Government

Over $11 Million in California Welfare Funds Spent in Vegas Casinos

Millions more were spent in Hawaii, Miami, Guam and elsewhere.  In all, the LA Times has learned that $69 million in California welfare funds meant to help the needy have been spent outside the state in recent years on a variety of luxuries, including Las Vegas slot machines, Hawaiian vacations and cruise ships sailing from Miami.

Round-trip flights from Los Angeles to Honolulu on Orbitz.com Sunday started at $419 — more than 80% of the average monthly cash benefit for a single parent of two on CalWorks, the state’s main aid program.

“How they can go somewhere like Hawaii and be legit on aid … they can’t,” said Robert Hollenbeck, a fraud investigator for the Fresno County district attorney’s office. “This is money for basic subsistence needs.” …

Of the nearly $12 million accessed in Las Vegas, more than $1 million was spent or withdrawn at shops and casino hotels on, or within a few blocks of, the 4.5-mile strip. The list includes $8,968 at the Tropicana, $7,995 at the Venetian and its Grand Canal Shoppes, and $1,332 at Tix 4 Tonight, seller of discount admission for such acts as Cirque du Soleil.

Although many Las Vegas casinos block the use of welfare cards in ATMs on gambling floors, more than $34,700 has been spent or withdrawn from the ATM at a 7-Eleven in the shadow of Steve Wynn’s new Encore casino and a couple of blocks south of Circus Circus. …

The data show addresses of stores and ATM locations where the cards have been used and the amounts of the transactions by year. They do not reveal the identities of the welfare recipients or show how many users visited a given retailer.

Of the $1.5 million accessed in Florida, $13,109 was spent or withdrawn in South Beach, most of that at bars and restaurants along trendy Lincoln Road. More than $7,000 was withdrawn from ATMs a few hours north, at Walt Disney World.

The data also show $16,010 withdrawn from 14 cruise ships sailing from ports around the world — Long Beach, Rio de Janeiro, Beijing. Eight sail primarily from Miami.

This out-of-state spending accounts for less than 1 percent of the state’s $10.8 billion welfare fund, but repeated abuses have raised questions among fraud investigators.  ”If it’s a one-time thing in Miami, we would never check that out,” said John Haley, commander of the financial crimes division of the San Diego County district attorney’s office, who said 24% of all new welfare applications in his jurisdiction contain some form of fraud. “We look for patterns of abuse.”

Comments (121)

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  • nkawtg
    Posted on October 4, 2010 at 7:06pm

    When people believe the Government OWES them, this is what happens.
    As long as they have a sense of entitlement, they will do what ever they want.
    Why should they get jobs, when they live off the Government tit.

    Report Post » nkawtg  
  • Waiting4George
    Posted on October 4, 2010 at 7:03pm

    Time to impose lifetime benefits. When you max out you’re done.

    Report Post »  
    • CADINO
      Posted on October 4, 2010 at 7:47pm

      ..they would just “pop” out another baby, per usual.

      Report Post »  
  • MrKnowItAll
    Posted on October 4, 2010 at 7:02pm

    Here in Michigan we have GREEDY Party Store Owners who let people buy Cigarettes and Alcohol with Food Stamps. I just turned one in a few Months ago. All they did was Ban the two Guys working that were doing it from the store. Now the New Guys break the Laws by the way that they care less about who is cashing who’s checks. Just as long as they get 6-8% for cashing them. Things are out of hand. Because all they ever get is a Slap on it. Anyone remember the Millions of Dollars in Government Food that was meant for the poor Spoiling in a Detroit Warehouse? Boy! They took that out of the LimeLight so quick it made my head Spin.

    Report Post » MrKnowItAll  
  • louzyana
    Posted on October 4, 2010 at 7:00pm

    Ok, color me ignorant, but… our government hands out debit cards with no restrictions on how the money is to be spent??? I mean, I’m familiar with food stamp cards, rent vouchers, and such, but under what circumstances would someone qualify for generic money from our government? Under what program do you qualify for walking around money?

    Report Post »  
  • pajamash
    Posted on October 4, 2010 at 7:00pm

    This is rediculous. The technology exists to limit spending on these cards. Each type of service is given a number called a Merchant Catagory Code.

    See a list of MCC Codes:

    http://www.mrsc.org/govdocs/p58mcc_codes.pdf

    The card companies have the ability to limit the type of purchases to certain MCC codes. Why are these credit cards being used without limitations on the types of services?

    Report Post »  
  • nordspan
    Posted on October 4, 2010 at 6:54pm

    Are you kidding me, this thing happens everywhere. My husband and I have started donating time in our community to assist the “un-employed” by delivering food, clothing etc for charitable organizations, and we’re sent to “assess” needs when requests come in, and more often than not (I am so sorry to say) there is such abuse.

    We’ve entered apartments that are better furnished, stocked with food, new clothing bags, iPods and the best of the large plasma 60 screens with the Wii attached and all of the games beside, and the couple is requesting food so they “don’t have to pay that bill” than what we work hard to earn.

    We’ve delivered brand new beds, mattresses and linens, and the recipients don’t even thank us, and almost before we‘re out the door they’ve knocked on the neighbors door to “trade the goods” for their drug habit.

    Seriously. This is an actual testimony that I’ve seen it personally being abused. I’m sorry if you are in need, but this system makes the abuser so empowered by teaching them the options that they practically jwork harder going between charities to gain personal increase without paying a dime in taxes or working a minute during the day.

    If the majority of those “in need” were to show us they needed help by say, ummm….. selling off that brand new car and toys, turning off the cable, what about telling the kids no to a cell phone for all 4 of the kids in the house, actually going to the community to serve when you‘re unemployed and for what ever reason it is obvious that you’re not working during the day.

    Our four neighborhood shelters teach the motto of “self sustaining” and “being independent” and then give those “in need” a dozen or more resources to gov‘t assistance programs that insure that these people get involved in them so they don’t have to ever work. This is wrong.

    I agree that there are many people that must stay at home, and there are those that aren’t able to work, but that seems to be the minority not the majority. What about my meeting a 20 year old girl that said, “My mom told me you could give me rent,” and when we asked her why she isn’t working, “the hamburger joint won‘t pay me what I’m worth so I want my fare share of charity. Obama promised it.”

    And these are the voters that support him.

    Report Post »  
    • dallenh
      Posted on October 5, 2010 at 8:45am

      So true and so sad…
      Those on food stamps who work the system eat better than most who are not on the system. Buying the grocery cart full of food, steaks, etc. while never stopping from talking on their iPhone which carries such a high monthly bill.
      They want to tax the rich who already pay the highest amount so they can continue in their sponge lifestyle. Welfare reform is needed. I would support the government hiring more workers to flush out those abusing the welfare system, but instead we get 16000 more IRS workers to penalize citizens who don’t conform to the new health care unconstitutional laws.

      Report Post »  
  • SATX 19
    Posted on October 4, 2010 at 6:50pm

    Came across a woman in TX, where the welfare card is called “Lonestar”. At almost every transaction, she would cash out an extra $20. She would take this $$ and put it in a drawer at home. Soon enough she was able to BUY A TRUCK, using welfare $$. Used the truck for a bit, THEN SOLD IT and kept the cash.
    What happened to the days of making them come to the office and pick up an actual check? Force them to actually live off what is given to them. You don’t like it….get the hell off of welfare!!!

    Report Post » SATX 19  
    • GOTT-EM-MAUSER
      Posted on October 4, 2010 at 9:18pm

      Ah Yes, the good old Lonestar Card. On many a trip to the Grocery store I have had the pleasure of checking out behind the Lonestar Card users. Card for the groceries, cash back to pay for the Smokes and Beer. French Nails, new tramp tatts, and lotsa Bling piercings. Then out into the parking lot to pile into the $50,000.00 SUV. Back to the Section 8 Casa to watch Opra and learn just how bad off they really are. They best enjoy it. When the bottom finally comes plumb outta this Circus of an Economy, things are gonna get real ugly, real fast.

      Report Post »  
  • asmith
    Posted on October 4, 2010 at 6:50pm

    I see two sides of this story. On the one hand this is just California’s wealth redistribution. You take billions of dollars from hard working Californians give it to welfare mama‘s the welfare mama’s take it to the casino so one luck gambler can win millions in quarters. On the other hand the best way to gamble is with other peoples money. That way you don’t have to worry if you loose. But if they win they think that they diserve the money they won on California’s dime.

    Report Post »  
    • Punky
      Posted on October 4, 2010 at 11:09pm

      Seems like there is a lot of gambling with other people’s money going on these days.

      Report Post »  
  • rolandg79
    Posted on October 4, 2010 at 6:40pm

    Not suprised!

    Report Post » rolandg79  
  • cubanbob
    Posted on October 4, 2010 at 6:39pm

    A guy walks into the local welfare office, marches straight up to the counter and says, “Hi . . You know, I just HATE drawing welfare I’d really rather have a job.” The social worker behind the counter says, “Your timing is excellent. We just got a job opening from a very wealthy old man who wants a chauffeur / bodyguard for his 18-year-old nymphomaniac daughter. You’ll have to drive around in his Mercedes, and he’ll supply all of your clothes. Because of the long hours, meals will be provided. You’ll be expected to escort her on her overseas holiday trips. You’ll have an adjoining room. The starting salary is $200,000 a year.” The guy says, “You’re bull@@@tting me!” The social worker says, “Yeah, well, you started it.”

    Report Post » cubanbob  
  • Mark V
    Posted on October 4, 2010 at 6:34pm

    Welcome to the peoples republic of California, I can’t wait for Jerry Brown to fix this mess. After all as the Chief Law Enforcement Officer in California I‘m sure he’s working on it! Ya right why mess with your voter base. This State has lost it ******* MIND.

    Report Post »  
  • grnhrn
    Posted on October 4, 2010 at 6:34pm

    Can’t blame them they are just doing what they are tought. I mean you don’t expect them to risk or throw away money they actually worked for do you? There is another “hidden waste” of selling your food money for actual drugs and sex although not as profitable generaly 25 cents on our plastic dollar.

    Report Post »  
  • AZBOB
    Posted on October 4, 2010 at 6:34pm

    And just think, this is the new and improved California welfare system.

    Report Post »  
  • KenInIL
    Posted on October 4, 2010 at 6:33pm

    Don‘t they know you just can’t watch TV all the time when you are on welfare and job hunting is really passe’.

    They ought to loose there bet with the system and pay the system back 3x. what they got over the last 5 yrs.

    Report Post »  
  • jabernathy81
    Posted on October 4, 2010 at 6:28pm

    Gotta love government entitlements………….

    Report Post »  
  • Contrarianthinker
    Posted on October 4, 2010 at 6:27pm

    Arnold, what are you going to do about this? How about a replay of terminator? (grin)

    Report Post »  
  • flagbearer
    Posted on October 4, 2010 at 6:26pm

    Just who are the victims, the poor or the people who support welfare with their taxes? We need some people in Washington to practice tough love.

    Report Post »  
  • Nietsretto
    Posted on October 4, 2010 at 6:25pm

    Another example of corrupt California. When are we going to wake up America? We need to get rid of all the corruption. Faith, Hope, Charity, not gimme, gimme, gimme.

    Report Post »  
  • Psychosis
    Posted on October 4, 2010 at 6:24pm

    you should not be allowed to withdraw cash from these cards. purchases should be made with cards and purchase information should be tied to account and reviewed consistently. also any other bank accounts and credit cards that recipients have should be tied to that account for as long as they receive assistance. if you can afford to blow your money on crap, you dont need assistance. no more buying lobster and tbones with your food stamps and getting into you escalade while wearing 5000 dollars of bling and 200 dollar sunglasses you have to put in you 2000 dollar gucci purse while shopping

    Report Post » Psychosis  
    • smugsmiley
      Posted on October 4, 2010 at 6:33pm

      >you should not be allowed to withdraw cash from these cards.

      Agreed.

      >purchases should be made with cards and purchase information should be tied to account and reviewed consistently.

      Agreed, but impractical. It would take a LOT of manpower to review those accounts. Also, there’s the problem of breach of privacy. Or do you mean there’s a special, state-run account?

      >also any other bank accounts and credit cards that recipients have should be tied to that account for as long as they receive assistance.

      You shouldn’t really have credit cards in that situation. You can do pretty nasty stuff to yourself with those things if you don’t watch out.

      >if you can afford to blow your money on crap, you dont need assistance. no more buying lobster and tbones with your food stamps and getting into you escalade while wearing 5000 dollars of bling and 200 dollar sunglasses you have to put in you 2000 dollar gucci purse while shopping

      Agreed, that shouldn’t happen with people on financial assistance. The vast majority of people on aid don’t blow their money on stuff like this, but there need to be some repercussions for those that do.

      Report Post » smugsmiley  
    • poverty.sucks
      Posted on October 4, 2010 at 10:14pm

      Democratic congress 2007-2008 permitted cash option. Give them homes and loans they can’t afford and EBT cash so they can have more options.

      Report Post » poverty.sucks  
    • EAGLEMOM
      Posted on October 4, 2010 at 11:49pm

      privacy????? that is a luxury that only non-government dependent citizens enjoy…..at least for now. Of course, that is why the lib government wants more and more citizens dependent on government.

      Report Post »  
  • scseahawk
    Posted on October 4, 2010 at 6:21pm

    The reason the rich get richer and the poor get poorer?…..The rich understand how to handle money, the poor do not. It’s that easy. We all start out poor ( unless someone gave you some money to start with)

    Report Post »  
    • smugsmiley
      Posted on October 4, 2010 at 6:28pm

      You’re not trying to tell me everyone starts out with equal chances of getting rich? Because I’d really have to print that out and frame it.

      Report Post » smugsmiley  
    • broker0101
      Posted on October 4, 2010 at 6:33pm

      No, of course not, SMUG. You, for example, never had a chance.

      Report Post » broker0101  
    • smugsmiley
      Posted on October 4, 2010 at 6:57pm

      Neither had you, which is exactly my point.

      Report Post » smugsmiley  
    • broker0101
      Posted on October 4, 2010 at 7:01pm

      SMUG, By President Obama’s definition, I certainly am! Sorry to hear about your (totally predictable) misfortune.

      Report Post » broker0101  
    • smugsmiley
      Posted on October 4, 2010 at 7:14pm

      For someone wading in cash you sure post a lot on this here message board. But well, we’re all rich, muscular and beautiful. On the Internet. Besides, don‘t you think it’d be a wee tad arrogant to speak of people who earn less than $370k (which is about 99% of the American population) as “misfortunate”?

      Report Post » smugsmiley  
    • broker0101
      Posted on October 4, 2010 at 7:18pm

      No, I wouldn’t say it is “arrogant”, I’d say it is “SMUG”. Wink, wink, darling.

      Report Post » broker0101  
    • smugsmiley
      Posted on October 4, 2010 at 7:33pm

      Well, if you actually are, I guess you deserve it. But at least you’re not trying to tell me everyone starts with equal chances.

      Kisses!

      Report Post » smugsmiley  
    • NoName22
      Posted on October 4, 2010 at 8:01pm

      “The reason the rich get richer and the poor get poorer?…..The rich understand how to handle money, the poor do not.”

      One simple idea to fix this. Teach economics in middle school, instead of 12th grade. Dropout age is usually 16, which is 11th grade. Seriously, give kids the option to do science or economics. Some people like to know the periodic table, gravity, biology. Some people like to know time value, supply/demand.

      Report Post »  
    • smugsmiley
      Posted on October 4, 2010 at 8:16pm

      @Noname

      The phrase “The reason the rich get richer and the poor get poorer?…..The rich understand how to handle money, the poor do not.” is a little too simplistic to really explain the whole problem. There are a myriad factors why the rich get richer and the poor get poorer. So many, in fact, that there are literally hundreds of books on the topic.

      Which doesn‘t mean I don’t like your idea, however. Some more economics in schools couldn’t hurt (to say the least). I wouldn’t say that there should be a choice between “just economics” and “just science” because barely any kids that age really know what they want to do when they grow up. But there should be an option to shift to a certain focus. Or put a heavy focus on economics before the usual dropout age and then shift over to sciences more heavily for kids who are going to see it through to the end.

      Report Post » smugsmiley  
  • broker0101
    Posted on October 4, 2010 at 6:19pm

    Sadly, these Wellfare Losers are just that, LOSERS. If one actually ever hit it big in a casino, at least they’d actually be forced to pay some tax dollars for a change. Imagine how they’d howl when almost half of their million dollar jackpot went to Uncle Sam??!!!

    Report Post » broker0101  
  • NE12012
    Posted on October 4, 2010 at 6:19pm

    Save my seat, I gots to run to the 7-11 and gets some cash.

    Report Post » NE12012  
  • wingedwolf
    Posted on October 4, 2010 at 6:16pm

    Our tax dollars at “work!” what wingnut decided that these freeloaders should be able to use their welfare-collecting cards at ATM’s anyway?

    Report Post » wingedwolf  
  • puck30
    Posted on October 4, 2010 at 6:15pm

    I don‘t have a figure but here in PA they just got around to fixing the ’Welfare Cards‘ so they can’t be used at the Casinos.

    Report Post » puck30  
    • Post-Progressive American
      Posted on October 5, 2010 at 4:08am

      The scammers are always one step ahead. Unfortunately, it makes the legitimate needy look bad.

      I grew up in CA and I remember a healthy black market business in food stamps. People would be outside the grocery stores selling the food stamps for as little as 50 cents on the dollar…so they would have cash to buy beer and cigarettes.

      Report Post » Post-Progressive American  
  • RobertCA
    Posted on October 4, 2010 at 6:14pm

    Not a news to me & welcome to CA

    Report Post » Robert-CA  
    • solaveritas
      Posted on October 4, 2010 at 6:24pm

      Seems like the use of a card in an unlikely place would flag the account for confirmation of legitimate qualification.

      Big Government = Big Corruption = Big Fraud = Big Deficit

      Report Post » solaveritas  
    • cheezwhiz
      Posted on October 4, 2010 at 6:36pm

      I agree. Anyone who lives here knows that anyone from anywhere can demand and receive welfare in CA, its not like there are rules or guidelines to be followed .
      ID theft and document fraud are a way of life for some “ las communidades ”
      and not even the Attorney General gives a rats posterior about it.

      cheezwhiz  
    • Spokavriel
      Posted on October 4, 2010 at 6:38pm

      ::sigh:: Another thing to keep in mind for “Casino Floor” Transactions. About 1/3 of the easy to find ATM‘s in Vegas are either exposed to streets that don’t seem that safe or on Casino floors. When I lived down there I even used the ATM in a Casino because at least it was better lighted when passing on my way to the Grocery Store. Using the ATM there does give a chance of it being misused but it could also be a sign of common sense not wanting to use an ATM surrounded by blind spots.

      Report Post » Spokavriel  
    • RobertCA
      Posted on October 4, 2010 at 6:48pm

      By the way these same people are driving the latest Mercedes & BMW or Lexus & yet on Welfare .

      Report Post » Robert-CA  
    • poverty.sucks
      Posted on October 4, 2010 at 7:36pm

      FAM TRIPS, Familiarization trips outside the State of California in an attempt to “live” in an environment that may better their family. It’s quite obvious life in California Suck.

      Report Post » poverty.sucks  
    • FreedomOfSpeech
      Posted on October 4, 2010 at 7:37pm

      That money probably ended up going to better use than it would have if the politicians spent it on one of their pet projects. Of course, it would have been better to have lower taxes and less spending and not collect it at all.

      Report Post » FreedomOfSpeech  
    • starman70
      Posted on October 4, 2010 at 7:43pm

      Why are they alowing out of state purchases in the first place? Welfare receipitants should only be allowed to spend for food and other necessities.The same thing happened after Katrina with the FEMA cards.

      All I can say is what’s new, there will always be those who abuse any system we invent.

      Report Post »  
    • drbage
      Posted on October 4, 2010 at 8:30pm

      Wonder if any of them are the mysterious fishermen that none of the locals have ever seen or heard of that are showing up in the Gulf and demanding compensation for lost income because of BP. Unfortunately, there is a certain segment of our country who believe or, indeed, have been taught, to never let a crisis go to waste. Harking back to Katrina, I was on TDY with my hotel company in Alabama about two months after Katrina. 60% of the guests were relocatees from New Orleans. This hotel was 1/2 the size of the one where I usually worked, but for our complimentary breakfast and evening snacks, we used as much if not more product. After a few days, I noticed that a lot of the adults left about 5 and then came back around 6 with pots full of delicious smelling food. Once I got to know some of them, I asked where they were getting the food from. They explained that they cooked it at their apartments! So, to make a long story short, we the taxpayers were paying for them to stay in a hotel, with per diem, to rent cars, to rent an apartment, and to provide private tutors for the children since they were so traumatized by the aftermath of Katrina. I wish that a real journalist (as opposed to a journolist) would do a real in depth study of where all the money went and is still going to this day.

      Report Post »  
    • Major Infidel
      Posted on October 4, 2010 at 9:20pm

      The corruption in our social programs has been out of control since day one. End all benefits and deal with the consequences. At least we’ll have a fresh start. Ha, and a stronger gene pool too! :)

      Report Post » Major Infidel  
    • UPSETVET
      Posted on October 5, 2010 at 7:06am

      Why should this be a surprise to anyone? However, I’m sure such “hanky-panky” with welfare funds isn’t restricted to California. How many people nationwide spend part of their welfare checks on beer and cigarettes?

      Report Post »  
    • Compete or Lose
      Posted on October 5, 2010 at 8:29am

      .
      .
      .Clearly, the welfare rules need to be tightened….and the PENALTIES for violating the rules need to be increased and ENFORCED.

      This makes you wonder about all the entire program.

      Report Post »  
    • Areyoukiddingme
      Posted on October 5, 2010 at 9:06am

      Welfare and disability have been used by scamers since the start. Report them if you see it. I personally know several that have been shut down…. a guy in town was on disability for back issues however he was well enough to carry a ton of bricks on top of his home and re-brick his chimney….. Photos taken and reported.

      Report welfare fraud here http://www.ladpss.org/dpss/fraud/welfare_fraud_home.cfm
      Report disability Fraud here http://www.ssa.gov/oig/guidelin.htm

      Report Post » Areyoukiddingme  
    • SeekHIMFirst
      Posted on October 5, 2010 at 1:28pm

      Exactly! But if you point it out and ask for reform you are labeled a “racist,“ or ”right-wing crazy,” And we are the ones who have no clue? Sheeeesh!

      Report Post »  
    • sanson
      Posted on October 5, 2010 at 2:07pm

      Come on – They should look into Glendale, California and the amount of aid given out to middle eastern familes who by the way have more then one person in the household receiving aid . With computers nowadays you would think a quick cross reference could save the state hundreds of thousands of dollars.

      Report Post »  
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