They say raising kids is expensive, but what if you had 17 of them? That’s what one San Francisco couple claimed—except the children never existed. Instead, the pair allegedly orchestrated a massive welfare scam, pocketing over half a million dollars in taxpayer-funded benefits.
A city worker and her partner have been arrested and charged with fraud, accused of exploiting welfare programs by fabricating a story about caring for 17 children. Authorities say Daisy Avalos, 47, an employee with the San Francisco Municipal Transportation Agency (SFMTA), and her partner, Maggie Pasigan, 49, falsified information to receive government benefits meant for low-income families. Their alleged deception unraveled when investigators discovered glaring inconsistencies in their claims.
How It Worked:
The scheme revolved around manipulating public aid programs:
- False Household Information: Pasigan failed to disclose her domestic partnership with Avalos and Avalos' income, which would have disqualified their household from welfare assistance.
- Fake Dependents: They claimed to care for 17 children, enabling them to receive over $30,000 monthly in child care subsidies.
- Nonexistent Childcare Operations: Surveillance at their home showed no sign of children or daycare activities.
- Business Cover-Ups: Pasigan owned two businesses, a daycare and a boutique, both listed at addresses tied to the couple but appearing inactive.
Who Was Targeted?
The scam primarily exploited government-funded welfare programs, diverting funds intended to support struggling low-income families. By faking eligibility, Avalos and Pasigan not only stole taxpayer money but also reduced available resources for those in genuine need.
Real-Life Consequences:
Investigators from multiple agencies, including the U.S. Department of Housing and Urban Development (HUD), uncovered that over $375,000 in taxpayer funds had been misappropriated. Special Agent Robert Lawler from HUD underscored the severity of the crime, emphasizing that these actions compromised essential federal programs. The couple now faces serious charges, including grand theft, welfare fraud, money laundering, and conspiracy.
Why You Should Care:
Government fraud not only drains public resources but also erodes trust in welfare programs designed to help the truly needy. Scams like this can lead to stricter regulations and increased scrutiny, making it harder for deserving families to access aid.
How to Protect Yourself & Your Community:
- Report Suspicious Activity: If something seems off, report it to the appropriate authorities.
- Verify Businesses & Services: Before using childcare services, research their legitimacy.
- Stay Informed: Keep up with fraud trends to recognize red flags.
- Advocate for Transparency: Support policies that enhance oversight of public funds.
- Protect Your Identity: Fraudsters often use stolen information to game the system.
Quick Tips & Updates:
Quick Tip #1: "Did you know? Fraudulent claims cost taxpayers billions each year, straining public resources. Stay vigilant!" Quick Tip #2: "Pro Tip: Always verify service providers and organizations before entrusting them with sensitive information."
Stay safe, stay informed.
Keyword Definitions:
- Welfare Fraud: The act of intentionally misrepresenting information to receive government assistance unlawfully.
- Grand Theft: A crime involving the theft of property or funds exceeding a legally specified amount.
- Money Laundering: The process of disguising illegally obtained money to make it appear legitimate.
- Conspiracy: An agreement between two or more parties to commit an illegal act.
- Section 8 Housing Assistance: A federal program that provides rental housing subsidies to low-income families and individuals.
- Child Care Subsidy: Government financial assistance to help cover child care costs for eligible families.
- HUD (Department of Housing and Urban Development): A U.S. government agency responsible for national housing policies and programs.
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