector( '.entry-submit-correction [name=\"name\"]' ).value, \t\t\t\t\t\t:     document.querySelector( '.entry-submit-correction [name=\"\"]' ).value, \t\t\t\t\t\tmessage:   document.querySelector( '.entry-submit-correction [name=\"message\"]' ).value, \t\t\t\t\t\tpost_id:   firefly_post_id, \t\t\t\t\t\tcap_token: token \t\t\t\t\t}  \t\t\t\t\tvar inputs=[ 'name', '', 'message' ];  \t\t\t\t\tfor( var i=0; i <inputs.length; i++ ) if( ! ( opts[inputs[i]]=document.querySelector( '.entry-submit-correction [name=\"' + inputs[i] + '\"]' ).value ) ) { \t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .required-message' ).style.display='block'; \t\t\t\t\t\treturn; \t\t\t\t\t}  \t\t\t\t\tdocument.querySelector( '.entry-submit-correction input[type=\"submit\"]' ).style.display='none'; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).src=firefly_loading_gif_url; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='inline-block';  \t\t\t\t\tconsole.log( 'ma subbing' );  \t\t\t\t\tif( firefly_post_id ) opts['post_id']=firefly_post_id;  \t\t\t\t\t\/* Send the data using post with element id name and name2*\/ \t\t\t\t\tvar posting=jQuery.post( firefly_ajax_url, opts );  \t\t\t\t\t\/* Alerts the results *\/ \t\t\t\t\tposting.done( function( response ) { \t\t\t\t\t\tif( response.success ) { \t\t\t\t\t\t\tconsole.log( response.data ); \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='none'; \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-confirm' ).style.display='block';  \t\t\t\t\t\t\tdataLayer.push( { 'event': 'submit-correction' } ); \t\t\t\t\t\t} \t\t\t\t\t}); \t\t\t\t}); \t\t\t} \t\t<\/script> \t     \t\t\t\t\t\t     \t\t\t\t\t<\/div>\n<p style=\"border: 1px solid #f5f5f5; padding: 16px;\">Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. <a href=\"https:\/\/www.westernjournal.com\/advertise-us\/?wj_source=article\">Advertise Today<\/a>.<\/p>\n<p><script>console.log(\"ad slot (BA1)\")<\/script> \t\t<\/p>\n<div class=\"ff-fancy-header-container\"> \t\t\t \t<\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a paraphrase of the provided text, focusing on the main points and stripping out the code chaos while preserving the claims and context as stated.<\/p>\n<p>&#8211; The piece argues that California may follow Minnesota\u2019s lead in cracking down on fraud tied to pandemic relief programs. It claims that more than 110,000 California borrowers have faced suspensions in federal funding after about $8.6 billion is suspected to have been obtained fraudulently. A quote attributed to the federal Small Business Administration Administrator Kelly Loeffler says, \u201cWe have suspended nearly 112,000 borrowers tied to at least $9 billion in suspected fraud,\u201d describing it as the most significant crackdown on pandemic-relief fraud and accusing the Biden Administration of tolerating corruption for years. The fraud allegations concern money disbursed through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).<\/p>\n<p>&#8211; The text includes discussions of dynamic webpage scripts and ad\/video loading logic that appear to gate or track content (e.g., a cookie check that may remove a video element, and a script loader that fires when certain conditions are met). It also references a mechanism meant to load a news-player script when a paragraph becomes visible on screen.<\/p>\n<p>&#8211; Explanations are given for PPP and EIDL: PPP was designed to keep employers on payroll during the pandemic, while EIDL provides disaster-related loans through the SBA to help businesses during crises. The article contends that, according to the SBA, over a hundred thousand people may have received billions they didn\u2019t need, at a time when many Americans faced livelihood losses due to COVID-era restrictions, including vaccine mandates and economic shutdowns.<\/p>\n<p>&#8211; Minnesota comparison: The piece notes Minnesota Governor Tim Walz faced fraud-related pressure after a YouTuber investigated alleged daycare-finance schemes in the state. The investigation allegedly suggested daycares were used as fronts to steal funds, and Walz subsequently announced he would not seek reelection. CBS News is cited as saying Walz later stated he intended to step away from public service entirely.<\/p>\n<p>&#8211; Leadership contrast: The article contrasts Minnesota\u2019s political leadership with California\u2019s. It suggests Walz would have little chance of mounting a statewide Democratic presidential bid, while California Governor Gavin Newsom is portrayed as a more consequential figure in this context. Polymarket is mentioned as giving Newsom a favorable standing in potential presidential futures, second only to Vice President and likely Republican candidate JD Vance. The piece notes Nick Shirley\u2019s online posts that tie Newsom and the SBA to contemporary investigations, with Shirley\u2019s reporting purportedly affecting Newsom\u2019s political trajectory.<\/p>\n<p>&#8211; The narrative references Nick Shirley\u2019s social-media activity (a post announcing his arrival in California for his investigation) and speculates about whether Newsom\u2019s 2028 ambitions might be derailed in a similar fashion to Walz\u2019s career.<\/p>\n<p>&#8211; The text also includes a form-like section (name, message, etc.) typical of reader corrections or submissions, followed by a \u201cSuccess!\u201d indicator, and a technical section describing a captcha-based submission flow.<\/p>\n<p>&#8211; A concluding fragment repeats the notion that California appears poised to become the next Minnesota in pursuing fraud allegations tied to trillions in fraud claims, citing roughly $9 billion in suspected fraud.<\/p>\n<p>If you\u2019d like, I can provide:<br \/>\n&#8211; A shorter, one-paragraph summary.<br \/>\n&#8211; A version that preserves direct quotes.<br \/>\n&#8211; A neutral fact-check-style summary that flags unverified or contested claims<\/p>\n","protected":false},"author":1,"featured_media":2567469,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2026\/02\/Michael-Featured-Image-640.jpg","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[4045,6909,8327,73267,46512],"class_list":["post-2567467","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-california","tag-fraud","tag-investigations","tag-smallbusiness","tag-trumpadministration"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2026\/02\/Michael-Featured-Image-640.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2567467","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2567467"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2567467\/revisions"}],"predecessor-version":[{"id":2567472,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2567467\/revisions\/2567472"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2567469"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2567467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2567467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2567467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}