D S S P R E S S R E L E A S E
For Immediate Release:
August 31, 2006
Contact: Deborah Scott
(573) 751-4815
DSS Identifies and Refers $90,000 Potential Fraud Case
to St. Louis County Prosecutor for Evaluation
St. Louis - The Department of Social Services’ Welfare Investigations Unit (WIU) has completed its investigation into allegations of fraud by the owner of two St. Louis County preschool facilities. DSS investigators documented substantial evidence that potential fraud occurred and have referred the case to the St. Louis County prosecutor for evaluation.
The Welfare Investigations Unit receives referrals from the department’s internal monitoring staff who review the department’s many programs for potential waste, fraud or abuse. The investigation at the child care center was triggered by a call to the Family Support Division alleging that the preschools' owner was fraudulently claiming child care subsidy reimbursements for children not attending the facility.
The investigation found that benefits were claimed in excess of $90,000 for which there was no supporting documentation. The Department of Social Services has notified the facilities that their contracts are being terminated; the facilities served less than twenty children. Parents of the children enrolled at the facilities have been notified of the impending contract closures. Families needing assistance with child care arrangements are being assisted through the local child care resource and referral agency, Child Day Care Association.
“We continue to improve our efforts to root out fraud, waste and abuse,” said Steve Renne, Interim Department Director. “We will urge prosecution to the full extent of the law for those who abuse the system and misuse public resources, taking them away from those who need them most.”
In February, the Department of Social Services launched a new Contract Compliance Unit. The unit monitors departmental contracts for accuracy in recordkeeping and billing, helping to uncover and prevent potential fraud. Last year DSS also garnered over $138 million in savings in the Medicaid program through a cadre of efficiencies, waste, fraud and abuse prevention efforts.
