{"id":167336,"date":"2026-01-29T08:00:02","date_gmt":"2026-01-29T16:00:02","guid":{"rendered":"https:\/\/lukeford.net\/blog\/?p=167336"},"modified":"2026-01-30T08:52:35","modified_gmt":"2026-01-30T16:52:35","slug":"trump-admin-vs-medical-fraud-rings","status":"publish","type":"post","link":"https:\/\/lukeford.net\/blog\/?p=167336","title":{"rendered":"Trump Admin vs Medical Fraud Rings"},"content":{"rendered":"<p><A HREF=\"https:\/\/www.stevesailer.net\/p\/the-difference-between-somali-and\">Steve Sailer says<\/a>: <\/p>\n<blockquote><p>Both Nigerian and Somali immigrants are notorious for embezzling funds from trusting Americans. But they go about it in rather different ways.<\/p>\n<p>Minnesota Somalis prefer to minimize the number of non-Somalis allowed in on the action&#8230;<\/p>\n<p>If, say, a Nigerian immigrant comes up with a white collar crime scheme, he will probably recruit his co-workers of various ethnicities. And if some Eurasian Man In Gold Chains is the brains of the operation, some Nigerians will be happy to pitch in in subordinate roles.<\/p>\n<p>Nigerians scamsters are friendly that way.<\/p>\n<p>Nigerian-American frauds tend to exemplify the melting pot, bringing a tear of joy to the Statue of Liberty\u2019s eye. It\u2019s diversity, equity, and inclusion in action.\n<\/p><\/blockquote>\n<p><A HREF=\"https:\/\/www.stevesailer.net\/p\/dr-oz-vs-men-with-gold-chains\">Steve Sailer writes<\/a>: <\/p>\n<blockquote><p>As of the second quarter of the 21st Century, health care fraud is one of Southern California\u2019s most venerable traditional industries. As I\u2019ve often mentioned, it tends to be impressively multicultural, with, say, Nigerians, Ukrainians, Chileans, Russians, Israelis, etc. putting aside their ethnic differences to gang up to pilfer from the public purse.<\/p>\n<p>Dr. Oz, the Trump Administration\u2019s head of Centers for Medicare and Medicaid, is drawing attention to fraud in the San Fernando Valley, my home. He\u2019s implying that Russian Armenians tend to be the brains of these operations:<\/p>\n<p><iframe width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/SpfH6uAkWF8?si=2c0PS5osNsMiT1WP\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<\/blockquote>\n<p>ChatGPT says: <a href=\"https:\/\/lukeford.net\/blog\/wp-content\/uploads\/2025\/09\/StrangeBedfellows-PsychInquiryThirdRevision2.docx\">Alliance Theory<\/a> would read this as a struggle over legitimacy, signaling, and jurisdiction.<\/p>\n<p>First, Dr. Oz\u2019s move is not mainly about fraud. Fraud is endemic and well known. Alliance Theory says the real action is boundary drawing. By naming a specific fraud ecology and implying identifiable organizers, Oz signals that the Trump administration is willing to violate an elite taboo. You can crack down on fraud in the abstract. You are not supposed to narrate how it actually works on the ground. Doing so asserts sovereignty over bureaucracies that have quietly learned to coexist with fraud.<\/p>\n<p>Second, the \u201cmen with gold chains\u201d trope functions as an alliance marker. It is not an empirical claim so much as a cultural shorthand that tells different audiences different things. To populist audiences, it says the system is being looted and everyone knows it. To elite media and bureaucratic audiences, it signals norm violation. Naming patterns is treated as hostility because it threatens the coalition that depends on silence.<\/p>\n<p>Third, Alliance Theory predicts selective enforcement narratives. Healthcare fraud persists because it knits together local actors, regulators, landlords, inspectors, and financial intermediaries. These are not conspiracies. They are stable coalitions where everyone gets something. Fake storefronts are not mistakes. They are equilibrium outcomes. Rent gets paid. Inspectors avoid conflict. Politicians avoid ethnic controversy. Nobody rocks the boat.<\/p>\n<p>Fourth, Oz\u2019s posture reframes the story from technocratic failure to moral betrayal. That is dangerous to incumbents. If fraud is just complexity, no one is at fault. If fraud is tolerated because it benefits aligned groups, then someone is responsible. Alliance Theory says institutions will fight the latter framing hard.<\/p>\n<p>Fifth, the ethnic diversity of fraud rings is not evidence of harmony or pathology. It is evidence of instrumental trust. Alliance Theory predicts that high-risk illegal enterprises form coalitions based on reliability, kinship where useful, and cross-group partnerships where necessary. Ideology and identity matter far less than enforceable loyalty. Fraud is one of the few domains where Putnam-style low-trust diversity flips into high-trust pragmatism because defection is punished immediately.<\/p>\n<p>Sixth, why this story irritates polite society. Because it collapses three things elites prefer kept separate. Immigration. Crime. Bureaucratic complicity. Each can be discussed alone. Linking them implies the administrative state is not neutral. Alliance Theory says that is the real transgression.<\/p>\n<p>Finally, Oz himself. He is an outsider Ottoman, not a guild priest. His power comes from media charisma and presidential backing, not from bureaucratic ascent. Alliance Theory predicts that if he keeps naming how fraud ecosystems actually function, the response will not be data rebuttal. It will be moral condemnation, accusations of bigotry, and procedural sabotage.<\/p>\n<p>In short, the story is not about Armenians, Nigerians, or fake hotdog shops. It is about whether anyone is allowed to describe how informal alliances hollow out formal institutions. Alliance Theory says that is always the real fight.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Steve Sailer says: Both Nigerian and Somali immigrants are notorious for embezzling funds from trusting Americans. But they go about it in rather different ways. Minnesota Somalis prefer to minimize the number of non-Somalis allowed in on the action&#8230; If, &hellip; <a href=\"https:\/\/lukeford.net\/blog\/?p=167336\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2603],"tags":[],"class_list":["post-167336","post","type-post","status-publish","format-standard","hentry","category-fraud"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.9 - aioseo.com -->\n\t<meta name=\"description\" content=\"Steve Sailer says: Both Nigerian and Somali immigrants are notorious for embezzling funds from trusting Americans. 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