After alleging fraud, employees say state retaliated against them

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.

Group asks federal court to unseal state’s SNAP report

Attorneys for the Center on Law and Poverty are asking a federal court to unseal an internal state investigation into allegations of fraud in processing and falsely denying food benefits applications. In a motion filed today, the Center’s attorneys argued that the public’s “significant interest” in the matter outweighs the state’s arguments to keep the report on Supplemental Nutrition Assistance Program applications secret. “The Court’s actions in this case are of great public concern, as New Mexico has one of the highests rates of hunger in the United States,” the Center’s attorneys wrote. “The public this has an especially strong interest in having access to documents the Court uses to inform its decision affecting the class of food assistance applicants.”

The state Human Services Department was rocked in recent months after employees said they were instructed to add fake assets to emergency applications for SNAP, formerly known as food stamps, so applicants wouldn’t be eligible for the emergency benefits. Applicants seeking emergency SNAP benefits must face extreme levels of poverty to qualify.

HSD outlines plan to right ship in food benefits debacle

An official who pleaded her Fifth Amendment rights in court over widespread allegations of fraud in how the state administers the federal Supplemental Nutrition Assistance Program will take charge of a large portion of the state’s corrective action plan to fix many of the program’s problems outlined by the federal government. In May, Marilyn Martinez, the state Human Services Department’s director of the Income Support Division, appeared as a witness in federal court and refused to answer 39 questions from attorneys with the Center on Law and Poverty. Many of these questions centered on Martinez’s role in the alleged institutional practice of adding fake assets to emergency applications to deny benefits to people seeking aid from the program formerly known as food stamps. “Why did you think it was appropriate to be adding assets to case files in order to bar people from being approved for expedited SNAP?” attorney Daniel Yohalem* asked Martinez during her testimony. “I’m invoking my Fifth Amendment right,” Martinez responded.

Feds smack state for SNAP snafus

The federal government placed state Human Services Department on a “detailed corrective action plan,” mandating it correct its many problems with administering the Supplemental Assistance Nutrition Program (SNAP), the food benefits program formerly known as food stamps. In a May 27 letter to HSD Secretary Brent Earnest, U.S. Department of Agriculture Food and Nutrition Service Southwest Regional Administrator William Ludwig warned that failure to submit a plan “within 14 days of receipt of this letter” could lead to “further escalation.”

The potential fallout for New Mexico, according to the letter, includes “the possible suspension or disallowance of Federal funding for State administrative expenses.”

“It is imperative that HSD understand the severity and consequences outlined in this letter,” Ludwig wrote. On the surface, Ludwig’s letter faults HSD for giving SNAP benefits to people that it shouldn’t be. He details eight “severe compliance issues” where HSD broke federal regulations in its processing of SNAP applications. They include the department’s practice of keeping pending SNAP applications open for more than the required 60 days, approving applications without interviewing or determining a person’s eligibility for SNAP and failing to keep accurate records of clients.

Lawmakers question HSD head over SNAP fraud scandal

Just days after a state senator called for the resignation of New Mexico Human Services Department Secretary Brent Earnest, the two kept things relatively cordial with one another in their first public meeting since then. Sen. Jerry Ortiz y Pino, D-Albuquerque, chair of the interim Legislative Health and Human Services, gave the floor to Earnest during the Monday morning committee hearing by the committee to explain how he is addressing allegations in several court testimonies of a department policy to falsify and delay emergency food benefit applications. “I don’t believe that anything has been said about what you’re doing about that,” Ortiz y Pino told Earnest. Last week, Ortiz y Pino made a statement calling the alleged practice “completely unacceptable.”

“If Secretary Earnest did not know this was happening, he failed to lead the agency,” his statement said. “If he did know, but did nothing, then this is may be a very serious legal matter.”

During the hearing Monday, Earnest explained that since the allegations first surfaced in April, his department launched an internal investigation and issued a written directive to employees telling them to follow federal guidelines.