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Several weeks ago, The Baltimore Spectator reported on welfare cash being withdrawn at casino ATM's.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Besides the $12,000 recently discovered being withdrawn at the strip clubs, the casinos saw millions in welfare money come out of their cash machines.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Nearly $4.8 million has been withdrawn from ATMs at casinos and poker rooms with welfare benefits cards from 2007 through June, according to state officials. The vast majority of that, $4.4 million, was withdrawn at tribal casinos.

FUNDING FRAUD -- CA Gov. Schwarzenegger Bans Welfare Cards At Casinos

Could This Happen In Maryland?

An LA Times special report revealed welfare recipients in California had withdrawn nearly $2 million dollars since October, at casino ATM's using state issued welfare debit cards .

Apparently the report only has figures from that point, but one has to wonder how widespread has the abuse been. How much money did this cost the already broke and bankrupt California revenue system.

Reacting to the report, Gov. Arnold Schwarzenegger issued an executive order banning such use. For the time being the Governator will have to rely on the honor system for compliance. Apparently the technology is not readily in place to bar ATM withdrawals from casino ATM’s. The order asked welfare recipients to sign a pledge stating they will only use public assistance money to purchase basic family necessities.

Will be interesting to see what happens next. Since card holders can simply go to say a 7-11 ATM across the street, withdraw some cash, THEN go to the casino, the order seems virtually unenforceable.

I can't help but wonder if such a future awaits the soon coming Maryland slots and gaming? What am I thinking, it's already happening. Half the people clogging up the line at my local corner store buying scratch offs are no doubt on welfare.

Truly, one can get upset thinking of your taxpayer dollars paying for others to gamble with, but get real. What do you think you're government's doing every day?

Gotta love it!

Photo courtesy of the Sandoval Signpost