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June 1, 2026 / 11:53 AM EDT
/ CBS News
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In a secret federal law enforcement warehouse in Southern California, dozens of Ferraris, Lamborghinis and stacks of coveted sports memorabilia – like Mickey Mantle rookie cards and game-worn Kobe Bryant sneakers – offer a modest testament to the mountains of taxpayer money being illegally diverted through fraud, law enforcement officials told CBS News.By some government estimates, at least $500 billion is lost to fraud schemes each year, though other sources, including those who consult with the government to track fraudulently-obtained funds, said the real figure is over $1 trillion. As the Trump administration has launched a crackdown on those cheating federal programs like Medicare, food assistance and hospice care, it is difficult to claw back the stolen funds, said Bill Essayli, the top federal prosecutor in Los Angeles."It should offend every American taxpayer that these people are taking advantage of the system," Essayli said. Seizing physical assets has been a first step in those efforts, Essayli said as he climbed the driveway of an eight-bedroom, ten-bathroom compound on an isolated Orange County hilltop – the former home to convicted serial fraudster Paul Randall."He was living like a king off us,"Essayli said.
