'FRAUD AT SCALE': Elon Musk exposes shocking waste that makes people 'numb'

[Music] Tonight, our exclusive look into Doge. Elon Musk was nice enough to invite us into the Eisenhower building last night to sit in on his weekly 1000 p. m.

Doge meeting. Yeah, they usually meet at 10:00. I'm almost in bed by then.

We met the whole crew, even big balls. And they showed us how Doge really gets done. We sat back, listened, and we learned a lot, and we hope you do, too.

Here's part one of our exclusive interview. Elon, thank you so much for bringing in the meeting here. I'm gonna do something no anchor ever does.

I'm not going to talk. What? For as long as possible.

You're talking right now. I'm going to let you run your meeting and then I'll interrupt when I'm bored. So, take it away.

So, like a board meeting. Like a board meeting. Exactly.

All right. Well, I guess we normally go around the table say what what do we get done this week? go this way.

Sure. No, we start with you. Sure.

Um so actually um a lot of great work at the Treasury this week. Um one of the crazy things at um with regards to the Treasury um is that when a payment is made and the computers at the Treasury actually pay about $5 trillion per year, like crazy amounts. Um there was formerly not a budget code on there.

So if some payment was made, you didn't know actually what it was for. Um, it could have been for anything. There was a a $4 billion COVID fund um in the Department of Education and there was no receipts required so people could just draw down on it.

And when people looked into it, this wasn't us, this was before us, um, they found that money was being used to rent out Caesar's Palace for parties, rent out stadiums, um, etc. And so the one change that Doge made with Department of Education is we had the simple requirement that if you draw down money, you must first upload a receipt. That was the only change that was made.

you must upload your receipt. And upon doing so, yes, nobody drew down any money anymore. Yes.

But we we didn't say that we'd check the receipt. You could send a fake receipt. You could send a picture of your dog.

Anything. Anything. Anything.

And And they But soon as we asked for anything at all, that suddenly the requests were like, "Oh, we don't need it anymore. " Huh. That's interesting.

They were renting Caesar's palace. Yes. They were like basically partying on the tax share of money.

Stadiums. Yes. Leasing stadiums.

Leasing stadiums for what? For parties. Basically for parties.

Yes. That's a big party. It's a big party.

You'd think if you were stealing you'd start small. They do start small. Uh but then over what happens is over the years.

So generally the fraud starts out small and they try to hide it. But then year after year, if nobody stops the fraud, it gets more and more brazen and and every year it gets bigger until they're literally renting out stadiums like in a million dollars to rent out a stadium. Fraud infro infronte deleto.

Okay, we're talking at scale. I'm This is driving me crazy. Oh yeah.

When you find these things, do you guys get mad? Do you like Yes, I got one. How does it how does it make you feel?

It's so common though. It's so common. I mean, you just get so numb to it.

Unfortunately, you like the hundth time you've heard it, it's hard not to get a little numb. Yeah. You know, but like and by the 200th time, you're like, "Well, okay.

It's just another day at the office. " We checked um is the Small Business Administration giving loans to dead people, people over the age of 120. Um the answer was yes and uh it was around $330 million in total.

So people with a birthday that could not possibly be real. Yeah. Meaning they're they're over they're 115 years old or older.

The oldest living American is 114. So the safe to say if anybody is in in the system as 115 years or older that is fake. So just by sharing a database and looking at social security numbers that showed that at the time of the loan they had listed as over 115 years old or actually under 11.

We didn't even check for under 18 babies and under 11 years old. That's pretty clear. Babies and dead people who were getting loans.

That was $660 million. Yeah. And also people with birth dates in the future.

What does that mean? Uh well in one I mean I think the like the birth date birth date I think in one case was like fetuses were getting no not even no really sort of a a you're talking about like your great grandchildren like with the birth date like of I think it was like 2165 so more than a century from now was the birthday George Jetson was getting paid. Yes.

Because your birthday is in the future, like the far like for the far future, not like next year. And uh we either this is either fraudulent or we have your birthday wrong, right? It's either a typo or someone stealing.

Which is it? Yes. Yes.

You should at least ask which is it? Do you guys feel you're getting justice and accountability? One of the uh I think extreme examples of nonattccountability in some cases is has occurred at some of the small agencies.

Uh I think the Interamerican Foundation IIAF is one of the agencies we visited where uh you know they get $50 million a year congressional money to give grants. These are things like uh you know Alpaka farming in Peru improving that's that's a real example. Yes, that's that's a real description.

um improving the marketability of peas in Guatemala. Really? Fruit jam.

Uh and what? Yeah. And so you might expect, you know, in the private sector, a nonprofit to give, you know, 80 to 90% of their money to grantees.

In the case of IIAF, that was 58%. So the other half goes towards management, travel. What what we find exactly I mean to Ethan's example is is that um even if you agreed with with supporting alpaca farmers in Peru um well actually most of the money never made it out of DC.

Mhm. It's going into the pockets of people in in the neighborhood. What percentage didn't even get to Peru?

Right. So what percentage do you think doesn't even get to the destination it's supposed to? Um, I believe the GAO estimates, so this is not our estimate, I believe it was on the order of um, only 10 to 15 cents on the dollar actually gets to the end recipient, whether you agree with that cause or not.

So, they're just stealing the money before it even gets anywhere. There's layers of stealing. So, there's like there's the first layer of stealing, second layer of stealing, third layer of stealing, subcontractor, subcontracting the Exactly.

contractor, subcontractor, subcontractor. It's like peeling an onion and then maybe and sometimes it's zero. Uh just black you get to the bottom of the onion, there's nothing there.

So maybe no one got a sex change in Guatemala. It's possible that no one got a sex change in Guatemala. I overheard a contractor um tell one of her colleagues to uh falsify billable hours by creating a PowerPoint to mask a delay in the onboarding process in front of me.

And this is like hour zero at this agency. And so I mean this is just a common theme that you take a look at these contracts, you take a look at these grants and it's veiled in noble rhetoric. You know, it's at the top level.

It's like it sounds good. Yeah. It sounds amazing.

And then you actually just follow what is the what are the funds actually doing or send us a picture. Exactly. And the send us a picture request is incredibly good at like pixel it didn't happen and then then they're like and it wouldn't be that hard to just frankly they could search for for some fake pics on the internet or get AI to generate the pics but they don't even bother doing that.

So you you caught them cold billing fraud. Oh I caught them um her advising her colleague to do this because it takes a few days to onboard. Um so that is being investigated right now.

Yeah. Yeah, I mean generally like like these programs, these grants are going to be like along the lines of save the baby pandas and it's like well of course who wouldn't want to save the baby pandas. Um and um and you know in some cases they've got uh a a show panda which they will they will try out for special occasions.

In a lot of cases they don't even have a show panda. No panda. There's not even one panda because we asked for pictures and um we don't even get one panda.

And he's like, "Well, you gotta Well, that's a lot. You know, what's what's what does a billion dollars get you? It does not even get you one panda.

You really want to see a baby panda? " Yeah. That Well, like, you know, like the Ebola money.

We're like, "Okay, well, we agree with like we shouldn't have Ebola, you know. Um, where is the money going? Oh, it's going to deote in DC.

" Like, what is an accounting firm doing with Ebola money? What has been the biggest resistance? Is there one agency?

Is there one department that when you guys walk in, they all start fighting you, start hiding? I thought you weren't going to talk. I'm sorry.

Uh, but I guess you can answer that question. Sure. I mean, let's let's Yes, we've we've certainly had some battles.

Battles? Yeah. Yeah.

Um, I mean, yeah. Who should talk about Yousef? Oh, Nate.

Okay. Yeah. Yeah.

So, Jesse, there's there's an agency, a small agency called the United States Institute of Peace. Um, it was definitely the agency we had the most fight at. Um, we actually went into the agency and found they had loaded guns inside of their headquarters.

Institute for Peace. I mean, any given company, any given organizational name is going to be kind of be the opposite of the title, right? Yeah.

Yeah. And so, it was the by far the least peaceful agency that we've worked with. Um, ironically, of course.

Um, additionally, we found that they were spending money on things like private jets and they even had a $130,000 contract with a former member of the Taliban. This is this is real. We don't encounter that at most agencies.

Yeah. What was the money going to the Taliban for? So, it was a contractor.

Uh, they received $130,000 for generic services. And to Elon's point, there was not actually a clear description of what the contractor services were for. Was it for opium?

Uh, unclear. or or weapons um or nothing or or nothing or or abroad or yeah nothing and you naturally have to ask the question how did we get here like when the country was founded there were only four agencies um today there are over 400 so there's been a 100x increase in the number of agencies since the founding of the nation and thanks to President Trump he's now signed two executive orders to start to reduce the number of agencies in the government and the Institute of Peace was one of them which is why our team went in to try and understand what was going on and that's when we found all of the craziness like the weapons in their armory. We found the payments to the Taliban.

Okay. Oh, yeah. To try to hide the evidence, right?

So, just a few hours after we got into their headquarters, we found that their chief accountant had actually deleted over a terabyte of accounting records from several years. So, you'd have to ask the question, well, why would somebody do that? And the Doge team fortunately was able to recover that data with the help of a few great employees at the Institute of Peace.

Um, and I think the most troubling thing was they received $55 million a year from Congress. and any money that went unspent, instead of returning that to Congress, they would sweep it into a private bank account, which had no congressional oversight, and that's what they would use to fund things like events at their headquarters and the private jets. And so, I think it's a great example because most Americans don't know what's going on at a lot of these smaller agencies.

And this is, I think, the most extreme case of some of the um wasteful spend that we're finding. So, the agencies are hiding money from you. They're sending it to the Taliban.

They have loaded weapons in the department buildings at the Institute of Peace. At the Institute of Peace. Yes, that's right.

So, this is a cover up when you guys roll in. This one? Yes, cover up.

Yes, it's a cover. Can we They did delete a vast amount of financial information. That's really a definition of a cover up.

Isn't that illegal to delete evidence? Yes. Shred documents?

It is. It's It's certainly illegal to delete accounting records that the that Congress would certainly want to know where the congressionally appropriated funds are going from from taxpayers. When you catch them going Hillary style on their computers, do you refer this to the Department of Justice?

In this case, we did refer the evidence in the accounting example to the FBI and DOJ. Um, and we were proud to do that. Um, so yes, we did.

Resistance has shown up in some very surprising places. So for example, the famous fork in the road email, the deferred resignation program. So this was a program where you could resign from the government, collect pay and benefits for the next 8 months.

Uh probably the most attractive separation program ever in human history. And the resistance actually came from the outside with people saying this is a trick. And I heard somebody refer to it as an apple with a razor blade.

And no, this was just a really juicy apple, caramel dipped apple. It it it was that good, but people were talked out of out of taking it. And uh now what started to happen is we did have about 80,000 people take it.

And now those folks who did take it are on the beach or they've moved on to a new job and they're still getting paid. And so now we're starting to offer fork two and fork three where people can see that someone's eaten this apple and it was actually really tasty and good for them. Is Doge just getting started?

Is this is a long-term enterprise? It's a long-term enterprise because if if we take our eye off the ball, the waste and fraud will come roaring back. They can doge when Democrats get back in power.

Uh yeah. Um yeah. Well, I think some of the things that like we're trying to have it be such that the the funding is is removed, so the grants are gone.

So there's it that there's a lot of work required to restart the waste and fraud and uh and that that will at least slow it down. Click here to subscribe to the Fox News YouTube page to catch our hottest interviews and most compelling analysis. You won't get it anywhere else.