SOME DESPERATELY NEEDED CONTEXT: 

What began with Hawaii sewage-related corruption now flows into COVID and Medicaid fraud with no end in sight. 

Just 16 days after the abrupt resignation of former State Rep Ryan Yamane as Director of the Hawaii Department of Human Services, Governor Josh Green is implanting California-based Democrat trial lawyer, Mike Purpura, as head of a DHS-based 'Strike Force,' to gin up some quick Medicaid fraud show-trials. 

The goal is to placate the feds so they don't dig deeper into Hawaii's thoroughly criminal political class.

Ironically, Both State and Federal auditors investigating the Hawaii AG's Medicaid Fraud Control Unit have noted the lack of Medicaid fraud referrals from DHS as a key problem over 12 years of increasing failure.

Akamai readers will remember that Yamane resigned with zero notice after being questioned by State Attorney General investigators looking in to the $35K brown-paper-bag legislative bribery case. 

While in the House, Yamane chaired the House Health and Human Services Committee.  As such, he should have been eligible for a $10K bribe, like ousted Lt Gov Sylvia Luke who admits receiving $10 in 'campaign contributions' as Chair of the House Finance Committee.  The identity of the higher-ranking $35K bribe recipient remains unknown, but the math leads to a short list of obvious suspects.

Meanwhile the Honolulu Council and Mayor are tussling over reductions to the Honolulu 'Economic Revitilization' Office, whose main function was to distribute COVID money.  The US SBA, April 24, 2026, identified 562,000 suspected fraudulent COVID loans.  On a per-capita basis, that would mean 2,300 fraudulent COVID loans in Hawaii.

Maybe this is what is meant by 'detecting COVID in the sewage?'

1. 2026: DHS at Center of Secret Multi-Million Dollar Medicaid Fraud Case – sealed by Court
2. 2026: Another Big Fish: $35K Bribery Investigation Bags Ryan Yamane, Resigns as DHS Director
3. 2026: VP Vance: Hawaii has 'not taken Medicaid fraud seriously'
4. 2026: AG: Feds Investigated our Medicaid Fraud Prosecutions in April
5. 2026: $35K Bribe: How Luke Donor and Caldwell Cronies Cashed In On City-Funded COVID Testing Program at Airport
6. 2026: Feds Investigating 562,000 Fraudulent COVID Loans

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GOVERNOR GREEN TAKES ACTION ADDRESSING FEDERAL MEDICAID FRAUD UNIT DECISION

Independent Strike Force Formed

News Release from Office of the Governor, June 4, 2026

HONOLULU — Governor Josh Green today announced the creation of an independent Medicaid Fraud Strike Force within the Hawaiʻi Department of Human Services (DHS) to strengthen oversight, accountability and coordination in the fight against Medicaid fraud, waste and abuse. The strike force will support and build upon the work of Hawaiʻi’s existing Medicaid Fraud Control Unit (MFCU).

The announcement follows a federal decision regarding the MFCU, which is administered by the Department of the Attorney General. State officials emphasized that the action does not affect Medicaid eligibility, benefits, services, or federal funding for Hawaiʻi’s Medicaid program. Hawaiʻi’s Medicaid program, administered by Med-QUEST, remains in good standing with the Centers for Medicare & Medicaid Services (CMS).

“The findings outlined by the Office of Inspector General are serious and deserve a serious response,” said Governor Green. “Hawaiʻi takes Medicaid fraud seriously. Even before receiving this letter, we were taking steps to strengthen oversight and accountability through the creation of an independent Medicaid Fraud Strike Force within DHS. Our goal is straightforward: protect vulnerable residents, safeguard taxpayer dollars and ensure every available tool is being used to identify and address fraud, waste and abuse.”

The strike force will be supported by Mike Purpura, an experienced legal professional with significant Hawaiʻi experience, a former federal prosecutor and former White House Deputy Counsel. He brings extensive expertise in complex investigations, fraud enforcement and coordination with federal law enforcement agencies and federal partners.

Working in coordination with the MFCU, DHS, other state agencies, health plans, law enforcement and federal partners, the strike force will help identify waste, fraud and abuse, recommend corrective actions, assist in the recovery of taxpayer dollars where appropriate and strengthen systems designed to protect Medicaid recipients and public funds.

“The Medicaid program provides essential healthcare coverage to hundreds of thousands of Hawaiʻi residents and we want our members, providers and community partners to know that their benefits and services will continue without interruption,” said DHS Director Joseph Campos II. “At the same time, we welcome opportunities to strengthen program integrity and accountability. The Medicaid Fraud Strike Force will help ensure Hawaiʻi is using every available resource to protect public funds, while preserving access to care for those who depend on Medicaid.”

Following discussions with CMS officials, DHS has been informed that Hawaiʻi’s Medicaid program remains in good standing and that this action does not affect eligibility, benefits, provider payments, or federal Medicaid funding.

The strike force will provide a report to the Governor by December 31, 2026, detailing actions taken, findings, opportunities to strengthen enforcement and oversight and recommendations to improve the detection, investigation and prosecution of Medicaid fraud and patient abuse.

“We welcome collaboration with our federal partners and share the common goal of protecting taxpayers, safeguarding vulnerable residents and preserving Medicaid for those who rely on it,” Governor Green said. “This effort is about restoring confidence, improving accountability and ensuring Hawaiʻi meets the highest standards of program integrity.”

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DEPARTMENT OF THE ATTORNEY GENERAL TO SEEK RECONSIDERATION OF U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES DECISION REGARDING MEDICAID FRAUD CONTROL UNIT

News Release 2026-30 from Department of the Attorney General, June 4, 2026

HONOLULU – The Department of the Attorney General today issued the following statement in response to the U.S. Department of Health and Human Services’ (HHS) decision regarding federal funding for Hawaiʻi’s Medicaid Fraud Control Unit:

The Department of the Attorney General remains committed to protecting Medicaid beneficiaries, safeguarding public funds, and holding accountable those who commit fraud, abuse, or neglect.

We recognize the seriousness of the HHS’s concerns and are treating this matter with the urgency it deserves. The Department has mobilized additional personnel and resources from across multiple divisions to conduct a comprehensive review of the findings, prepare a formal response, and pursue all available avenues to preserve and strengthen Hawaiʻi’s Medicaid fraud enforcement efforts.  We intend to seek reconsideration of HHS’s decision and will continue working closely with our federal partners to address concerns and demonstrate the full scope of the Medicaid Fraud Control Unit’s work.

While recent federal correspondence and media reports have focused heavily on criminal case numbers, they do not fully reflect the work performed by Hawaiʻi’s Medicaid Fraud Control Unit. Since 2021, the unit has secured or helped secure more than $14 million in judgments, settlements, and recoveries, pursued civil enforcement actions, investigated allegations of provider fraud, and prosecuted cases involving the abuse and neglect of vulnerable individuals.

Medicaid fraud enforcement is not measured solely by convictions. It includes preventing fraud, recovering taxpayer dollars, protecting beneficiaries, and pursuing appropriate civil and criminal remedies based on the facts and the law.

We strongly disagree with any suggestion that Hawaiʻi has failed to take Medicaid fraud seriously. The Department will continue working to strengthen enforcement efforts, protect public resources, and ensure accountability for those who abuse the Medicaid program.

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