Thousands in welfare cash tapped at California strip clubs

California welfare recipients have been able to get taxpayer cash -- meant to feed and clothe needy families -- from ATM machines at strip clubs across the state, including some well-known gentlemen’s cabarets in Los Angeles.

More than $12,000 from the Temporary Assistance for Needy Families program was dispensed from the start of 2007 to the end of 2009 at clubs including Sam’s Hofbrau, Seventh Veil and Star Strip, according to officials at the Department of Social Services.

Gov. Arnold Schwarzenegger has ordered the department to remove the clubs from the official list of businesses where welfare recipients can withdraw benefits using state-issued ATM cards.

The move came a day after The Times asked the administration how much welfare cash had been withdrawn at 17 adult clubs in recent years and less than a week after The Times reported that more than half the casinos and state-licensed poker rooms in California appeared on an official website showing welfare recipients where they can access cash benefits.

Following that report, Schwarzenegger ordered the casinos struck from the state’s ATM network and directed the Department of Social Services to produce a plan to reduce “waste, fraud and abuse” in the welfare program.

“We'll take a wide-ranging look and apply some common sense to the list of outlets where cash assistance should not be withdrawn,” Department of Social Services spokeswoman Lizelda Lopez wrote in an e-mail to The Times on Tuesday evening, announcing that her department had “taken steps to deactivate ATMs in adult entertainment clubs.”

Strip-club managers seemed shocked that welfare benefits were accessible through their ATMs.  In most cases, the machines were provided by a third party, the managers said, and they had no way of knowing their ATMs are part of the state system.

The state contracts with the Quest ATM network.

“If there’s a way that the ATM can reject their card if they’re on welfare, I’m really and truly all for that,” said Merle Matias, manager at Sam’s Hofbrau in downtown Los Angeles, where $2,159 had been withdrawn, according to Department of Social Services officials.  “I don’t think it will affect us at all.”

Star Strip manager Joey Mancini said state officials must be wrong about the $1,265 they said had been withdrawn from his club’s ATM.  The Quest symbol isn’t on the machine, he said, adding that he thought any system that allowed access to welfare benefits at a strip club should be reformed: “This is not what that money is for.”

A manager at Seventh Veil declined to comment.

-- Jack Dolan in Sacramento

Comments

[tiredofbleedingheartliberals]

“We'll take a wide-ranging look and apply some common sense to the list of outlets where cash assistance should not be withdrawn,” Department of Social Services spokeswoman Lizelda Lopez wrote in an e-mail to The Times
Well..duh..might that not have been a logical idea at the onset of this program.
gee.. Common sense is always a good idea especially at the beginning of a plan.
Just another fine example of our liberal government's irresponsible attitude toward our tax dollars.
Oh and by the way there were also machines with this feature at poker/gambling clubs. NPR said that one was positioned so well that the welfare recipient didn't even have to leave his chair or interrupt the game to get the cash..... Ante up,boys......
It would be nice to believe that perhaps the withdrawal feature at those particular machines was to help the poor people who worked those long hours there.
Both of them
Yeah right!!!!
If you believe that I have this nice bridge in.............

[JosephDPhillips]

This is much ado about nothing. The problem is that the welfare recipients are getting cash instead of vouchers. Nothing stops a holder of one of these stupid EBT cards from withdrawing cash at a supermarket and spending it at the strip club, casino or liquor store a block away. And nothing stops that person from spending the cash on crack cocaine, either.

This is what happens when you put Democrats in charge of social programs.

[Robert]

It seems clear that the people using their ATM cards dont need the money so why dont the stop all payments to these people. Problem solved!

[Fact Finder]

@ "Patriot," who cries out, "look at the bondage club visit that was paid for by the Republican National Committee."

Question: Do you truly not understand the distinction between PUBLIC, TAXPAYER money and private funds?

[kuruc]

the poor welfare receipiants live next door to the casinos and stripper clubs. that's why they cash money out there. they do not use the facilities. i will sign a paper that confims this. you mean spirited republicans, you say this because all welfare receipiants are democrats. you are jealous.

[Reilleyfam]

12,000 over 36months equals 300 a month - that could be from 1 person. This is not very much money over that period of time and we have NO evidence that it was used there. This is a lame attempt to rally up the haters.

[Monica]

Fact: people receiving state benefits usually live in crappy neighborhoods.

Fact: people in nice neighborhoods don't like having strip clubs or casinos next door.

Fact: supermarkets, banks, and other such noble businesses that often house ATMs are hard to find in crappy neighborhoods.

Conclusion people jump to: folks are taking TANF money out of ATMs in casinos and strip clubs because "there gamblin' wif gubmint monies OMG!"

Speculation: There are probably some folks who are. Most of them are legitimately poor, and are making some very bad decisions (are we giving counseling and proper intake to TANF recipients, to diagnose gambling addictions, substance abuse issues, etc.?) However, some of these folks may be using those ATMs because either (a) they WORK there, or (b) it's the safest ATM location they have access to where they live.

I'd like to see a map of all the other EBT locations within a quarter-mile of the machines in casinos and strip clubs that got the most play. I wouldn't be surprised to learn that there aren't very darned many.

BTW, $12,000 is a *very* small number when you're talking about TANF recipients in California. We've got a huge population, and a lot of them are in poverty.

[Ed Coughlin]

This is about 3/10000 of a percent of the total budget for this program in California. This group of people are probably among the most moral in the state by this measure. Shame on you LA Times for sensationalizing this pittance. Have you no real reporting to do. You are just reinforcing the opinions of right-wing ignorants that these poor folks are living high on the hog.

[End Welfare]

Why is anyone on welfare allowed to withdraw cash period!? If the whole point is to feed these lazy people that continue to have babies (or are related to Obama) then issue them credits at super markets! If they can't afford a place to live then that's their dumb fault for getting knocked up or being too lazy to work in the first place. They can go live with a relative, friend, drug dealer... whatever but this needs to stop already! I have to work for a living to feed my family and so should these lazy losers.

[Pissed Off About Overtaxing and Overspending]

To the liberal who said it is the same, The Republican National Committee funds did not come from taxpayer money, moron.

This is taxpayer money going to ensure that people aren't starving to death.... and they are using it for lap dances.

[vigilante]

Give em an inch, and they'll take a mile. The adage is true for any handout. Abolish welfare for everyone except the disabled and children without parents.

[John Holmes]

Strippers stimulate the economy w/ shoes, clothes, booze, drugs, and cars. Gosh talk about no stimulation at clubs. Now they are all going to quit and go back to school w/ their clothes back on. So sad.

[Peter]

They already did a study and found .07%, less than 1% of illegal immigrants received public assistance in the Los Angeles County, so I really doubt that ATM $ was abused by them. I also work hard and pay A LOT and A LOT of taxes, but illegals are not the problem for you and me, barely making ends meet, it is the very wealthy that inflate our gas prices, our housing prices and everything else in between. We need to target the correct people and fix it NOW!

[Justice]

We've got to get rid of these Republican Governors, they have absolutely no control as to what is going on. I thought that the recall of Grey Davis and replace him with Republican Arnold was suppossed to remedy the budget problems, we are in a bigger mess now than we ever were with Grey Davis. If you have the chance to vote a Rethuglican out of office then you better take advantage of that chance. Look what the Bush Administration did to the country, Just Say NO to Rethuglicans.

[Art Sanchez]

How about this, we just kill and suspend all welfare benefits towards the people that have gone to these strip clubs. I cannot stand people who take advantage of this system. I can't believe welfare even exists! Is this where a portion of my money go to? Welfare should be banned, destroyed, non-existent, and so forth. we need to use our tax money elsewhere.

[My Truth Hurts]

Who cares? What about all the money poured into the wars of the last 10 years? Where's all the money that went to bail out the banks? Who is chasing after government contractor abuse and fraud?

I guess when the rich welfare recipients (ie banksters, defense contractors and security contractors) are as accountable for the money they get as the poor welfare recipients (ie poor people without jobs) then maybe I will care about ATMs at strip bars. But until we have equal outrage for equal abuses and wastes this is a non-story.

[Roy Vanderleelie]

Time to get rid of welfare, I am tired of paying for these people. Get rid of the illegals and make the welfare recipients take their jobs, problem solved.

[Dan Brown]

Make welfare recipients, wait in line at the Welfare Office and provide proof of need and citizenship each and every time they get anything that can be traded for cash. EVERYTIME!

[Am-mazed]

From Bustin' butt tax payer money, to welfare agency, to "needy man,"
to stripper's garter. What a long strange trip it's been.

[Jamie]

You can use this at a bar down the street from my home. There is a neon sign that says EBT welcome! I am guessing that would be the same type of card issued correct?

[Dana Panzer]

GREAT!!!! Iam a single parent and can't get food stamp and this is how you allow people who do not need it to live high on the hog. I cannot get food stamp because according to the welfare office I make to much money I make 10.50 an hour.
with no other income.... Thats the crime. My son and I have not eaten for 4 days

[Krissy]

Absolutely unreal how assanine this state and its leaders can be. Im so disgusted I cannot even finish my comment.

[J. Galt]

How do you send cash payments and expect anything else?

Who are the recipients of welfare? The majority are lazy bums without self-respect.

These bums flock to California where socialist's liberals seek to destroy business and anyone that would dare create wealth for themselves...

BE PROUD, MAKE MONEY, MAKE PROFITS, DESTROY THESE SOCIALISTS IN CALIFORNIA...

VOTE OUT HENRY WAXMAN,
VOTE OUT BARBARA BOXER,
VOTE OUT ALL WHO RAISE THE COSTS AND BURDENS ON EMPLOYERS
VOTE OUT ALL WHO RAIST TAXES ON THE WEALTHY, THESE FOLKS ARE THE LAST HOPE ANYONE HAS LEFT IN THIS DEBT RIDDEN DEBACLE OF A NATION.

[panchang810]

Illegal immigrants can never have access to any State or Federal financial assistance like welfare assistance that was discussed in this article because the govt. system will easily detect if their SS# is fake or real.

Those who keep on whining about the illegal immigrants receiving government money like welfare money are ignorant of the fact. The government has the best system to easily check if your SS# is fake or real, that's the truth. What the illegal immigrants are enjoying are the assistance from schools and hospitals because those institutions don't require any legal papers in their admittance procedures as long as they provide services to people who will need their services.

Know the truth first before opening your mouth and don't underestimate the capabilities and power of the govt. system in determining the legality of their recepients. By the way, I'm a single person so I pay higher taxes compared to those who have kids, whether those people with kids are legal or not. Am I bitter about being a tax payer? NEVER! Because no nation will ever achieve progress WITHOUT TAXES.

[Krissy]

Mike Burke, Get a grip!!!! If they WERE working they wouldn't get welfare, trust me you have to be destitute for any help. Time to remove your rose colored glasses and wake up to welfare fraud.