Malia Cohen took office as California State Controller on January 2, 2023, promising to be the state's fiscal watchdog. Her first term has instead been defined by audits her office acknowledged it never conducted, chronically late state financial reports, findings from the State Auditor about her own office, and a federal lawsuit over how it seizes and sells unclaimed property.
A Democrat from San Francisco, Cohen previously served on the State Board of Equalization and the San Francisco Board of Supervisors. She is seeking a second term on November 3, 2026, against Republican Herb Morgan, a former chief investment officer.
The audits that were promised but not done
As a candidate in 2022, Cohen told CalMatters she would scrutinize the Employment Development Department, the DMV and the state's homelessness programs. "I'm watching and I am going to keep people accountable," she said.
Four years later, her office told the Los Angeles Times it had never conducted the homelessness audits. Cohen said her office asked the governor and the state for money to do them and was denied. Her office later clarified that the request was for high-risk audit investments generally and did not specifically mention homelessness. Cohen also acknowledged she had not reviewed the DMV or EDD, saying other bodies were already auditing them.
The same Times report described a secret recording made by the conservative group O'Keefe Media, in which Cohen's press officer reportedly said the office's audit team had been cut and lacked resources for proactive audits. Cohen called the recording illegal and declined to comment on it.
Late financial reports and a fight with the State Auditor
California's Annual Comprehensive Financial Report, the document credit rating agencies rely on, has been published months late for years. The problem has sat on the State Auditor's high-risk list since 2020. Cohen has blamed other departments for slow data.
A 2025 letter from the State Auditor accused her office of spending more than a year resisting an independent review, according to the Times. Cohen disputes that account. When the review was finally completed, the KPMG performance audit (report 2025-602) identified communication problems and unclear roles between the Controller's Office and the Department of Finance as a root cause of the delays, alongside missing GAAP guidance and late submissions from departments.
Findings inside the Controller's own office
An October 1, 2026 investigative report from the California State Auditor (report I2026-1) found that the Controller's Office failed for more than a year to collect over $33,000 in salary overpayments made to two employees whose pay was set above the CalHR maximum. A Human Resources manager ordered a payroll deduction canceled, and as of May 2026 nothing had been collected. The auditor concluded the office violated state law.
The same report found two staff services managers had lived and teleworked out of state while their signed telework plans listed California addresses, one from Idaho for about five years and the other from Alabama and Tennessee. The auditor said the office did not monitor telework locations. The Controller's Office disputed that it broke the law on the overpayment and said both managers have since left.
Unclaimed property: a federal lawsuit and money left unreturned
The Controller holds roughly $15 billion in unclaimed property. A CBS News California investigation found the state was sitting on at least $1.3 million owed to children's hospitals and at least $95,000 owed to food banks. Asked about the findings, Cohen said, "We are going to go fact check your facts." In 2025 the office took its claims system offline for a system transition that paused claim evaluations.
Foreign and out-of-state investors have since filed a federal class action in Los Angeles naming Cohen, along with contractors Kroll and Kelmar Associates. The plaintiffs allege the office altered owners' addresses to make their holdings appear connected to California so the state could seize and sell their stock. One plaintiff's address was allegedly changed from Cardiff, United Kingdom, to "Cardiff, CA 00000," according to Hoodline. Another alleges the state seized and sold $708,641.22 of his retirement stock without notice.
The suit, described by the Southern California Record, seeks a preliminary injunction halting the seizures. These are allegations that have not been decided in court. Cohen's office did not respond to requests for comment.
Donors with business before the office
Cohen had raised about $1.88 million for her reelection as of late September, according to the CalMatters campaign finance tracker. Two individual donors come from the unclaimed property industry her office regulates and contracts with. James Hartley, who gave $14,987, co-founded Verus Analytics, a state unclaimed property recovery firm acquired by Kroll in 2020. Lynden Lyman, who gave $9,800, is an executive consultant at Kelmar. Kroll and Kelmar are both named alongside Cohen in the unclaimed property lawsuit.
Building trades unions are also among her largest backers, led by Steamfitters Local 250 at $39,200. In June the political action committee of the California Council for Affordable Housing hosted an event for Cohen at its Napa conference, which the group said let attendees "engage directly with Controller Cohen." As Controller she casts a vote on the California Tax Credit Allocation Committee, which awards low-income housing tax credits. A contribution alone does not establish influence over any decision. Learn more about Malia Cohen and her record.
Frequently asked questions
Who is Malia Cohen?
Malia Cohen is California's State Controller, in office since January 2, 2023. She previously served on the State Board of Equalization and the San Francisco Board of Supervisors. She is running for reelection in 2026.
Did Malia Cohen audit California's homelessness programs?
No. Her office told the Los Angeles Times it never conducted the homelessness audits she promised in 2022. Cohen said a funding request was denied, and her office later clarified the request covered high-risk audits generally, not homelessness specifically.
What is the unclaimed property lawsuit against Malia Cohen?
A federal class action filed in Los Angeles by foreign and out-of-state investors alleges her office altered owners' addresses to seize and sell their stock under California's unclaimed property law. Kroll and Kelmar Associates are co-defendants. The claims are allegations and have not been decided.
What did the State Auditor find about the Controller's Office?
Report I2026-1 found the office went more than a year without collecting over $33,000 in salary overpayments and did not monitor managers who teleworked from other states. A separate KPMG review tied late state financial reports partly to communication problems between the Controller's Office and the Department of Finance.
Who is running against Malia Cohen in 2026?
Republican Herb Morgan, a retired chief investment officer and founder of Efficient Market Advisors, faces her in the November 3, 2026 general election.