This week, a grand jury charged former state Sen. Phil Griego with 22 new criminal counts centering mostly on embezzlement and perjury for allegedly using campaign money for personal use and lying about it. In total, Griego faces 19 new felonies and three misdemeanors. This adds to the nine previous corruption counts Griego was charged with last summer by a district court judge in Santa Fe. Attorney General Hector Balderas’ office is prosecuting Griego. The new charges include 13 perjury counts, each of which are fourth-degree felonies, for lying on several of his campaign finance reports between 2012 and 2015.
Tens of thousands of Medicaid recipients in New Mexico are not receiving their health benefits on time, according to numbers from state government. As of February of this year, more than 48,000 Medicaid cases up for renewal are not being processed by the state Human Services Department (HSD) on time, according to a federal court filing in April citing HSD’s own numbers. And that number of Medicaid renewal delays has only grown to more than 59,000 as of May 10, according to Maria Griego, a staff attorney with the New Mexico Center on Law and Poverty. “They’re pretty bad,” Griego said of the delays. While the number of New Mexicans who haven’t received their Medicaid benefits on time has been expanding, HSD erased a large part of the backlog of renewal applications for the federal Supplemental Assistance Nutrition Program (SNAP), formerly known as food stamps.
A federal judge appointed a Texas government official to serve as the “special master” to help a New Mexico state agency come into compliance with federal law. Lawrence M. Parker, who has worked for the Texas Health and Human Services Department, will be responsible for essentially fixing the New Mexico Human Service Department’s food aid and Medicaid case processing. The appointment comes as part of a decades-old lawsuit that alleged HSD wasn’t properly processing federal aid to New Mexicans. While that lawsuit, known as Hatten-Gonzales, resulted in a consent decree in 1990, an Albuquerque-based nonprofit argued in court this year that the state wasn’t properly following guidelines laid out under the consent decree. The New Mexico Center on Law and Poverty also argued for the federal court to appoint an independent monitor to oversee the state department’s Income Support Division, which processes Medicaid and Supplemental Nutrition Assistance Program (SNAP) benefits.
A month after five state of New Mexico employees testified in federal court that they were instructed to falsify emergency food aid applications, another lawsuit filed in Las Cruces district court made strikingly similar allegations. But instead of directing her allegations toward state government, Lorraine McCullough directed her allegations toward SL Start and Associates, a private, Washington state-based company that bills itself as a health provider for adults and children with developmental disabilities. That’s because this company is contracted with the state Human Services Department to manage the federal Temporary Assistance for Needy Families Program (TANF). TANF is the program most commonly called welfare. Locally, the program is called New Mexico Works.
A federal judge has ordered an independent “special master” to oversee the division within a state department that deals with food and medical assistance for the poor. On Tuesday, federal judge Kenneth Gonzales formally accepted a July proposal from federal magistrate judge Carmen Garza to appoint a special master. The special master will oversee the processing of Medicaid and Supplemental Nutrition Assistance Program benefits at the embattled state Human Services Department. Gonzales also gave the special master the power to hire consultants who “will have the same access the staff, records, persons, facilities or sites of services that … the special master determines is necessary.”
This special master will be tasked with bringing HSD’s benefits processing practices into compliance with federal law. Only the federal court will have decisionmaking power over the special master, who is yet to be determined.
The results of a state investigation into allegations of falsified food aid applications at the Human Services Department leave several questions unanswered. But they do acknowledge cases that should have qualified for emergency food aide “showed the potential falsification of assets” that caused benefits to be denied or delayed to people who should have received it. As both HSD officials and attorneys for the Center on Law and Poverty said this week in federal court, HSD’s investigation into the issue that has rocked the agency since April isn’t finished. HSD Inspector General Adrian Gallegos’ written report reflects this. “Until the investigation is complete and all facts are known, a determination of whether the allegations have been substantiated or not cannot be drawn,” he writes.
The state Human Services Department missed a Friday deadline to file an internal report investigating allegations of falsifying food aid applications to deny emergency benefits to the needy with a federal court. Earlier this week, Federal Magistrate Judge Carmen Garza ordered the department’s report unsealed and sent to court by 5pm Friday evening. But HSD attorneys cited technical problems with filing the report on the federal court database where the public can access it online. Related: Incomplete SNAP report finds possible internal falsifications
Instead, HSD attorney Natalie Bruce filed a notice to court Friday evening after 5pm “to let the Court and all interested parties know that I … attempted to timely file the redacted [Office of the Inspector General] report and corresponding exhibits and was unable to accomplish this task.”
While Bruce was unable to file the report online, the attorney noted that she sent all the documents to attorneys for plaintiffs in the Hatten-Gonzales case, who are accusing HSD of improperly processing benefits for Medicaid and the Supplemental Nutrition Assistance Program, formerly known as food stamps. She also wrote that the department is sharing the documents “with any interested reporter.”
NM Political Report eventually obtained the internal report at 7:40 pm Friday evening from HSD spokesman Kyler Nerison.
LAS CRUCES —Two employees who testified in federal court about alleged falsification of food aid applications at the state Human Services Department have since claimed that the agency retaliated against them. [perfectpullquote align=”right” cite=”” link=”” color=”” class=”” size=””]No ads. No clickbait. Just news. [/perfectpullquote]This is according to testimony from a federal court hearing this week in an ongoing federal lawsuit, where plaintiffs accuse HSD of instructing employees to falsely add assets to some applications for Medicaid and the Supplemental Nutrition Assistance Program, formerly known as food stamps.
LAS CRUCES — In a scene of high drama reminiscent of the TV drama “Law and Order,” three prominent state Human Services Department officials invoked their fifth amendment rights nearly 100 times in federal court Friday afternoon. Their refusal to answer questions came directly after sworn testimony from six HSD employees who alleged a widespread practice of fraudulently altering federal food benefits applications. The practice, according to eight former and current HSD employees who testified in federal court last month and today, amounts to adding false assets to the applications of people who would otherwise qualify for emergency aid from their Supplemental Nutrition Assistance Program, otherwise known as food stamps. “I still don’t understand why I had to falsify assets,” Shar Lynne Louis, a case processor at HSD’s Income Support Division (ISD) office in Gallup who retired last July, said in court. Louis testified that the state had been practicing the pattern of fraud since at least 2003, when she first came to the department.
State Auditor Tim Keller announced Friday an investigation by his office into allegations that the state instructed employees to commit fraud on federal food stamp applications. Keller wrote on Twitter that he “has opened a case to look into the allegations of food assistance application fraud by HSD.”
A spokeswoman for the state auditor said he opened the case after learning about the allegations that came up in federal court. The news came one day after five Human Services Department employees testified that the department instructed them to falsify emergency applications for Supplemental Nutrition Assistance Program benefits. HSD officials wanted employees to add fake assets to several emergency SNAP to cut down the department’s high numbers of overdue emergency applications, according to the multiple testimonies. Federal law requires those who qualify for emergency SNAP benefits to receive benefits within seven days of applying.