D S S P R E S S R E L E A S E
For Immediate Release:
February 27, 2006
Contact: Deborah Scott
(573) 751-4815
DSS Refers $600,000 Fraud Allegation to Prosecutor
Jefferson City - The Department of Social Services (DSS) is continuing its aggressive pursuit to identify waste, fraud and abuse in social welfare programs. The department's Welfare Investigation Unit has referred a case of potential recipient fraud to the U.S. Attorney's office wherein the beneficiary has allegedly defrauded the state and federal governments for over $600,000.
Governor Matt Blunt commended the Department for its ongoing efforts to detect inappropriate and fraudulent expenditures. "DSS administers many critical programs. Hard earned tax dollars should be used as they were intended. I want to thank DSS employees for the hard work they are doing to recover misspent funds and channel them back to support vital services," Blunt said.
The investigation was first launched by the DSS Welfare Investigation Unit, which then notified the appropriate federal authorities and U.S. Attorney's office when it became evident that federal funds were also involved. The case involves payment of benefits from multiple programs including the Medicaid and Food Stamps programs administered by DSS, as well as other federal programs. The bulk of the payments were made for medical services on behalf of the recipient, who appears to have hidden numerous assets in order to obtain benefits.
“Some contend that fraud is primarily a provider issue, but this case clearly shows that we must continue to identify all individuals intent on misusing social welfare programs for personal gain," said Gary Sherman, Department Director. "Our efforts to root out exploitation will allow us to recoup losses and reinvest the dollars to serve those truly eligible.”
DSS is seeking restitution for wrongfully obtained payments in this case for over $600,000. Other recent referrals for possible prosecution have included a case in Southwest Missouri where DSS closed contracts with eight child care facilities for inappropriate billing practices, and a case referred last week in St. Louis involving contract employee/s who allegedly conspired to make false payments in the amount of $90,000 to dummy corporations for services purportedly performed for foster children.
"If individuals are intent on cheating, they can be quite creative in their efforts. What they need to know is that we are working harder than ever before to ferret out dishonesty, waste, fraud, abuse and inefficiencies," Sherman said. "We are going to come to work every day and do our very best to safeguard tax payer dollars and see that they are spent as they were meant to be."
