Mass. audit finds dead welfare recipients collecting millions of dollars

A state audit has revealed that Massachusetts has given out $18 million in “questionable public assistance benefits” in recent years, in cases that included the distribution of benefits to more than 1,160 people who were either dead or using the Social Security number of a deceased person. In some cases, recipients began receiving benefits for the first time after their deaths. The audit, issued Tuesday, covered cash, food stamps, and other benefits intended for low-income families, and found millions of dollars in irregular benefits and an urgent need for improved anti-fraud security.

In 1,164 cases, deceased recipients continued to receive a total of $2.39 million in benefits up to 27 months after they had been reported dead. The state Department of Transitional Assistance also paid out at least $368,000 benefits to 178 guardians who claimed deceased persons as dependents, and $164,000 to 40 individuals being claimed by more than one guardian.

Additionally, State Auditor Suzanne Bump found suspicious transitions on electronic benefit cards amounting to $15 million, including almost $5 million in  which all food benefits had been withdrawn at once. Meanwhile, five regional offices could not provide documentation for more than 30,000 EBT cards.  Read more >>

JP Morgan’s Food Stamp Empire

JP Morgan Chase Tower (Photo credit: mheisel)

In 2010, President Obama signed into law the Healthy, Hunger-Free Kids Act. The bill added $4.5 billion to child-nutrition programs over the next decade, put in place nutrition standards for school lunch programs and vending machines, and implemented training for the cafeteria workers who feed 31 million students a day through the National School Lunch and School Breakfast programs. It received bipartisan support, and was hailed as a compassionate victory for America’s poorest children.

The bill was also, however, a potentially good development for mega bank JP Morgan Chase. Why, you may be wondering, would one of the nation’s biggest banks benefit from a bill meant to feed poor children? A closer look at the legislation reveals the answer. The bill mandates that “all state agencies implement Electronic Benefit Transfer (EBT) systems by October 1, 2020” for those receiving money through the Women, Infants, and Children (WIC) program. And which company administers nearly half of all states’ EBT programs? You guessed it: JP Morgan Chase. Read more >>

US Households On Foodstamps Hit Record High

Record Dow, record S&P, record debt, record plunge in gold, and now: record US households on foodstamps. What's not to like. While today's gold selloff may be confusing to everyone, one can scratch off some 23,087,886 US households, or the number that according to the USDA were on foodstamps in January and just happen to be a fresh all time high, as the likely sellers, especially when one considers that the average monthly benefit to each household dropped to a record low of $274.04. This number probably ignores, for good reason, the once every four years fringe benefits of Obamaphones and other such made in China trinkets. Read more >>

Store owner arrested for using food stamps to stock shelves

A convenience store owner in Daytona Beach, Fla.was arrested Monday for running a food stamp scam, using tax dollars to stock his shelves.

Bassam Abu Diab and his son Matthew were buying food stamp cards for 20 to 40 cents on the dollar and using them to shop at Walmart and Save-A-Lot stores for items they sold in their convenience store, police said, according the Daytona Beach News-Journal.

An undercover agent sold EBT cards to Abu Diab, which he used to purchase items at other stores and then paid the agent less than half the value of the cards. Federal, state and local officers raided the Abu Diabs’ 4M Food Mart after a 3-month investigation.

“This guy is running a business on the taxpayers back,” said Daytona Beach Police Chief Michael Chitwood, according to local tv station WFTV Channel 9. “It’s a fraud. He’s unscrupulous and clearly he didn’t learn from the last time we hit the store.” Read more >>

Foodstamps Soar By Most In 16 Months: Over 1 Million Americans Enter Poverty In Last Two Months

And we thought last month's delayed foodstamp data was bad. The just reported foodstamp number for September was a doozy, with 607,544 new Americans becoming eligible for foodstamps, as a record 47.7 million Americans are now living in poverty at least according to the USDA.

The monthly increase was the highest since May 2011, and with August's 421K new impoverished America, over 1 million Americans made the EBT card their new best friend. It is unclear just which atmospheric phenomenon will get the blame for this unprecedented surge in poverty, which comes at a time when the pre-election economic data euphoria was adamant that the US economy was on an escape velocity to utopia.

Instead what we do know is that in August and September, over three times as many foodstamp recipients were add to the economy as jobs (324,000). We also know that with the imminent impact of Sandy, which will send foodstamp recipients soaring, it is now looking quite possible that the US may end 2012 with just over a mindboggling 50 million Americans living in absolute poverty and collecting the $134.29 average monthly benefit per person, instead of working. Welcome to the recovery indeed. Read more >>

20 Reasons Why America’s Next Bank Holiday Will Be a Nightmare

James Wesley Rawles
Survival Blog via shtfplan

The world is on now on the brink of a global credit crisis that could be far worse than the tumultuous events of 2008. The ongoing sovereign debt crisis in the southern reaches of the Eurozone indicate that bank runs in the region will continue, and that more bank closure “holidays” will be declared. Under a bank holiday, virtually all deposits could be frozen and irredeemable for days, weeks, or even months.

The key question is: Will this crisis spread to the rest of Europe and then even to the United States? I urge SurvivalBlog readers–particularly those in Europe–to be proactive, to stay “ahead of the power curve.” While the Generally Dumb Public (GDP) wakes up some morning to hear news of a bank holiday, you will have long hence prepared yourself.