District Attorney Attributes $2 Million Loss to 21 People Facing Welfare Fraud Charges

District Attorney Attributes
$2 Million Loss to 21 People
Facing Welfare Fraud Charges

July 24, 2008
FOR IMMEDIATE RELEASE
Contacts: Joe Scott, Director of Communications
Sandi Gibbons, Public Information Officer
Jane Robison, News Secretary
Shiara Dávila, Assistant PIO
(213) 974-3525

LOS ANGELES – At a news conference today, District Attorney Steve Cooley announced criminal filings against 21 men and women believed to have collectively defrauded taxpayers out of more than $2 million in public assistance funds.

Of those defendants, 12 were arrested early this morning in a countywide welfare fraud sweep by investigators of the California Department of Health Care Services, the District Attorney’s Bureau of Investigation and special agents of the Social Security Administration, Office of the Inspector General.

“Welfare fraud continues to plague our public assistance programs,” Cooley said. “This type of fraud can be prevented at the front end and the 2007-2008 Los Angeles County Civil Grand Jury report outlines several significant measures to root out the parasites bleeding our welfare system.”

At the District Attorney’s request, the 2007-2008 Civil Grand Jury explored the susceptibility to fraud of In Home Supportive Services (IHSS), a $1.6 billion program for the elderly and disabled administered by the Los Angeles County Department of Public Social Services.

The grand jury recommended fingerprinting, photographing and conducting criminal background checks of recipients and providers; enhanced computer technology for the purpose of cross-referencing program participants; and periodic reassessments of the recipient’s actual needs.

“One of the Civil Grand Jury recommendations that would surely mitigate the problem of welfare fraud is fingerprinting,” Cooley said. “It is ironic that while the state Legislature has repeatedly introduced legislation to limit fingerprinting, the grand jury has recommended just that in order to mend this broken system.”

“As the 2007-2008 Civil Grand Jury noted in its current report, ‘[The In Home Supportive Services program] helps the truly needy, the thought-to-be needy and, in some cases, inadvertently supports criminal behavior,’” he added. “Our investigation identified one provider who was wanted on an arrest warrant for murder and a second provider who had a prior conviction for robbery. I doubt that a legitimate IHSS recipient would want either of these providers caring for them.”

At the news conference, Karen Johnson, chief deputy director of the Department of Health Care Services, lauded the work done by investigators and spoke of the need for more stringent administrative oversight of public assistance programs.

“We have a zero tolerance policy for fraud, waste and abuse, and any loss of Medi-Cal funds due to such actions is unacceptable,” Johnson said. “Our investigators' work with Mr. Cooley’s office and our other partners was critical to identifying these IHSS fraud cases and taking strong, appropriate action. We will continue our partnerships with local, state and federal agencies to aggressively fight fraud in the state’s vital health care programs.”

James Cosper, head deputy district attorney of the Welfare Fraud Division, said an emerging trend was identified in the cases filed.

“We’ve identified numerous cases where aid recipients and providers are receiving money under different identities,” Cosper said. “That is, these criminals pose as provider and recipient of IHSS care and access benefits from other aid programs such as Welfare, Section 8 and Social Security Income (SSI). Had the simple process of fingerprinting and photographing been in place, most of the loss attributed to these defendants could have been avoided.”

Among those facing welfare fraud charges are Kim Johnson, 40 (dob 01/14/68), James Earl Brown, 40 (dob 09/24/67), and Jacqueline Hervey, 45 (dob 04/12/63). The three are accused of defrauding the State of California In Home Social Services program, the Los Angeles County Housing Authority and the Social Security Administration out of $417,513.

Johnson of Palmdale and Brown and Hervey of Lancaster are charged in case No. BA343208 with various felony counts including conspiracy to commit a crime, grand theft of personal property and aid by misrepresentation.

While receiving $194,000 in IHSS for 24-hour protective supervision due to a so-called disability, Johnson was seen driving a Cadillac Escalade by investigators. Prosecutors further allege that with the profits that Johnson and her co-conspirators received, along with $100,000 in Section 8 benefits, they were able to purchase a home in the Antelope Valley.

Also facing charges in unrelated cases are:

Janice Devon Jones, 52 (dob 11/23/55), and Lee Arthur McPhearson, 65 (dob 08/14/42), of Los Angeles. Jones and McPhearson, who are charged in case No. BA343512, are accused of defrauding the State of California In Home Social Services program and the Los Angeles County Housing Authority out of $335,735.

Prosecutors allege that Jones used an alternate name to bilk welfare and Section 8, while providing bogus IHSS services to the father of her children. McPhearson faces a single count of grand theft of personal property, while Jones is charged with 12 felony counts including grand theft of personal property, aid by misrepresentation, perjury by false application for aid and identity theft.

Mary Alvarez, 66 (dob 01/19/42), and Jose Isabel Flores, 46 (dob 11/08/61), of Maywood are charged in case No. BA343776 with various felony counts including grand theft of personal property, false statements to receive health care, presentation of fraudulent claim and perjury by application for identification card.

Alvarez allegedly used two identities to receive double the IHSS and SSI benefits. Flores – her supposed service provider – pretended to care for Alvarez under both identities. Alvarez and Flores are accused of defrauding the State of California In Home Social Services program, State of California Medi-Cal, State of California Denta-Cal and the Social Security Administration out of $306,106.

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