Few issues unite Oregonians across political lines like fraud. In Episode 40 of the Oregon D.O.G.E. podcast, Senator Mike McLane and Representative Shelly Boshart Davis sit down with investigative journalist Jeff Eager to examine disturbing allegations involving Medicaid fraud, criminal gang activity, and systemic stonewalling by state agencies.
At the center of the discussion is a company called Uplifting Journey — a for-profit residential treatment provider that received at least $2.3 million in direct Medicaid reimbursements from the state of Oregon in less than one year. That figure alone raised eyebrows. What followed raised alarms.
A Trail of Red Flags
According to Eager’s reporting, properties operated by Uplifting Journey in Lake Oswego and Gresham were the subject of repeated police calls, suspicious activity, unpaid staff, and eventual eviction. Yet the money kept flowing.
More troubling still: the Lake Oswego property was later identified in court documents as housing members of Tren de Aragua, a violent Venezuelan transnational gang tied to human trafficking, drug operations, and attempted murder in Washington State. One victim survived a brutal attack only long enough to expose the connections that ultimately led investigators back to Oregon.
The Arizona Connection
The investigation uncovered another unsettling link: a Phoenix-based pastor indicted in Arizona for laundering millions of dollars tied to a massive Medicaid fraud scheme allegedly co-signed leases for the Oregon operation. While Oregon officials insist no conclusions should be drawn, the pattern mirrors major Medicaid fraud cases in Minnesota and Arizona — where billions were lost due to lax oversight and political reluctance to intervene.
The Oversight Gap
Perhaps the most damning revelation is what isn’t known. Roughly 95% of Medicaid funds in Oregon flow through Coordinated Care Organizations (CCOs) — nonprofits not subject to public records laws. That means taxpayers and legislators alike are largely blind to how the majority of funds are spent.
Even for the $2.3 million paid directly by the state, the Oregon Health Authority admitted it could not produce invoices or documentation showing what triggered the payments.
Stonewalling and Silence
When lawmakers and journalists asked for answers, they were met with boilerplate responses, accusations of bias, and refusals to confirm whether any investigation is underway. State agencies declined to explain how background checks were conducted — or whether they were conducted at all.
As McLane explains, this is the reality of one-party control: legitimate inquiries are delayed, deflected, or ignored.
Why This Matters
Fraud doesn’t just waste money — it diverts resources from people who genuinely need care. It erodes trust, inflates costs, and rewards criminal behavior. And when fear of political backlash prevents oversight, the system becomes unsustainable.
The episode closes with a sobering conclusion: without transparency, accountability, and leadership willing to ask hard questions, Oregon’s Medicaid system remains vulnerable — and taxpayers remain in the dark.