No Criminal Charges Filed Against

W2 Agencies' Welfare Fraud

 

 

by  Pat Gowens

 

        Maximus and Goodwill, the two largest W2  welfare agencies in Milwaukee, have admitted to

"improperly spending" hundreds of thousands of welfare dollars on projects in other states, parties,

promotional schemes, meals and concerts. Maximus admits to "inappropriately" billing the state

$411,000 while the Legislative Joint Audit found an additional $1.6 million that wasn't "well

documented."  Goodwill' s Employment Solutions "mistakenly billed" the state for $143,000.

        

    Maximus spent Wisconsin welfare money  in New York to secure a welfare contract ($51,000),

on "disallowed meals" ($17,358 ), on social activities and a holiday party for staff ($35,000), on a

fatherhood summit by Hudson Institute conservative think tank ($10,000), on a stage at a French

festival ($5000), on promotional items and publicity to advertise their company logo ($184,000) and

on a  performer for a party for staff and 12 program "graduates." ($23,000).  Goodwill, which is still

under investigation, admits to  spending $143,000 on travel, meals, housing and salaries in Arizona

to secure a welfare contract there. (All figures from Milwaukee Journal Sentinel.)

 

         To date there is no move to terminate either corporation's current or future W2 contracts (Goodwill: $102 million; Maximus: $58 million). Nor has the DA  filed criminal charges against either agency.

 

         When  millionaire agencies bilk the state of hundreds of thousands of dollars both the state and

the media label their massive welfare fraud as merely "inappropriate" and "improper spending."

Yet a single mom on welfare who "improperly" or "inappropriately" reports income is charged with

felony welfare fraud and prosecuted criminally. Neither the state, the DA, nor the media take pity

on the desperate mom with euphemistic language like "improper" or "erroneous" reporting. She is

labeled, charged, prosecuted , convicted and sentenced as a criminal. And yes, she also has to repay

the state.

 

         The wealthy W2 agencies insist that they were "unaware" of their billing/reporting "errors."

Somehow they did not know they were committing welfare fraud when they spent Wisconsin W2

funds in New York and Arizona. Perhaps that is why the DA has not brought criminal charges

against them. Yet if a mother on welfare is "unaware" of reporting "errors" (even if she doesn't

report income because only her children are on welfare, not herself),  ignorance of the law is no

defense.  How then can millionaire agencies with high-paid lawyers and accountants plead

ignorance and avoid prosecution?

 

         While the daily media minimizes Maximus' and Goodwill's theft of welfare funds,  they also

overlook the victims of this crime. These state-funded welfare administrators stole cash not from a

vague "state," but from impoverished mothers, children and people with disabilities who sought

assistance and were illegally turned away, sanctioned and terminated.

 

         The examples are chilling.  Goodwill denied  Yvette Reeves the cash support she needed to stay

home during the summer to care for her 13 year old son, D'Andre, who had  Cerebral Palsy and

mental retardation.  When she asked for child care for her 13 year old boy in a wheel chair,

Goodwill again denied her funds. When D'Andre Reeves was scalded to death in his bathtub while

being cared for by a 14 year old sibling, Goodwill offered no apologies and still no money.  Goodwill

continues to deny funds to single mothers to care for sick children,  moms who are hospitalized or

too sick to do Goodwill's unwaged labor,  and mothers who are facing eviction and job loss.

 

         While Maximus was embezzling $411,000, they denied single moms like Tracy Jones, Alfreda

Parks and Ethel Scott funds to tide them over between jobs. Instead Maximus referred these women

in crisis to Maximus' Temporary agency, Max Staff, which sent them to do part-time temporary

factory work in a nearby town, charging them $20 a week for van service from Maximus to the

factory.  MaxStaff paid the women $7.01 an hour while paying men on the same job $8.14.  By

refusing to provide cash to these struggling families Maximus  profited in four ways:  temp job

profit,  van profit,  discrimination profit and  unspent funds! Quadruple dipping while unlawfully

appropriating welfare funds for parties, trips and NY outreach.

 

Privatization Out of Control

 

         Ironically, sadly, both Maximus and Goodwill also stand to reap as much as $4.4 million in

performance bonuses for so effectively denying and terminating W2 support for families (case

reduction). And the Private Industry Council, the agency that "earned" $1 million a year to monitor

the W2 contracts, will again receive a million dollars to "review W2 contracts," while providing no

financial oversight and no protection to W2's victims.

          W2 "case reduction" and "improper spending" has resulted in a 37% increase in infant

mortality in Milwaukee each year since W2  began ( Start Smart Milwaukee, 2000). While Goodwill

and Maximus enjoy lavish meals, trips, parties, and concerts, 30 more African American

Milwaukee babies under the age of 1  die unnecessary deaths each year. Older children and disabled

mothers who have died as a result of W2's failed experiment are not included in the study.

Corporate welfare has never been so lucrative--or so deadly.

 TAKE ACTION!!

 Please sent letters to  DA McCann urging him to prosecute the

mothermuggers

Maximus and Goodwill, along with copies to U.S. Attorney Janet Reno, Goodwill,  Maximus,

and  perhaps the Milwaukee Journal-Sentinel. (For them to publish it,

it must appear to be for them only, can not be a copy. (They are

such a sell-out it's a long chance though.)  Here are the

addresses:

                      

Pat Gowens is Milwaukee director of the Welfare Warriors and editor of Welfare Mothers Voice, an

international mothers' publication.

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