The guy didn’t even flinch. Didn’t stammer. Didn’t look around nervously or lower his voice. When asked point-blank if fraud was happening in California, the state’s top Controller communications official answered like someone ordering lunch — casually, confidently, and without a shred of shame.

BREAKING: California Controller’s Top Communications Official Admits Audits “Are Not Getting Done” & Acknowledges “100 Percent” Fraud Exists in the State

“We [CA Controller’s Office] just can’t conduct the audits”

“There is no statewide plan on homelessness”

“They [CA… pic.twitter.com/Zi5m3yNvf4

— James O'Keefe (@JamesOKeefeIII) April 7, 2026

“Everywhere. Cities, counties, special districts, hospitals, insurance companies.”

Just like that. On hidden camera. Roll credits, folks — California just confessed.

The Tape That Should End Careers

The O’Keefe Media Group dropped undercover footage Tuesday that should be playing on a loop in every statehouse in America. Bismarck Obando — Acting Deputy Controller of Public Affairs and Press Secretary for California State Controller Malia Cohen — sat down with an OMG journalist and proceeded to spill the entire rotten barrel of beans.

Obando didn’t just admit fraud exists. He admitted nobody’s doing a thing about it.

“We just can’t conduct the audits,” he said.

And why not? Here’s the kicker:

“It’s funny because they haven’t funded us to do those audits… they keep cutting our auditing teams.”

Read that again. The state responsible for protecting California’s financial resources — a state that burns through taxpayer cash like a frat house with a credit card — can’t be bothered to fund the people whose job it is to make sure the money isn’t being stolen. The audits “are just not getting done.” That’s not an accident. That’s a feature.

Follow the Money — Into a Black Hole

And where is all this unaudited cash going? Great question. Let’s talk homelessness — California’s favorite billion-dollar bonfire.

Obando confirmed there is “no statewide plan” on homelessness, even as counties and cities are asking for another billion dollars this year to throw at the problem. A billion. With a B. And no plan. That’s like handing your teenager a gas card and saying, “Drive wherever, just don’t tell me about it.”

James O’Keefe, in honor of the late Nick Shirley, decided to do what Sacramento apparently won’t — he actually showed up. His team visited homeless shelters and nonprofits in South Los Angeles, including Abundant Blessings and Urban Alchemy. Both had been accused of fraud. Both were receiving mountains of government money.

And what did they find? Zero homeless people at these so-called shelters. Nobody home. Lights on, doors open, homeless people nowhere to be found.

$83 Million and Nothing to Show for It

Abundant Blessings Incorporated — a shelter claiming to end homelessness by providing housing — pulled in $23 million in public funds. Its executive director, Alexander Soofer, was arrested for fraudulently obtaining every dime of it.

Urban Alchemy, another outfit promising hygiene services and “safe sleep villages,” raked in over $60 million in government contracts, including more than $12 million through LAHSA since 2021. Sixty million dollars for toothpaste and blankets — except the homeless people themselves told O’Keefe’s undercover journalists they go to these shelters and the shelves are always bare.

Millions pour in. Nothing comes out. And nobody in Sacramento is checking the receipts because they deliberately defunded the people who check receipts.

The System Isn’t Broken — It’s Built This Way

This is why Trump keeps hammering the point about state-level corruption. Washington gets all the attention, but the real grift factories are humming along in state capitals where one-party rule means zero accountability. California doesn’t have an opposition party. It has a rubber stamp factory and a compliant press corps that treats Governor Newsom like a lifestyle brand instead of a public servant.

Trump didn’t create DOGE just to trim the federal fat. The whole philosophy — transparency, audits, accountability — is a direct rebuke to exactly this kind of rot. California is the poster child for what happens when you let the foxes guard the henhouse, fire the security cameras, and then ask for more chickens.

And now we have it on tape. A senior official, smiling into a hidden camera, admitting the whole machine runs on fraud and nobody’s watching.

California doesn’t have a homelessness crisis. It has a corruption crisis wearing a compassion costume. And Bismarck Obando just pulled the mask off.