Money from DHS went for hotels and Xboxes
Report shows more fraud, abuse in food programs
NASHVILLE — A Tennessee comptroller investigation has detailed hundreds of thousands of dollars in questionable payouts by the Department of Human Services on food programs intended to feed low-income kids.
In one case, taxpayer dollars were spent on Xboxes, at Shoe Carnival and for hotel stays by All About Giving, a private agency that received funds from DHS to provide food to 23 daycare centers in Nashville and Knoxville.
In another, workers at Memphisbased Heal Thyself Delivery Temple told investigators they falsified numerous records to show more meals were served than actually were. The organization collected at least $13,000 more in payments from DHS than it spent on food.
The investigations made public Thursday by the Tennessee comptroller are the latest examples of fraud and abuse within DHS’ food programs in recent years.
All About Giving’s chief executive officer LaShane Hayes is due to be sentenced in federal court on April 12 after pleading guilty to conspiracy and wire fraud charges. Her attorney did not respond to a request for comment.
Hayes’ agency submitted reimbursement requests to DHS for food she claimed was served at day care centers in Knoxville and Nashville. The organization’s bank statements showed lump sum cash withdrawals — in $20,000 and $30,000 increments, the comptroller found.
Investigators examined $230,569 in taxpayer payments to the agency, finding documentation only for $19.60 in postage stamps. There were numerous questionable expenses, including purchases from Xbox, Google Live, Big Fish Games, Shoe Carnival, Perfume Paradise as well as hotels.
The organization reported it was delivering food to 23 sites that included eight empty lots and apartment buildings with no apparent day care operations.
DHS’s lax oversight of its $80 million food programs has been highlighted by lawmakers, the comptroller and a Tennessean investigation stretching back three years that found unscrupulous state contractors have pocketed millions of dollars intended for children in Tennessee, where 1 in 4 children are at risk for hunger
Frustrated lawmakers last year enacted a law requiring the separate Tennessee Finance and Administration agency to monitor DHS’ accounting.
“They need to do a better job making sure food is getting to children in need and not going into someone’s billfold to buy Xboxes and get cash,” Sen. Jim Tracy, R-Shelbyville, said Tuesday. Tracy said he hoped DHS’ new chief, Danielle Barnes, would strengthen checks and balances at the agency.
Tennessee Comptroller Justin Wilson last year accused DHS leadership of being “in denial” over the problems. In December, DHS chief Raquel Hatter stepped down to pursue opportunities in the private sector. At the time, Gov. Bill Haslam praised her leadership.
Wilson on Thursday said he hoped “DHS is beginning to recognize the scope of this problem, and is taking meaningful steps to address these serious issues.”
A DHS spokeswoman did not respond for a request for comment.
The comptroller report criticized DHS, which is responsible for overseeing the food programs, noting it “did not take sufficient action,” “did not provide proper oversight” and lacked “adequate monitoring activities.”
A separate comptroller probe into Heal Thyself Deliverance Temple found staff withdrew more than $12,000 in cash with no documentation. Employees volunteered that documentation purporting to show meals delivered was falsified.