It’s All About the Fraud


Fraudsters tend to be selfish people who are really good at manipulating situations to benefit themselves. In true form, a Tennessee woman used her position as a child care provider to scam the Department of Agriculture’s Child and Adult Care Food Program. (She stole hundreds of thousands of dollars originally intended for feeding hungry children.)

Under the federal program, more than 3.3 million children and 120,000 adults receive meals and snacks through after-school programs, community centers, churches and other settings. The federal government provides the funding through states that are then responsible for distributing to organizations who feed impoverished children and adults. While some of the funds go directly to many agencies, there are others who serve as middlemen and distribute the money to churches or day care centers. (The woman at the center of today’s case was a middleman.)

In order to receive the federal funding through the Tennessee Department of Human Services, the day care provider and several co-conspirators faked documentation by making up the names of children and other child care providers who did not exist. Together, they overstated the number of agencies that actually provided meals and the number of kids that were actually fed. (This caused these organizations to receive more funding.)

In order to make it appear that the woman was distributing the government funding as required, she wrote checks to the non-existent child care providers. They in turn cashed the checks, then paid her a cash kickback, which she pocketed. (It’s evident she didn’t care much about the welfare of the vulnerable children she was tasked with serving. Apparently, it was all about her.)

The 44-year-old woman pleaded guilty to stealing more than $1.5 million in government benefits intended for hungry children. (I bet they were pretty ”hangry” about that.) This criminal, who made her illegal acts all about her and her selfish desires, will find out her fate when sentenced. (I’m sure the government will make sure she gets put in her place. After all, it’s not about her, it’s about the fraud and the government’s efforts to prevent it while protecting its most vulnerable citizens.)

Source: Today’s ”Fraud of the Day” is based on an article entitled, ”Tennessee woman pleads guilty to child food program fraud,” published by The Tennessean on January 3, 2017.

A la Vergne woman pleaded guilty Tuesday to charges she stole more than $1.5 million of government money meant to feed low-income children, according to federal officials.

LaShane Hayes, 44, was charged in a federal indictment connected to her sponsor agency, All About Giving, Inc. Sponsor agencies are tasked with recruiting child care providers and coordinating the funding those meal providers receive from federal Department of Agriculture’s Child and Adult Care Food Program via the Tennessee Department of Human Services.

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Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.