08 July 2010

BARE NECESSITIES: Welfare Recipients Get Cash At Strip Club ATM's

Widespread Welfare Fraud Easily Committed Despite Cash Strapped State Govt.

It's well understood that welfare cash is meant to pay for essential necessities, but a lap dance at a strip club?  While it can be argued that for some, this is a much needed service, this story shows the problem when welfare is doled out and not properly accounted for.  

Several weeks ago, The Baltimore Spectator reported on welfare cash being withdrawn at casino ATM's.

Reminds me of stories you hear about women using child support to pay for hair and nails and other things having nothing to do with the kids, but that's another story.

While the story is set in California, it's should serve as a cautionary tale to fiscally constrained governments across the land.  YES, this can happen where you live.  Chances are, it's already happening in one shape or form.

Besides the $12,000 recently discovered being withdrawn at the strip clubs, the casinos saw millions in welfare money come out of their cash machines.  And this is just what is currently known about.  Keep in mind these figures were produced by government accountants.  The actual figure could be fare worse.

Nearly $4.8 million has been withdrawn from ATMs at casinos and poker rooms with welfare benefits cards from 2007 through June, according to state officials. The vast majority of that, $4.4 million, was withdrawn at tribal casinos.