California
Billionaire developer Rick Caruso will not run for L.A. mayor or California governor
Billionaire developer Rick Caruso will not run for Los Angeles mayor or California governor, after months of speculation that he would seek one of the two posts.
Caruso, who had been teasing a possible run for months, made his decision Friday, saying it came after “many heartfelt conversations” with his family.
“Though my name will not be on a ballot, my work continues,” Caruso said on X. “Public service does not require a title. It is, and always will be, my calling.”
Caruso’s plans were the talk of political circles for many months. Recently, he seemed to confirm that he would seek one of the two positions.
When asked by a reporter on Jan. 7 if it was possible he would not run for any position, Caruso responded: “That option is pretty much off the table now.”
Caruso said he will focus on his nonprofit, Steadfast LA, which brings industry leaders together to help with the Palisades fire recovery.
The 66-year-old developer behind popular L.A. malls like the Grove and the Americana at Brand spent $100 million of his own fortune against Karen Bass in 2022, outspending her 11 to 1 in his failed bid. But Bass beat him by nearly 10 percentage points.
Caruso served as president of the L.A. Police Commission in the 2000s and helped the city hire William Bratton as police chief. He was appointed to the Department of Water and Power board in 1984, at age 26 — the youngest commissioner in city history at the time.
Caruso has steadily critiqued the mayor online and in public appearances since 2022, seemingly honing and refining his argument for voters to reject the incumbent, whom he has described as incompetent.
“Her record is so bad,” Caruso said at a town hall he hosted at the Americana on Nov. 3.
Caruso’s decision not to run for mayor solidifies the 2026 field against Bass. Former Los Angeles Unified School District Superintendent Austin Beutner is running a moderate campaign, with arguments about Bass’ response to the Palisades fire and quality of life concerns that are similar to Caruso’s. The developer’s entry could have thrown a wrench into Beutner’s campaign.
Bass also faces a challenge from her left with Rae Huang, a community organizer and reverend, announcing a run for mayor in November.
Most recently, the entry of former reality star and Palisades fire victim Spencer Pratt has added new intrigue to the race.
Bass’ campaign declined to comment on Caruso’s decision.
As for governor, some voters in deep blue pockets of the state may have rejected Caruso, a former Republican who registered as a Democrat in 2022 and has faced questions over his past party registration.
Still, the developer, who has made public safety and quality of life issues his main talking points, might have attracted California voters unhappy with the current crop of gubernatorial candidates.
No single candidate has dominated the field, while some potential contenders, including Sen. Alex Padilla and Atty. Gen. Rob Bonta, have announced they’re not running.
As he weighed a bid for governor in the last year, Caruso traveled multiple times to Sacramento and around the state to meet with labor leaders, community groups and politicians.
“My guess is he did polling and he did not see a path forward,” said Sara Sadhwani, a professor of politics at Pomona College.
“Had he jumped into either race and lost, it would have made the prospects of elected office even further away,” she said.
California
A fast-growing wildfire in windy Southern California triggers evacuations
RIVERSIDE, Calif. — A smoky and fast-growing wildfire Friday in windy Southern California has prompted multiple evacuation orders and warnings.
The Springs Fire broke out at around 11 a.m. Friday and by the evening had grown to about 5.47 square miles (14.17 square kilometers), with fire crews starting to contain it. The cause of the fire east of Moreno Valley in Riverside County is under investigation. It was not immediately known how many households are under evacuation warnings or orders.
The fire was burning in a populated — but not densely so — unincorporated part of Riverside County, in a recreational area near the city of Moreno Valley, which has a population of roughly 200,000. The city is 10 miles (16 kilometers) southeast of Riverside and 64 miles (103 kilometers) east of Los Angeles.
“It’s windy out there,” said Maggie Cline De La Rosa, a public information officer for the California Department of Forestry and Fire Protection in Riverside County.
Alex Izaguirre, a spokesperson for the Cal Fire Riverside County, said the wind is “spreading the smoke,” prompting concerned calls from residents in neighboring cities who can see and smell the smoke.
The National Weather Service issued a wind advisory for San Bernardino and Riverside County valleys through Saturday afternoon, with gusts of up to 50 mph (80 kph) expected.
“Tree limbs could be blown down and a few power outages may result,” the advisory read.
California
Doctors, nurses arrested in Southern California health care fraud investigation
LOS ANGELES — The U.S. Department of Justice on Thursday announced what they called a major health care fraud takedown throughout Southern California, which included the arrest of doctors and nurses.
First Assistant U.S. Attorney Bill Essayli was joined during a press conference by several law enforcement agencies including the FBI, and Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services.
They said they served a series of search and arrest warrants throughout the region, from Covina to Lakewood in Los Angeles County. Eight people were arrested and more than a dozen are being charged for suspected health fraud.
They also mentioned fraudulent hospice care.
“These defendants recruited beneficiaries who were not terminally ill, and paid them to pose as patients receiving hospice care. Medicare then paid millions of dollars – hundreds of millions of dollars – on false and fraudulent claims submitted by fraudsters,” said Essayli.
Among those arrested were a Covina couple. Prosecutors said 66-year-old psychologist Gladwin Gill and his wife, Amelou Gill, a registered nurse, operated a fraudulent hospice business out of Glendale.
“This particular hospice submitted more than $5.2 million in fraudulent claims, and Medicare actually paid out more than $4 million,” Essayli said.
Gill’s attorney told our sister station, ABC7 Eyewitness News in Los Angeles, he denies the allegations and looks forward to his day in court.
Oz announced a broader review of hospice providers in the state.
“We’re going to review every single hospice in California to make sure that they’re all appropriate, and we hope to do that expeditiously. We’ll do it this year,” Oz said.
During the news conference, federal authorities were questioned about a video California Gov. Gavin Newsom said in January his office was reviewing. In that video, Oz, who is Turkish American, was shown standing in front of an Armenian-owned bakery in Van Nuys while alleging widespread fraud in the area.
Essayli confirmed that none of the defendants named Thursday were connected to that video. Oz responded to outcry that his accusations, which the business owner denounced as false, were discriminatory.
“I was stating the facts as they’ve been explained to me, and we have a lot of evidence of where the fraud is, just looking at the numbers,” Oz said.
Oz did not provide any evidence against a specific business in connection to that video. He suggested that half of Los Angeles County hospice care facilities are fraudulent, pointing to survival percentages as evidence.
“World experts at CMS say if you’ve got 100% or near survival, certainly if you’ve got a survival over 50% for population that’s supposed to have passed in six months, you’ve got a problem,” he said.
Newsom responded to accusations that California had not done enough to address hospice fraud, saying in part, “The Trump Administration – home to the biggest fraudsters on Earth – is trying to blame California for issues with THEIR federal programs.”
His press office said the state has taken action for years, including suspending more than 280 licenses and banning new ones.
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California
California law allowing people to cook, sell food from homes getting statewide push
A home-based food movement has been heating up in California, with home cooks turning their beloved family recipes into small businesses.
When most people get laid off, they update their résumés. James Houlahan preheated his oven.
“It’s pretty brutal, and since nobody’s hiring, I just figured I need to make a job for myself,” he said.
So the San Francisco Bay Area resident went back to a family recipe and decided to take a risk, with a whisk. He started making pavlovas, a light, meringue-based Australian dessert, crisp on the outside and soft in the middle.
“It’s something my mom and I always joked about whenever we’d bring a pav to a party, this thing kills,” Houlahan said. “So we figured, someone’s gotta make a business out of this.”
So he did, out of his own kitchen in Alameda.
And that’s not a loophole. A 2019 law called MEHKO, or Microenterprise Home Kitchen Operation, allows people to cook and sell food right out of their homes. Since then, more than 1,000 of these home kitchens have opened across California, operating under a growing but still patchwork system.
There are rules: food must be made from scratch and sold the same day. Not every county is on board, but there is now a push to expand it statewide.
Roya Bagheri, the executive director of The Cook Alliance, the nonprofit behind MEHKO, said the law is gaining momentum across the country as other states consider their own versions.
“The cost of getting something like a food truck or a brick and mortar restaurant is so high, this creates an access to enter the food industry,” she said.
A study by the group showed more than a third of home kitchen operators have used MEHKO as a stepping stone into something bigger.
But for some, the law is still a little undercooked. Jot Condie, president and CEO of the California Restaurant Association, warned that some counties may not have the resources to take it on.
“If they don’t have the budget, there may not be a rigorous inspection procedure, and that is a huge concern for us,” Condie said.
As for Houlahan, he’s betting on his own kitchen and his mother’s name: Marianne’s Pavlovas. And his customers, like Flora Tso, are already sold.
“Nowadays it just gives us more choice,” she said.
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