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Health and Family Services Cabinet
OIG Targets Fraud and Abuse in Child Care Subsidy Program

Press Release Date:  Thursday, March 23, 2006  
Contact Information:  Vikki Franklin or Beth Crace
(502) 564-6786

The Cabinet for Health and Family Services’ Office of the Inspector General announced today that the state will recover more than $27,000 from four OIG investigations of fraud and abuse in the Child Care Assistance Program. Among other things, the program provides funding for child care services for eligible individuals.  

The recovered money, which will be repaid to the program, is the result of court-ordered settlements of child care fraud cases across the state within the past 60 days. The cases stem from OIG investigations that were presented to local prosecutors for disposition.

“These actions demonstrate the effectiveness of OIG investigators in aggressively targeting and eliminating fraud and abuse and protecting the taxpayers of Kentucky,” said Inspector General Robert J. Benvenuti III, who oversaw the expansion of the OIG’s investigative function in July 2005.

Since that time, OIG special investigators identified the Child Care Assistance Program as a target for investigation based on intelligence received by the office.

“This program received very little oversight in the past,” said Benvenuti. “That has changed under this administration and these cases should cause those who are defrauding the program to take notice that their fraudulent conduct will not be tolerated.” 

Each case presented to local prosecutors by OIG investigators resulted in a final court action. Here’s a closer look at each:

· Rachelle Brown was convicted of a Class D felony in Jefferson County. As part of her diversion agreement, she is required to make restitution in the amount of $7,312. The case was investigated by OIG Special Investigator Bob Graham.

· Monique Ware-Davis was charged in Hardin County with defrauding the child care assistance program. She pleaded guilty and was sentenced to 12 months. Her sentence was probated to two years and she has been ordered to pay restitution in the amount of $6,942. The case was investigated by OIG Special Investigator Paula Hensinger.

· A Carlisle County resident agreed to make restitution, to avoid prosecution, in the amount of $5,540 for defrauding the child care and KTAP (Kentucky Temporary Assistance) programs. Restitution is complete. The case was investigated by OIG Special Investigator Donnie Woods.

· Dana Gibson, of Jefferson County, entered into a diversion agreement on the condition that she pays restitution in the amount of $7,800 for illegally receiving child care funds. The case was investigated by OIG Special Investigator Martin Raymer.

The Cabinet for Health and Family Services' Office of Inspector General is Kentucky's regulatory agency for licensing all health care facilities, day cares, long-term care facilities and child adoption/child-placing agencies in the commonwealth. The office is responsible for the prevention, detection and investigation of fraud, abuse, waste, mismanagement and misconduct by the cabinet's clients, employees, medical providers, vendors, contractors and subcontractors. 

To report fraud and abuse to the Inspector General, please call 800-372-2970.


Last Updated 3/23/2006