California
California recommends changes to leasing properties under freeways after major fire
LOS ANGELES — Three months after an arson fire at a state-leased storage space shut down a major Los Angeles freeway, California transportation officials are recommending changes to the leasing program that would explicitly ban storage of hazardous materials like wood pallets and gasoline and provide more scrutiny of people who want to rent out the properties.
The state should require any individual who wants to lease one of the 600 available state-owned properties under roadways to attest they haven’t entered into bankruptcy in the past 10 years and are not embroiled in legal actions related to other properties, the head of the California Department of Transportation, or Caltrans, said Tuesday in recommendations to Gov. Gavin Newsom.
The man who leased the property under Interstate 10 that caught fire had filed for bankruptcy twice since 2016 and was the target of several legal filings related to other sites he managed, Associated Press reporting found. The state is fighting to evict Ahmad Anthony Nowaid and scores of tenants subleasing through him in violation of his contracts with Caltrans, according to court records.
Nowaid and his attorney haven’t responded to multiple calls and emails seeking comment.
The Nov. 11 blaze quickly spread, fueled by wooden pallets, supplies of hand sanitizer and other flammable materials stored there in violation of the lease contract. Officials said it was a case of arson. No one has been arrested.
Caltrans director Tony Tavares wrote in a memo Tuesday that his agency had completed a review of all 600 properties around and under roadways that the state leases to firms and individuals. The agency recommended the state explicitly prohibit any storage of flammable or hazardous items and define more clearly what constitutes dangerous materials, he said.
The overhauls are meant to “ensure the lease agreements governing each property are up-to-date and reflective of potential risks, streamline enforcement of lease terms and allow Caltrans to more quickly address risks,” Tavares wrote.
The governor’s office didn’t immediately respond to an email Wednesday seeking comment on the changes Caltrans is proposing.
Since the fire, Caltrans has inspected 47 sites, most of which were identified as potentially high-risk and some that have more than one parcel. Of these parcels, more than three quarters failed their inspections. The reasons for failure ranged from the presence of combustible materials to faulty wiring and more.
Some inspections found “several issues presenting fire or safety risks” and other potential lease violations, Tuesday’s memo said. One tenant was keeping propane tanks, others were storing vehicles and several more had improperly stored lumber or wooden pallets, inspectors found.
Among materials that should be prohibited: “Oil, gasoline, lumber, pallets, wood, wood chips, landscaping materials, non-operable vehicles, plastic piping/tubing, tires, paper/paper products, fabrics, batteries, and chemicals/cleaning supplies in industrial quantity,” Caltrans said.
Following the inferno, Newsom ordered a review of all the so-called “airspace” sites that Caltrans has leased around roadways. The program dates back to the 1960s and most of the properties have been used for parking lots, cellphone towers, open storage and warehouses. The lots range anywhere from a few hundred to thousands of square feet, and they are concentrated in Los Angeles and the San Francisco Bay area.
The airspace leases have brought in more than $170 million for public transportation over the past five years.
The agency said its review of airspace leases is ongoing and “will take into account both the benefits and risks of the program, as well as explore potential program improvements to mitigate risks.”
___
Associated Press data reporter Kavish Harjai in Los Angeles contributed.
Redwood Valley, Calif. — A 5.6 magnitude earthquake shook Northern California on Wednesday morning, according to the U.S. Geological Survey.
The quake was centered 7 miles north of Redwood Valley in Mendocino County, north of Ukiah, and east of Highway 101. It had a depth of 5.0 miles.
A ShakeAlert notification went off on many people’s phones moments before the earthquake hit at 8:10 a.m., initially forecasted as a 6.1 magnitude quake by the U.S. Geological Survey (USGS) and downgraded moments later.
People across Northern California felt the quake. Reports came in from as far away as Eureka, Redding, Sacramento, and the Bay Area. Most people reported light to moderate rolling and shaking.
Since the initial quake, several aftershocks have hit the same area. Three smaller quakes between 2.6-2.7 magnitude were detected in the same area between 8:17 a.m. and 9:06 a.m., and are expected to continue.
So far, there have not been any reports of major damage or injuries.
—
BE THE FIRST TO COMMENT
Report a correction or typo.
California
DOJ charges 10 Southern California defendants in largest federal healthcare fraud crackdown in US history
Laura Ingraham: Fraudsters beware!
The Department of Justice announces the largest healthcare fraud takedown in U.S. history, charging 455 defendants across 45 states. They allegedly stole $6.5 billion from Medicare and Medicaid through wound care schemes and other fraudulent claims. Some funds were used for luxury homes and vehicles like a $135,000 Maserati.
NEWYou can now listen to Fox News articles!
Federal authorities on Tuesday charged 10 Southern California defendants in a series of healthcare fraud schemes, including one case involving nearly $270 million in fraudulent Medi-Cal claims and another that allegedly defrauded Medicare out of approximately $27 million.
The charges were part of the Justice Department’s broader “2026 National Health Care Fraud Takedown,” which resulted in charges against 455 defendants nationwide in schemes involving more than $6.5 billion in alleged fraud.
Acting Attorney General Todd Blanche described the operation as “the greatest combined federal and state effort in combating healthcare fraud in history.”
“Fraudsters can no longer rip off American taxpayers,” Blanche said during a news conference announcing the initiative. “If you seek to harm or cheat Americans, we will find you, seize any assets and prosecute you to the fullest extent of the law.”
FBI ADDS 2 FUGITIVES TO ‘MOST WANTED FRAUDSTERS’ LIST AMID HISTORIC $6.5B HEALTHCARE TAKEDOWN: PATEL
Acting Attorney General Todd Blanche speaks during a news conference announcing what federal officials described as the largest healthcare fraud takedown in U.S. history, resulting in charges against 455 defendants nationwide. (Ken Cedeno / AFP via Getty Images)
In the Central District of California, federal prosecutors brought criminal charges against 10 defendants accused of defrauding government-funded healthcare programs or abusing their positions as medical professionals to illegally prescribe controlled substances.
The U.S. Attorney’s Office for the Central District of California said five individuals were arrested in the greater Los Angeles area for allegedly participating in a scheme that involved submitting nearly $270 million in fraudulent claims to Medi-Cal for expensive prescription drugs.
Among those charged was Christina Mareik, 61, also known as Christina Marie Sanchez Hernandez, of Whittier.
HOSPICE FRAUD USES STOLEN IDENTITIES FOR FAKE PATIENTS
The Justice Department announced charges against 10 Southern California defendants in connection with multiple healthcare fraud schemes. (Department of Justice)
Prosecutors allege Mareik helped facilitate fraudulent prescriptions that generated nearly $270 million in claims to Medi-Cal, which ultimately paid out more than $178 million.
According to prosecutors, the claims involved expensive drugs containing low-cost generic ingredients that were either not medically necessary or were never provided to the purported recipients.
Authorities said Mareik also sent thousands of fraudulent prescriptions to a co-conspirator and caused the submission of fraudulent prescriptions under her own name.
LOS ANGELES HOSPICE FRAUD REACHES BILLIONS AS MEDICARE PROVIDERS SCAM FEDERAL SYSTEM WITH FAKE COMPANIES
Federal prosecutors allege Southern California defendants participated in schemes that defrauded Medicare and Medi-Cal of hundreds of millions of dollars. (Department of Justice)
Mareik was arrested June 17 and charged with healthcare fraud.
The charges also include a San Fernando Valley man accused of operating hospice care companies that fraudulently billed Medicare approximately $27 million, according to prosecutors.
Prosecutors also charged Oren David Shachar, 59, of Van Nuys; Abraham Shin, 66, of Corona; and Jeannie Choi, 57, of Torrance.
The three defendants face a 16-count indictment alleging they conspired to defraud Medicare out of approximately $27 million.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
The charges include conspiracy to commit healthcare fraud, healthcare fraud, aggravated identity theft, monetary transactions involving criminally derived property exceeding $10,000, and violations of the Anti-Kickback Statute.
Fox News Digital’s Alexandra Koch contributed to this report.
The IPOs of SpaceX, OpenAI and Anthropic could deliver billions of dollars to California’s coffers.
We’ve seen this movie before.
In 2022, California recorded a nearly $100 billion surplus, saved just $10 billion in its rainy day fund and then spent the rest. Two years later, a $56 billion deficit loomed.
Now, with the state facing ongoing operating deficits of more than $10 billion, we’re back in familiar territory.
The coming IPO windfall is a rare second chance. But we’ll only benefit from it if we first fix the structural flaw that’s caused us to squander every previous boom — a budget reserve that isn’t built to hold what we put in it.
The stakes this time are higher than ever. The war in Iran raised recession risk, and the federal government is systematically dismantling the funding streams California has depended on for decades.
When Washington retreats, Sacramento has to choose: cut services, raise taxes or have enough saved to bridge the gap. Right now, we don’t have enough saved.
We’re not outside observers wringing our hands. We helped shape the fiscal architecture the state is now straining against, and we’re here to say: It needs to be rebuilt.
As California state controller, one of us campaigned alongside Gov. Arnold Schwarzenegger to pass Proposition 58 in 2004 — creating California’s first Budget Stabilization Account. The other authored the Assembly Constitutional Amendment that became Proposition 2 in 2014 — the stronger, harder-to-raid replacement that voters approved with 69% support.
California’s tax system is the envy of progressive states and the nightmare of budget directors. We tax the wealthy at high rates, capture enormous capital gains revenue in boom years and then discover — every single time — that the peak doesn’t last.
If California treats the IPO windfall from SpaceX, Anthropic and OpenAI as permanent revenue, our state would repeat exactly the mistake we made four years ago.
Gov. Gavin Newsom and Assemblymember Avelino Valencia have each proposed important reforms to strengthen the fund. First, they call for requiring the state to make deposits until the fund reaches 20% of the general fund total, rather than the current 10%. Second, they propose changing an arcane accounting rule that treats saving for future downturns as spending.
We see one additional opportunity to make the rainy day fund even stronger.
If we want a larger budget reserve, we have to do more than merely allow it — we need to require it. Proposition 58 taught us everything we need to know on this front: Between 2004 and 2014, with that proposition fund in place, only two deposits were made. If we want consistent deposits during the boom times, they can’t be optional.
These reforms should be a win-win for the California Legislature. A larger reserve is the most durable protection that public sector workers, social service recipients and education advocates have against the kind of emergency cuts that have repeatedly gutted programs during downturns.
It’s also the strongest argument against tax increases in a recession because you don’t need to raise taxes if you actually save during the booms.
Building a stronger rainy day fund isn’t the cautious choice. It’s the visionary one — the closest thing we have to investing in the next generation of Californians.
We built the last rainy day fund because we’d lived through the consequences of not having one. We’re making the same argument again, for the same reason except now the stakes are higher. This time, the federal backstop is weaker, and the next storm is closer than it looks.
Fix the fund this year. The next generation of Californians will thank us for it.
Mike Gatto served in the state Assembly between 2010 and 2016, and he authored the measure that created California’s current rainy day fund. Steve Westly served as state controller between 2003 and 2007, and he co-championed Proposition 58, California’s original rainy day fund. Westly chairs the 21st Century Alliance, a nonpartisan organization focused on solutions to the state’s most pressing challenges.
-
Sports6 minutes ago‘Super blessed’: Karim López makes NBA history as first Mexican-born first-round draft pick
-
World14 minutes agoWill the UK rejoin the European Union? MEPs debate Brexit on The Ring
-
News39 minutes ago
Federal judge bars Trump from implementing proof of citizenship requirement to vote
-
Los Angeles, Ca2 hours agoClue may identify SUV in Long Beach hit-and-run that left woman injured
-
Detroit, MI2 hours agoIlitch Companies creates gaming platform, expands beyond Detroit
-
San Francisco, CA3 hours agoFirst of its kind queer museum in San Francisco Chinatown amplifies Chinese LGBTQ artists
-
Dallas, TX3 hours agoThese children were sold for sex. Then the system failed them again
-
Miami, FL3 hours agoHard Rock Cafe lets Downtown Miami lease lapse after 30-plus years
