A lawsuit alleging widespread corruption in its social service programs has been filed against Clackamas County.
Filed Nov. 17 by Galina Burley, a former human services manager with the county, the lawsuit states that Clackamas County’s Social Services Division improperly made payments from a fund meant to help people caring for disabled family members to the agency’s staff. The lawsuit alleges that the funds were then used by the agency’s staff to pay for travel, lodging, personal computers, facials and massages. It also states that money was embezzled from a program that manage the finances of some of the county’s most vulnerable people.
While the lawsuit alleges widespread misuse of funds in Clackamas County social service programs, the litigation focuses on the county’s Family Caregiver Support Program, which provides financial and emotional support to unpaid individuals providing in-home care to a family member. According to the lawsuit, the program’s coordinator was approving grants for unqualified caregivers without proper documentation for expenses not in line with the program.
The lawsuit states that Burley also sought to address “apparent embezzlement” in Clackamas County’s Money Management Program. Easter Seals Oregon, a nonprofit that works with disabled people, contracts with the county to provide the program, which aids seniors and disabled individuals in managing their federal benefits. The program serves as a representative payee, an individual or an organization tasked by the Social Security Administration with administering the federal disability or old-age benefits of individuals who, due to a physical or cognitive impairment, need help managing their money.
In fiscal year 2012, there were about 5.9 million representative payees who managed $72 billion annually for 8.4 million beneficiaries.
Over the last decade, government watchdog agencies have issued a stream of reports raising serious issues with the Social Security Administration’s ability to monitor the program and prevent fraud and abuse from occurring. This spring, Street Roots reported on a federal investigation into Oregon’s largest payee service, Safety Net, and it’s subsequent closure. That investigation is ongoing.
Burely’s lawyer wouldn’t comment on the case, and a spokesperson for Clackamas County didn’t respond to Street Roots’ questions by press time.
Easter Seals Oregon contracts with local government agencies and nonprofit groups across the state to manage its payee service for 500 clients. David Cheveallier, the president and CEO of Easter Seals Oregon, said that his organization has contracted with Clackamas County for the past seven years to provide the payee service to 300 clients.
He said that the program undergoes regular audits, which haven’t uncovered any evidence of embezzlement. Cheveallier also said that all organizations that contract with Easter Seals of Oregon for its payee service are required to notify it if there are problems with the program.
“We haven’t been notified,” he said. “They’ve been a great partner for the last seven years.”
