Fox News 2026-02-27 12:10:33


Bombshell report exposes billions in waste, fraud as group pledges to work with Trump

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FIRST ON FOX: As the Trump administration appoints Vice President JD Vance to lead a nationwide “War on Fraud,” a coalition of conservative state financial officers says it has already uncovered and stopped billions in taxpayer waste and is pledging to partner with the White House to root out corruption nationwide.

In a Thursday letter to the White House, the State Financial Officers Foundation (SFOF) praised President Donald Trump’s focus on what he called fraud scandals that have “resulted in tens of billions of dollars being stolen from American taxpayers,” writing that such corruption “shreds the fabric of a nation” 

SFOF CEO OJ Oleka told Vance that the group’s 40 conservative state treasurers, auditors and comptrollers across 28 states stand ready to support the administration’s anti-fraud mission, noting they collectively oversee more than $3 trillion in state funds.

The letter accompanied SFOF’s inaugural 2025 Oversight Report, which claims that affiliated state financial officers safeguarded more than $28 billion of waste, fraud, and abuse in 2025 alone.

The report highlights some of the most egregious examples within that $28 billion including in Florida, where Chief Financial Officer Blaise Ingoglia just under $2 billion in excessive spending and in Kentucky, where Auditor Allison Ball found more than $836 million in improper Medicaid payments.

Medicaid fraud has been of particular interest to the Trump administration given the massive fraud scandal that has unfolded in Minnesota and Vance said on Wednesday the administration has “decided to temporarily halt certain amounts of Medicaid funding that are going to the state of Minnesota in order to ensure that the state of Minnesota takes its obligations seriously to be good stewards of the American people’s tax money.”

HEAVILY REDACTED AUDIT FINDS MINNESOTA MEDICAID HAD WIDESPREAD VULNERABILITIES

The report also highlights North Carolina, where it says State Auditor Dave Boliek discovered more than $1 billion in lapsed salaries from long term vacancies in the state. Additionally, Utah auditor Tina Cannon identified more than $518 million in fraud, waste and abuse across agencies and nonprofits receiving state and federal funds.

In his letter, Oleka told Vance that SFOF’s members are “allies already on the battlefield” and stand ready to assist the administration in protecting taxpayer dollars.

“The American people deserve nothing less,” he wrote.

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SFOF argues that state-level financial watchdogs, often elected independently of governors and legislatures, are uniquely positioned to expose mismanagement and enforce fiscal discipline.

With billions already identified at the state level, the group says a coordinated federal-state approach could dramatically expand the scope of fraud detection nationwide, potentially reshaping how taxpayer dollars are safeguarded across the country.

“By working together, we can protect our nation’s treasure to the fullest extent against every foe and every plot to endanger it,” Oleka wrote.

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Bobby J. Brown killed in Maryland barn blaze after entering to start car

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“The Wire” star Bobby J. Brown has died, Fox News Digital can confirm. He was 62.

Brown’s talent agent, Dr. Albert Bramante, shared a statement following his client’s sudden passing.

“Bobby J. Brown was a uniquely talented actor and a man of great character. From his deep roots as a Golden Gloves champion to his impactful performances on screen, Bobby brought an unmistakable authenticity to everything he did,” the statement began.

“He was a dedicated professional and a true joy to represent. Our thoughts and prayers are with his family and loved ones during this incredibly difficult time,” Bramante’s statement concluded.

A press release obtained by Fox News Digital stated that firefighters reported a barn fire with entrapment just after 10 p.m. on Feb. 26. 

“Firefighters arrived to find a 50-by-100-foot barn nearly fully engulfed in fire. Family members on scene confirmed that one individual was still inside the structure. After the fire was brought under control, firefighters located a deceased male victim within the barn,” the St. Mary’s County press release stated.

The press release stated that the individual was attempting to jump-start a vehicle in the barn. St. Mary’s County stated that the victim contacted his wife, requesting a fire extinguisher, but by the time she came outside, the fire had engulfed the barn. 

The victim’s wife suffered burns to her hands and was transferred to the hospital. The press release did not list Brown by name. 

According to TMZ, Brown died on Tuesday in Maryland after being caught in a barn fire. Brown’s daughter told the outlet that her father died from smoke inhalation.

“Our thoughts and prayers are with his family and loved ones during this incredibly difficult time.”

— Dr. Albert Bramante, talent manager

The Maryland Office of the Chief Medical Examiner told TMZ that Brown’s cause of death was ruled “diffuse thermal injury and smoke inhalation.” The cause of death was also ruled an accident, according to the outlet.

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TMZ reported that Brown entered the barn to jump-start a vehicle. He called a family member, requesting a fire extinguisher, but by the time they arrived, the barn was up in flames, according to the outlet. TMZ shared that Brown’s wife suffered “severe burns” trying to save him.

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Brown’s breakout role was Officer Bobby Brown on “The Wire.” He also appeared in “Law & Order: SVU” and “We Own This City.”

The star is survived by his wife and two daughters.

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Pakistan declares ‘open war’ on Afghanistan: ‘Our patience has now run out’

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Pakistan’s defense minister declared an “open war” with Afghanistan on Friday after the two sides exchanged heavy fire along their shared border on Thursday, according to multiple reports.

Defense Minister Khawaja Mohammad Asif said in a post on X that Pakistan had hoped the Taliban would bring stability after NATO’s withdrawal, but instead accused the group of turning Afghanistan “into a colony of India” and “exporting terrorism.”

“Our patience has now run out. Now it is open war between us,” he said.

The clashes came after the Taliban said it launched retaliatory strikes on Pakistani military positions, while Islamabad said it was responding to unprovoked fire in the area.

Reuters reported that both forces clashed for more than two hours along their roughly 2,600-kilometer (1,615-mile) border, threatening a ceasefire that had been agreed to in 2025 after fighting.

Thursday’s flare-up came after Pakistani forces carried out airstrikes inside Afghanistan earlier this week, with Taliban officials saying the strikes killed at least 18 people, Reuters reported Feb. 24.

Pakistan said it targeted militant hideouts and rejected claims that civilians were targeted.

The Taliban described an “extensive” military operation against Pakistani army positions in response to the strikes.

“In response to repeated provocations, extensive preemptive operations have been launched against Pakistani military positions along the Durand Line,” Taliban spokesperson Zabihullah Mujahid wrote on X.

 In a separate statement, he said “specialized laser units” were operating at night.

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Taliban military spokesman Mawlawi Wahidullah Mohammadi also said in a video shared with Reuters that the “retaliatory operation” began Thursday evening.

Mujahid said “numerous” Pakistani soldiers had been killed and some were also captured. Reuters said it could not independently verify those claims.

In another post on X, Mujahid said, “The cowardly Pakistani army has bombed some places in Kabul, Kandahar, and Paktia. Praise be to God, no one was harmed.”  

Pakistan has since rejected the Taliban’s account. 

The Ministry of Information and Broadcasting said on X that the Afghanistan Taliban’s “unprovoked action along the Pakistan-Afghanistan border” was given an “immediate and effective response.”

The ministry said Taliban forces had “miscalculated and opened unprovoked fire on multiple locations” along the border in Khyber Pakhtunkhwa province.

The post said the fire was being met with an “immediate and effective response by Pakistan’s security forces.”

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“Early reports confirm heavy casualties on the Afghan side with multiple posts and equipment destroyed,” the ministry said. 

“Pakistan will take all necessary measures to ensure its territorial integrity and the safety and security of its citizens.”

Pakistani security sources also told Reuters that 22 Taliban personnel had been killed, and several quadcopters were shot down.

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The fighting follows Pakistan’s accusations that the Taliban is sheltering TTP militants behind a surge in violence and suicide attacks. 

The Afghan Taliban denies the claim. A day before February’s strikes, Pakistani officials said they had “irrefutable evidence” that militants were launching attacks from Afghan soil, Reuters reported.

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Newsom staffer’s salary in the hot seat after telling reporter to ‘f— off’

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Isaac “Izzy” Gardon, the communications director for Gov. Gavin Newsom who made headlines earlier this week for telling a national reporter to “f— off” after she pressed him on the California governor’s reported dyslexia diagnosis, is raking in a hefty six-figure salary, a Fox News Digital review found.

While Newsom’s dyslexia diagnosis has been public for decades, interest in the matter was amplified amid the California governor’s book tour he launched this month. During one of his first stops on the tour, in Atlanta, Newsom was asked about his dyslexia in conversation with Democratic Mayor of Atlanta Andre Dickens, who asked what he hoped readers would take away from the discussion about his diagnosis in the governor’s new book. 

“I’m like you. I’m no better than you. You know, I’m a 960 SAT guy,” Newsom said in response, garnering criticism online that he was pandering to the Black community.   

Amid the rebukes from MAGA world and Republicans, Real Clear Politics (RCP) national correspondent Susan Crabtree reached out to Gardon for verification on his childhood disability diagnosis. In response, Gardon told her to “respectfully, f— off.” 

The testy response led to further criticism targeting Newsom’s office and Gardon, including from RCP’s Carl Cannon, who questioned why people who are offended so deeply by Trump “consistently imitate his worst behavior.” Newsom’s press office has been known to meet the White House’s pointed and often hostile social media posts targeting Democrats, which frequently include AI generated images, with similarly hostile social media posts targeting Trump and Republicans. 

When reached for comment on this story, Gardon told Fox News Digital that “Susan is not a journalist.”  

“She’s a MAGA blogger who writes about conspiracy theories,” Gardon added. 

Transparent California, a statewide public pay and pension database, revealed that Gardon is being paid quite handsomely to be one of Newsom’s most ardent defenders online. Gardon has risen in stature from an administrative assistant making around $30,000 per year in 2019, to earning $212,154.02 in 2024 as a senior assistant and communications director in Newsom’s office.

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Gardon’s “regular pay” in 2024 was $152,091.05. That was also supplemented by nearly $57,000 in benefits and another $3,141.16 in “other pay,” according to the database, leading to a combined annual payment of $212,154.02. However, his current pay, which does not appear to be publicly available online, is likely to be higher.

Following news of Gardon’s response to Crabtree’s follow-up, a senior reporter for the California Post also shared an email from Gardon in response to one of his media inquiries. 

In Gardon’s response, he referred to the New York Post as the “New York Comic Book.” Then, when Koehn followed up, indicating the San Francisco Chronicle was covering the same story, Gardon replied, “I’d put that outlet in the same bucket,” according to Koehn, who posted screenshots of the pair’s back-and-forth on X.

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While some top Newsom staffers have praised Gardon’s style, including his boss and senior advisor of communications, Bob Salladay, who told Politico that “Izzy’s creativity and imagination is part of what the governor is doing.” Some Democratic operatives have vocally been critical about his communication style, including Garry Tan, a prolific Democratic donor and CEO of Y Combinator

“Most unprofessional person to ever work in politics,” Tan posted on X. “Izzy Gardon brings shame to the Newsom campaign.”

In addition to the email, Gardon came under fire earlier this month when he referred to rapper and MAGA activist Nicki Minaj as a “stupid hoe” on X. He defended his social media post by pointing to her 2012 song called, “Stupid Hoe.”

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Brady Tkachuk refuses to apologize for Team USA’s response to Trump’s quip

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Brady Tkachuk is back with his Ottawa Senators, and he stood his ground when faced with a question about the viral moment when Team USA laughed at a joke by President Donald Trump about the women’s ice hockey team during a phone call after both teams won gold medals in Milan.

As players like Boston Bruins goalie Jeremy Swayman admitted, players “should have reacted differently.”

Tkachuk responded to a reporter’s question about the moment Trump said he would “have” to invite the women’s team, which also defeated Canada in the Olympics, to Tuesday’s State of the Union or else he “probably would be impeached.”

“Yeah, I get it,” Tkachuk said when a reporter asked if he understood that the women’s team felt displeased with the men’s team’s reaction. “I have no other comments other than for the things we can control. We supported them. They supported us. Can’t control what other people say.”

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Tkachuk added it was “fun” being around the women’s team while in Milan.

“It was fun seeing them play, fun to see the excellence they brought every single game and how they’re, by far, the best team in that tournament,” he said. “It was just fun seeing them after picking their brains. They were picking our brains, and it was just fun being around them.”

Tkachuk was asked a follow-up question about why he would laugh at Trump’s joke. Again, he stood his ground.

“It was a whirlwind of a moment. You can’t really control what somebody says, and I guess it caught [us] off guard a little bit,” he said. “I mean, when you’re talking to the president 10 minutes after you just achieved your dream, it’s just the fact that you’re talking to him, 

“You can’t really believe where your life is at where you’re talking to the president of the United States after you just won a gold medal.”

Tkachuk was with his U.S. teammates at Trump’s State of the Union address Tuesday night, and the chamber gave the team a standing ovation as players showcased their Olympic gold medals

The women’s team declined an invitation to Washington, D.C., citing “previously scheduled academic and professional commitments.” Trump said at the State of the Union address that the women’s team will visit the White House “soon.”

USA Hockey responded to Trump’s suggestion that the team would be going to the White House. 

“Players are back competing with their professional and collegiate teams and are in the midst of their season,” a USA Hockey spokesperson told Front Office Sports. “They’re honored and grateful to be invited, and any opportunity to visit the White House as a team will be based on their schedules once their seasons conclude.”

While there’s been a divide on social media about the moment, Ellen Hughes, the mother of Jack and Quinn Hughes, who played a role in Team USA’s fate in Milan as a player development staff member with the women’s team, did not seem bothered by Trump’s comments.

“These players, both the men and women, can bring so much unity to a group and to a country,” she told “Today.” “People that cheered on that don’t watch hockey, people that have politics on one side or on the other side, and that’s all both the men’s team and the women’s team care about.

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“If you could see what we see from the inside, and the men and women sharing, you know, dorm rooms and halls and flex floors and the camaraderie and the synergy and the way the women cheered on the men and the way the men cheered on the women — that’s what it’s all about,” she added. 

“And the other things they cannot control. They care about humanity. They care about unity, and they care about the country.”

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Duchess of York’s disappearance raises questions ahead of planned UK return

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Sarah Ferguson, the Duchess of York, could face renewed scrutiny when she returns to the United Kingdom following the arrest of her ex-husband, former Prince Andrew, according to royal experts. 

The former prince, now known as Andrew Mountbatten-Windsor, 66, was arrested Feb. 19 on suspicion of misconduct in public office as part of an inquiry linked to his ties with the late convicted sex offender Jeffrey Epstein. He was released after 11 hours, has not been charged and denies any wrongdoing.

Meanwhile, the 66-year-old Duchess of York has kept a low profile in recent months and her current whereabouts remain unknown. The U.K.’s DailyMail reported that Ferguson was last seen leaving Royal Lodge, Andrew’s former 30-room mansion, in September. Although they divorced in 1996, the pair continued living on the property.

According to People magazine, the duchess reportedly planned to spend a few months overseas — leading royal watchers to speculate over what could await her upon a return to Britain.

While Ferguson has not been accused of any wrongdoing and no arrest warrant has been issued, legal and royal experts told Fox News Digital that her homecoming could still draw fresh attention to her own past ties to Epstein and raise new questions about whether authorities may seek her cooperation as a witness. 

Simarjot Singh Judge, managing partner at Judge Law, said there was little basis for assuming any immediate action by authorities if Ferguson were to return to the U.K. “If there is no arrest warrant, bail condition, or active requirement to attend an interview, the most likely ‘first thing’ is simply that nothing happens at the border beyond standard entry checks,” he explained. 

“In the U.K., an arrest generally requires reasonable suspicion of an offense and is typically carried out by police when necessary and proportionate,” Judge continued. “If police wanted to speak to her, the usual starting point would be contact via lawyers to request a voluntary interview or statement — especially for high-profile cases.”

“Most legal analysts believe upon her return to the U.K., it would be highly likely she’d be contacted and interviewed as a key relevant witness by either prosecutors or police but currently there isn’t any arrest warrant.”

— Hilary Fordwich

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Judge also urged caution regarding online chatter about a possible arrest and weighed in on any potential legal hurdles that Ferguson could face.

“Treat ‘arrest rumors’ cautiously unless they’re backed by credible reporting of a warrant, charge, or formal request,” he said. “At the moment, reputable coverage is focused on the wider fallout from the Epstein-linked revelations and on Andrew’s situation, not on any formal allegation against Sarah Ferguson.”

“Practically, the hurdles, if any, would depend on whether authorities consider her a witness, a person of interest, or neither,” Judge added. “Without a warrant or formal process, there’s no automatic legal ‘trap door’ upon arrival.”

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However, royal expert Hilary Fordwich told Fox News Digital that it was widely believed authorities would be interested in speaking with Ferguson upon her return to the U.K. despite the lack of an arrest warrant. 

“While I’m not a lawyer, most legal analysts believe upon her return to the U.K., it would be highly likely she’d be contacted and interviewed as a key relevant witness by either prosecutors or police, but currently there isn’t any arrest warrant and to date she has not been referred to as a suspect,” Fordwich said. “This though, as we saw with both Andrew and Mandelson, could change at any minute.”

Days after Andrew’s arrest, British police arrested former U.K. Ambassador to the U.S. Peter Mandelson on suspicion of misconduct in public office related to allegations he improperly shared sensitive government information with Epstein. He was later released on bail pending further investigation and has not been charged.

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Judge shared his opinion on the likelihood that authorities would question Ferguson and whether her potential cooperation would be advantageous for her. 

“If authorities believe she has relevant information — communications, introductions, timelines, financial context — she could be useful as a witness,” he said.

“Cooperation in the U.K. commonly means: providing documents, giving a witness statement, or attending a voluntary interview through solicitors,” Judge continued. “If she is genuinely not suspected of wrongdoing, cooperation can help by clarifying facts early, reducing speculation, and demonstrating transparency — without implying liability.”

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Fordwich pointed out that as Ferguson does not hold any official royal role, she would not have any special legal protections.

“She is not a working royal, doesn’t have HRH status or indeed any formal royal role,” Fordwich said. “She doesn’t have sovereign immunity or any institutional cover.” 

“The family has already distanced themselves from her, likewise her former friends and charities,” she added. “Mere association with her currently is viewed as totally unacceptable.”

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While speaking with Fox News Digital, Judge weighed in on how the royal family would handle media relations if Ferguson’s return to the U.K. sparked controversy. 

“Most likely strategic distance, with strict message discipline: ‘This is a matter for the legal authorities’ and ‘no comment,'” he said. “The Palace typically avoids anything that looks like intervention in policing or courts. Where needed, they might emphasize that Sarah is a private individual and not a working royal — limiting institutional exposure.”

Judge said that Ferguson would need to navigate any potential legal concerns independently.

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“Even with royal proximity, the Palace cannot and should not be seen to influence legal process,” he said. “If she needs legal advice, representation, or crisis comms, that is handled privately via her own team. Recent reporting has portrayed her public position and commercial ties as being under pressure, reinforcing that separation.”

Royal expert Ian Pelham Turner shared his view regarding why Ferguson had chosen to stay out of the spotlight rather than address the controversy directly.

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“Why has she hidden herself away, probably for fear of being pressurized for spilling the beans, constant media and police surveillance and the fear of becoming a scapegoat,” he said. 

Judge shared his thoughts on whether Ferguson’s choice to remain out of public view was the wisest course of action.

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“Staying out of sight is a common crisis tactic when facts are still emerging and headlines are volatile — especially when there is intense reputational heat and any comment could create new angles,” he said. “Some reports suggest she has kept a low profile amid renewed scrutiny.”

“Whether it’s ‘wise’ depends on the objective: if the priority is legal prudence and reducing missteps, silence can be sensible,” Judge continued. “If the priority is reputation repair, prolonged silence can allow narratives to harden — so many advisers prefer a short, carefully lawyered statement that sets boundaries (no wrongdoing alleged, willingness to assist if asked, focus on private health/family) and then goes quiet again.”

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Judge also weighed on whether Ferguson’s return to the U.K. might be received as a redemption arc or alternatively, if it could bring renewed attention to some of her past controversies. 

“It risks reopening old chapters, especially if timed alongside ongoing news,” he said.  “A ‘redemption’ framing generally only works when there is closure and clarity. If public interest is still active, the safer route is a low-drama approach: minimal visibility, measured statements through representatives, and avoiding any appearance of spinning.”

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Convicted child predator nabbed hours before scheduled prison release date

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A convicted California child molester who was set to walk free this week was instead turned over to law enforcement after a new arrest warrant was issued in Placer County, state officials confirmed.

The California Department of Corrections and Rehabilitation (CDCR) said that at approximately 7:30 a.m., David Allen Funston, 64, was transferred to law enforcement authorities after Placer County filed new criminal charges and issued a warrant for his arrest.

Funston had been granted parole Tuesday and was scheduled for release later this week.

CDCR said Funston was sentenced in 1999 to life with the possibility of parole in connection with sexual abuse of children, including kidnapping and lewd and lascivious acts with a child under 14 years of age.

Funston is accused of kidnapping and molesting a child in Roseville in 1996, according to Placer County prosecutors.

Funston was convicted in 1999 of kidnapping and child molestation involving multiple victims. He was originally sentenced to three life terms in prison. However, under California’s Elderly Parole Program, he was granted parole suitability and scheduled for release from CDCR custody.

The Placer County District Attorney’s Office said it refiled charges against Funston stemming from the 1996 case within the state’s statute of limitations.

He was found suitable for parole at a hearing before the Board of Parole Hearings on Sept. 24, 2025.

On Jan. 9, 2026, Gov. Gavin Newsom referred the case back to the Board of Parole Hearings for an en banc review, in which a majority of appointed commissioners reconsider the prior parole decision. On Feb. 18, 2026, the board reaffirmed its recommendation that Funston receive parole.

Funston qualified for consideration under California’s statutory Elderly Parole Program, which allows individuals to be considered for release once they reach age 50 and have served at least 20 consecutive years of incarceration.

California GOP Chair Corrin Rankin said the last-minute arrest does not resolve what she described as broader failures in state policy.

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“This last-minute warrant doesn’t fix the problem — it exposes it. California Democrats, led by Gavin Newsom, built a parole system that was ready and willing to release a violent child predator back into our community. Newsom signed the laws that created these loopholes, appointed the people who uphold them, and the Democratic majority in the legislature continues to prioritize the well-being of criminals over victims,” Rankin said.

The former prosecutor who helped put Funston behind bars also weighed in after news of the arrest.

“God bless Placer County DA for charging David Funston for crimes committed by this serial child predator,” the former prosecutor said. “Let’s remember that @CAgovernor signed the law allowing this to happen. But Placer DA stepped in to stop this insanity.”

For victims, the controversy remains deeply personal.

One of Funston’s victims, identified as Amelia, voiced outrage this week after learning the parole board had approved his release.

“I’m disgusted with the fact that they would even believe anything that he would happen to say,” Amelia told “The Ingraham Angle.” “I don’t believe that people like that change.”

Amelia said Funston’s abuse has had lasting consequences on her life, including ongoing trauma and difficulty conceiving.

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“I would love to have a child, and this is what this man took from me. And I feel like, personally, that’s very hurtful,” she said. “I have trauma. I don’t trust anybody. I don’t trust anything.”

She also expressed concern for younger family members if Funston were to return to the Sacramento area.

“If he gets out, who knows if he’ll do it again?” Amelia said. “I was told that he fantasizes still about children… why would you let this man out? When he gets out, how do you not know if he will continue?”

Funston reportedly told the parole board he was “disgusted and ashamed” of his past behavior and “truly sorry” for the harm he caused. Amelia rejected that apology.

Funston’s impending release had drawn sharp criticism from Sacramento County Sheriff Jim Cooper and District Attorney Thien Ho, who warned he remained a danger to the community and sought intervention to stop his release.

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It remains unclear when Funston will make his first court appearance in Placer County.

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Botched AI deal emerges after FBI raids home, office of LA schools superintendent

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The federal investigation into the Los Angeles Unified School District superintendent, whose home and school office were raided Wednesday, may be tied to a failed multimillion-dollar AI school contract involving a potential conflict of interest.

Alberto Carvalho previously awarded a $6 million contract, paying $3 million up front, to education technology company AllHere. 

A former salesperson employed by the firm also had her Miami property raided the same day as Carvalho, according to public records cited by the Los Angeles Times. The woman, Debra Kerr, reportedly had close ties to Carvalho during his tenure leading Miami-Dade County Public Schools.

Spokesperson Jim Marshall confirmed to local media Miami Herald that “we searched a residence in Southwest Ranches today as part of this matter and have since cleared the scene.”

In 2023, Carvalho secured a contract with AllHere to develop an AI chatbot called “Ed,” designed to help address student issues such as absenteeism.

It ultimately collapsed in 2024 after its founder, Joanna Smith-Griffi, was accused of embezzling funds amid data privacy risks and whistleblower concerns. She was later charged with securities fraud, wire fraud and identity theft.

Kerr further claimed in AllHere’s bankruptcy court filings that the company owed her commissions for helping secure its deal with LAUSD, according to education-focused outlet The 74. 

While federal officials confirmed that search warrants were conducted Wednesday, they declined to reveal the nature of the investigation, noting that the warrants remain under seal.

However, sources told the LA Times that the investigation fell under the broad category of financial issues, and that the raid focused on Carvalho rather than the California school district.  

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LAUSD released a statement saying the district is fully cooperating with federal officials.

“The LAUSD Board of Education understands that today’s news has raised questions across our school communities,” it said. 

“The Board’s priority remains ensuring that our students, families, and employees experience a safe and welcoming learning environment. Teaching and learning continue across our schools. Los Angeles Unified continues to stay focused on our responsibility to serve students and our families.”

The superintendent has led the nation’s second-largest school district since 2022, overseeing the education of roughly 400,000 students. He was also unanimously reappointed to the position in September 2025.  

Before moving to California, he spent 14 years leading Miami‑Dade County Public Schools, the nation’s fourth-largest school district. 

Wednesday’s raids mark the latest controversy to engulf Carvalho.

In 2020, he helped secure a $1.57 million donation from a company that had a pending contract with the district, the Miami Herald reported.

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The funds reportedly went to an education nonprofit he founded, and the company’s online learning program, which was ultimately plagued with problems, was quickly scrapped.

In June 2021, the school’s inspector general determined that the donation, intended to benefit teachers, did not violate any policies but created the “appearance of impropriety,” the outlet said. The foundation was subsequently urged to return the funds, which reportedly had been distributed to teachers as $100 gift certificates.

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Judge rules on whether Trump can move forward with $400M White House ballroom project

A federal judge on Thursday denied a legal challenge to President Donald Trump‘s White House ballroom project, clearing the way for construction on the estimated $400 million expansion to proceed.

U.S. District Judge Richard Leon denied the injunction sought by the National Trust for Historic Preservation, saying the group was unlikely to succeed on the merits. The group sued the Trump administration in December to halt construction, arguing it skipped required reviews and failed to obtain congressional approval before demolishing the East Wing of the White House.

In his order, Leon wrote that the preservation group relied on a “ragtag group of theories” under the Administrative Procedure Act and the Constitution. 

He wrote that the challenge failed because “the White House office in question is not an agency” under the APA and because the plaintiff did not bring what was needed to challenge the president’s statutory authority to complete the project with private funds and without congressional approval.

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Trump celebrated the decision on Truth Social, saying the ballroom would be entirely funded by private donors.

“Great news for America, and our wonderful White House! The Judge on the case of what will be the most beautiful Ballroom anywhere in the World, has just thrown out, and completely erased, the effort to stop its construction,” Trump said. “As everyone knows, not one dollar of Taxpayer money is being spent, but rather, all money necessary to build this magnificent building is being put up by Patriot Donors and Contributors.”

Trump said construction on the 90,000-square-foot ballroom – which he said could host inauguration events and state dinners – is “ahead of schedule and under budget.”

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“It will stand long into the future as a symbol to the Greatness of America!” Trump added.

Leon left the door open for the preservation group to amend its complaint and seek reconsideration.

National Trust President and CEO Carol Quillen vowed to continue the lawsuit.

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“While we are disappointed that the Court did not issue the preliminary injunction, we were pleased that Judge Leon ruled that the National Trust has standing to bring this lawsuit, as we have asserted from the start,” she said in a statement. “We are also pleased that he encouraged us to amend our complaint—specifically, to assert that the President has acted beyond his statutory authority—and we plan to do so promptly. The judge indicated he will rule expeditiously once we do so, and we will await his decision.”

The ruling came after the U.S. Commission of Fine Arts approved the ballroom proposal last week, putting the project on the fast track ahead of further review March 5 by the National Capital Planning Commission.

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