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The state auditor recently found issues in the controller’s office, including failing to recover overpayments to public employees and tracking remote workers improperly. Now, a private lawsuit claims the controller's office manipulates addresses of individuals abroad to seize their assets, with one example listing Cardiff, Wales as Cardiff, California. The article criticizes State Controller Malia Cohen for her handling of these issues, suggesting it undermines trust in state financial management and could affect investor confidence.
Written locally by qwen2.5:14b on 2026-10-10,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
The California State Controller's office has come under scrutiny after failing to recover overpayments to public employees and improperly tracking remote workers living out of state, according to findings by the state auditor. Recently, a private lawsuit alleged that the controller's office manipulated addresses to seize assets from individuals with no connection to California. For example, the office listed the city of Cardiff in Wales as Cardiff, Calif, which is located in San Diego County. This practice exploits California’s broad definition of residency for tax purposes, allowing the state to collect money from those who have minimal connections. The issue highlights concerns over excessive taxation and the misuse of power by state officials, potentially impacting foreign investors and wealthy individuals fleeing proposed taxes like the "billionaire tax."
Written for “Malia Cohens Office Issues” on 2026-10-10,
grounded in this article and the 0 other(s) covering the same event.
Why this leaning score
The model judged this article politically coded and scored it -0.65, but every quote it verified points right, so the score is not published.
Written under an earlier scoring contract, which gave a paragraph
rather than checkable quotes. Re-analysing this article replaces it.
Leaning score withheld for article 69794: score contradicts its own evidence · logged 2026-10-10
Earlier this month, the state auditor found that the controller’s office had failed to recover overpayments to public employees, and that it failed to keep track of remote employees who were living out of state, in violation of the law.
asserted
who → find → law
Now, as The California Post reported exclusively, a private lawsuit accuses the controller’s office of fudging addresses so that it can seize the assets of people abroad with no connection to California.
asserted
it → report → California
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asserted
Report → start → news
Foreign investors were stunned to find their financial assets taken by the controller based on faulty addresses.
asserted
assets → stun → addresses
In one case, the controller’s office appears to have listed the city of Cardiff, Wales, as Cardiff, Calif., a beach community in San Diego County.
asserted
office → appear → County
California is notorious for considering almost anyone who has any contact with the state to be a “resident” for tax purposes, so it can force them to pay money into the state coffers.
asserted
it → consider → coffers
No doubt some of the wealthy former Californians who are fleeing the potential “billionaire tax” have a tough fight ahead.
asserted
who → flee → fight
But that’s peanuts compared with allegedly faking local addresses.
uncertain
that → ’ → addresses
And for a state that touts itself as the startup capital of the world, it’s a bad look to treat investors — foreign or domestic — as targets for manipulation, abuse and theft.
asserted
it → tout → manipulation
Cohen has pushed back against the idea that there is a major fraud problem in California.
asserted
Cohen → push → California
She wants voters to trust her with a second term, while reports come out seemingly every week about the latest fraud scandal in the state.
asserted
reports → want → state
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The state controller should not be trying to put a brave face on government failure, but rather leading the fight.
asserted
controller → download → fight
Instead, Cohen has left the job of enforcing accountability to the federal government — and to citizen journalists like Nick Shirley.
asserted
Cohen → leave → Shirley
Cohen’s Republican opponent in the November election, Herb Morgan, says that Cohen is incompetent, and lacks the judgment to be the state’s most important financial official.
asserted
Cohen → say → judgment
Whether that is true or not will be up to the voters to decide.
asserted
is → decide → voters
Regardless, Cohen’s failures aren’t some kind of political “October surprise,” hyped by her political opponent.
asserted
failures → hype → opponent
The problems are coming out because they are impossible to suppress any longer.
asserted
they → come → ?
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