Gov. Dannel P. Malloy disclosed Sunday that 800 state employees obtained federal disaster aid through the state after Tropical Storm Irene, with an undisclosed number suspected of gaining the assistance through fraud.
State and federal prosecutors were notified Friday, he said.
At an abruptly called news conference at the Capitol, Malloy said that staff at the Department of Social Services spotted the names of "more than a few" state employees who appeared to obtain aid without fully disclosing their income.
Roderick Bremby, Lt. Gov. Nancy Wyman, Gov. Dannel P. Malloy
Many, if not most, of the employees undoubtedly got the aid legitimately, Malloy said.
The suspected fraud was committed by employees who appear to have underreported their income in applications for the aid, not by any DSS workers directly involved in administering the program or approving applications, officials said.
"I am making this announcement because we believe fraud has been perpetrated by a number of individuals," said Malloy, who was accompanied at the 10-minute press conference by Lt. Gov. Nancy Wyman and Roderick Bremby, the commissioner of social services.
Any findings of fraud by an employee will mean termination and prosecution, Malloy said.
"If I look angry, it is because I am," Malloy said, stepping to a lectern outside his office at the state Capitol.
Wyman said, "If any of these state employees are indeed guilty I am disappointed beyond words."
The federal aid came through the federal Disaster Supplemental Nutrition Assistance Program, known as "D-SNAP."
At 9:41 a.m., the governor's press office distributed a terse notice of a news conference by email. It offered no details of the subject matter, saying only that Malloy would"make an announcement." Based on a source, The Mirror reported the suspected fraud Sunday morning.
Malloy said he held the rare Sunday press conference, because he is about to depart for a trip the Democratic Governors Association meeting in Los Angeles and he wanted to break the news.
"If I didn't do that ...someone might say I am not personally taking this seriously. I have been taking this seriously since it came to my attention," Malloy said. "I decided to do it myself."
Malloy said the apparent fraud was discovered by DSS staff.
"Rod's team was doing their job, and doing the review they are required to do, they came across some names that looked familiar," Malloy said. "That gave rise to Rod doing more work on it."
One source said DSS staff was stunned to see the names of some highly paid state managers on the list of recipients, prompting a more detailed review. The 800 employees who got the disaster aid appears to be a disproportionately high percentage of the 23,000 applicants.
The D-SNAP benefits became available in Connecticut for the first time after President Obama granted Malloy's request for disaster assistance in all eight counties.
Benefits were issued through ATM-style debit cards for the purchase of approved food items at grocery stores. The program is designed to quickly distribute aid, getting the cards in the hands of recipients within 72 hours.
Eligible households were to receive food aid ranging from $200 for a single adult to $1,202 for a family of eight. Applicants had to identify uninsured disaster losses incurred from Aug. 27 to Sept. 25.
Qualified losses included lost wages and expenses for temporary shelter, emergency repairs and health care due to the storm that destroyed or significantly damaged hundreds of homes.
D-SNAP was intended for residents who were not already receiving regular benefits under SNAP, the federal program that provides an updated version of food stamps.
The program was described as intended for low-income residents. But based on the eligible income ranges, it appears possible for some state employees to have legitimately qualified, depending on household size.
According to a press release announcing the program Sept. 19, the maximum monthly "take-home income and liquid assets" for the covered 30-day period was $2,186 for a single adult, $2,847 for a household of two, $3,272 for three, $3,859 for four, $4,245 for five, $4,753 for six, $5,116 for seven and $5,479 for eight.
"We need to be very clear up front about the federal requirements for this special form of assistance to residents impacted by Tropical Storm Irene," Bremby said in announcing the program in September.
If fraud was detected, the episode will be an unwelcome milestone in the Malloy administration, which is closing out its first year in office.
please investigate everyone, not just state employees. The problem is that people claimed grandkids, nieces and nephews that don't live with them as dependants so that they qualify and can collect more money. This is common practice in this state of ours, claiming people that don't live with you for financial gains. lock them up!
OBVIOUSLY, the State is going to have to cross-check EVERY such aide recipient with their filed income tax returns - and not just State employees. Every single person who filed for it fraudulently will need to be prosecuted, and every State employee (if any) who did so - REGARDLESS of their "rank" - will need to be fired as well.
According to the article this investigation only involves state employees. They need to include everyone, lock them up, fire them, make examples of them all and make sure people stop claiming anyone and everyone as dependants!
My guess is that nothing will come of this, Malloy is all talk.
It was obviously easier to identify State employees because some of the names were recognized. We saw the confusion and lines on the news and the comments of some who are SNAP recipients but thought they would come to see if they could get some reimbursement anyhow. Every recipient needs to be checked even if it is not as easy unless the State is declaring open season on its own workforce. If fraud was committed by ANY RECIPIENT they need to be dealt with severely.
"The 800 employees who got the disaster aid appears to be a disproportionately high percentage of the 23,000 applicants". Isn't that actually about the same proportion of state employee households to non-state employee households? I'm not clear on how that is disproportionate. Also, take home income of $3,859 for a family of four for four weeks equates to $50,161. That would be about $75,000 or so gross, I'm sure a lot of state employees make less than that.
A lot of state employees qualify because they claim dependents that they have no business claiming. that way a household of 2 becomes a household of 6 and they qualify, this is a small part of a very big problem. they state and the feds don't do their homework. I think when i file my taxes I'm going to claim all my nieces and nephews! $$$$$$$$$$$$$
rankandfile - EXACTLY. I think what caught people's eye was when they spotted a few names of some higher-paid managers on the list. But who knows... they'll have to go over each and every name and household with a fine-toothed comb.
vic8432 - What on EARTH makes you think that State employees would do such a thing, but that non-State employees WOULDN'T??? I *guarantee* you that when all is said and done, if there was *any* real fraud involved the overwhelming majority of it will turn out to have been committed by people OTHER than State employees.
NOW WHAT, I'm not singleing out state employees. what I'm saying is that people claim dependants (nieces, nephews and grandkids) that they shouldn't. If you think this doesn't go on, you must be living on another planet. If you look at the requirements to qualify for aid you will see that it's based on income and the number of dependants. THEY NEED TO INVESTIGATE EVERYONE AND MAKE SURE THAT THE DEPENDANTS ARE LEGIT!
I do not understand why everyone is wondering about the "culture of fraud" in our society -- may be because state workers are directly involved and caught in "Irene fraud"? Fraud is pernicious and has been pervasive in our society for a very very long time.
I submit that every "entitlement program" -- whether it is housing, food stamps, medic aid, or any other kind of program involving taxpayers' money should require both "forensic" accounting and "fraud" audits. We can and should hire outside auditors (from out of state) on a contingent fee basis, which means that such
Read MoreQuestion: Why were people in Hartford even getting food vouchers when the city did not lose power during Tropical Storm Irene? Was this question even asked as part of the application process?
The people that actually lost power were mostly located in the rural Eastern part of the state and they never even knew about these "super secret" hand-outs. The centers were located in inner Hartford and Manchester. Great job DSS! Great job administering this program.
EDITOR'S NOTE: The centers were located throughout the state, not just in Hartford and Manchester.
Editor - I understand these were not the only centers in the state. My point is that these two Hartford County centers should have been located in towns that experienced a power loss. How many residents of Marlborough for example are going to drive to Albany Ave. Hartford? Additionally, there was little if any pre-warning/advertising that these vouchers were available.
It is important that everyone not get lost in the details. The most important element of this story is the FRAUD that was committed. That being said, the governor has a responsibility to the taxpayers of this state to prosecute all individuals guilty of fraud, not just state employees. If he does not see this issue through to that end, then he too is a fraud. He will lose what little credibility he might have left if he allows citizens of this state who knowingly applied for those benfits that they weren't entitled to go unprosecuted. It is
Read MoreI doubt if we see anyone prosecuted, Malloy will one again show that he has no integrity. Investigate all 23,000 and make sure all the dependants claimed are legit, if they do this you will see at least 50% of the claims were fraudulent.
I think everyone who defrauds the government should get fired. Just think how many people don't report their entire income to the IRS by working under the table. I want them to be investigated. They are cheating the government too. That way they can be out of work, then they can all receive government aid.
Susan Bysiewicz, Democractic candidate for U.S. Senate, during a debate with U.S. Rep. Chris Murphy.
"Susan has been using this tired line of attack for the last year and a half, and it hasn't worked."
Chris Murphy
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