PRESS RELEASE IN-DEPTH STORY

June 2, 2004

DSHS flouts the law...again

Braddock refuses to cooperate with Grant County Sheriff & Prosecutor

OLYMPIA – Fraud, obstruction, possible drug trafficking, and blatant disregard for law enforcement all amount to the state's Department of Social and Health Services (DSHS) ripping off taxpayers and putting kids at risk.

Since 2001, we have issued reports based on state auditor findings about the problems DSHS has passing important audits. For example, the department does not adequately verify the validity of payments made to child care providers. They throw away federal department warnings about recipients who are using falsified or stolen Social Security numbers to collect benefits.

Based on state audits, Grant County Sheriff Frank De Trolio and Prosecutor John Knodell realized fraud likely was being committed by individuals running day care facilities in the city of Mattawa, WA. Depending on seasonal migrant populations, Mattawa has a population of between 3,000 and 6,000...and 51 day care facilities. Of these, the Sheriff's preliminary investigation indicates criminal activity is likely in 40 facilities, but he needs further information from DSHS for ongoing investigation and prosecutions.

DSHS now refuses to cooperate with county law enforcement. Initially DSHS cooperated with the Sheriff and Prosecutor, leading to the conviction of Maria Celia de La O, an illegal alien who used another person's Social Security number to become a DSHS licensed and funded day care provider. Prosecutors could find no evidence that de La O had cared for any children. She was subsequently ordered to repay $242,000 to the state (which she has not done) and was later deported.

Since then, Sheriff De Trolio says DSHS has stopped referring fraud cases to the county prosecutor and has not provided requested documents necessary for additional prosecutions.

Randy Shaw of Spokane's KREM 2 broke part of the story last month. Shaw quotes Grant County Prosecutor John Knodell as saying, "These are crimes being committed and there's a massive amount of taxpayer money that's gone out the door. The Auditor's office seems to agree with that, yet we don't seem to get any interest from DSHS about doing anything about it."

Recent police raids have also indicated that drug activity is occurring at these day care facilities. In fact, an internal DSHS email obtained by KREM 2 indicates that DSHS has been aware of the fact that illegal aliens are running these day care facilities and that drug activity is present. An email obtained by KREM 2 reads in part: "A woman who gave licensors fake I-D because she's an illegal alien was endangering children by packaging and selling cocaine in their presence."

Frustrated with the lack of cooperation from DSHS, Grant County has been pondering the merits of subpoenaing the needed records from DSHS, but they worry about the fiscal impacts on the small county of going up against DSHS.

DSHS Secretary Dennis Braddock responded to Shaw's questions saying, "If it's a serious case, why doesn't he subpoena us?" However, DSHS' website states, "DSHS is willing to provide any other relevant records that the law enforcement agencies request. DSHS Secretary Dennis Braddock has offered to personally deliver any records that have not been provided."

The sheriff is still waiting for that request to be honored.

Thankfully, area legislators are now working to hold DSHS accountable. Sen. Joyce Mulliken, R-Ephrata, told us yesterday: "This issue goes to the core of government trust. Are we going to have an open, accountable government providing services to the public or are we going to settle for this ‘circle-the-wagons' response every time we have questions? Personally, I'm always a little skeptical when an agency feels like they have something to hide, and I am committed to seeing a thorough investigation where the whole truth can be brought to light."

Rep. Bill Hinkle, R-Cle Elum, echoed Mulliken's sentiment, "If there is fraud and a cover-up that DSHS is aware of, we stand the chance of losing millions of federal dollars. This may explain why DSHS has not been forthcoming with the requested records. If necessary, I will personally request from DSHS the documents needed for prosecuting those who violate our laws."

If DSHS does not provide the requested records to Grant County law enforcement and aggressively begin to recover the illegal day care payments by June 9, EFF will subsequently file a formal complaint with the U.S. Health and Human Services Department and the General Accounting Office for these violations of federal law.

"It is crystal clear what happens when audit findings are not decisively acted upon and agencies are not held accountable for violating our laws," said Jason Mercier, Budget Research Analyst for EFF. "Our foundation and the state auditor have warned for years that DSHS was routinely deleting federal alerts of recipients using fraudulent Social Security numbers, but DSHS sent payments anyway. Now we justly run the risk of losing millions of dollars of federal funding as a result."

Additional Information

KREM 2 May 6, 2004 - Grant County authorities say DSHS hampering criminal investigation into state licensed day cares

KREM 2 May 7, 2004 - State agency management knows about illegal aliens, drugs and day care fraud

DSHS response to KREM 2 - Setting the record straight on KREM-TV reporting about payments to child care providers in Mattawa, WA

SAO 2003 Statewide Accountability Report - Findings 03-02, 03-11, 03-12

Contact: Jason Mercier | Budget Research Analyst | 360.956.3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org