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The move came a day after The Times asked the administration how much welfare cash had been withdrawn at 17 adult clubs in recent years and less than a week after The Times reported that more than half the casinos and state-licensed poker rooms in California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“We'll take a wide-ranging look and apply some common sense to the list of outlets where cash assistance should not be withdrawn,” Department of Social Services spokeswoman Lizelda Lopez wrote in an e-mail to The Times on Tuesday evening, announcing that her department had “taken steps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and truly all for that,” said Merle Matias, manager at Sam’s Hofbrau in downtown Los Angeles, where $2,159 had been withdrawn, according to Department of Social Services officials.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Star Strip manager Joey Mancini said state officials must be wrong about the $1,265 they said had been withdrawn from his club’s ATM.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

[USMC Mama]

A few people at Social Services deserve a firing for allowing this to happen. "Check and Balance" and Proper Control" are just a few of the first topics covered in Accounting 101... Clearly this is a heavily mismanaged program and needs TOTAL reform.

[FutureView]

So what. This is California. We have to expect these things.

[Freud]

Then the people who are using those ATM's at the strip clubs should be striped of their state-issued ATM cards.

Posted by: tom clark | June 30, 2010 at 02:25 PM

I disagree. This sounds like an administrative problem, if you're looking for someone to blame.

[Freud]

Why doesn't the article reveal the fees that these machines charge their customer? ATM's at strip clubs are notorious for high fees. It seems like a strong story would include this info in the news story. Write a more complete story, folks!

[Trena]

I was thinking to myself who are the people using the ATM's at strip clubs and casinos. Then it came to me, it must be the women who work there. These women are doing what they feel they have to do to keep food on the table (I'm just happy they're working). Who can truly survive off a welfare check alone? If it is the women who work there, I don't see anything wrong with it. This state has bigger problems to worry about than people getting their welfare benefits out of a strip joint ATM machine. Why don't Shwarzenegger concern himself with the crisis that's happening within our educational system. We are losing our teachers and they are being forced into new professions and we may not get them back. Maybe education is the key to getting people OFF welfare and then you don't have to worry about what machines they're withdrawing their benefits from because they won't need them. Just a thought!

[Chico Gonzalez]

When I get my welfare check the first thing I do is go to the strip club to partay!

[innercity]

Great article to get people outraged over peanuts, while Wall Street continues to fleece us all for generations to come.

[Mike]

I'm glad they are doing this but they are foolish to think that just from removing it from those locations that it won't be used at that location when they get cash out...how stupid did they have to be to allow them to pull out cash there. Another sign of our corrupt system at work.

How poor can you be if you are pulling money out to pay for a lap dance. I guarantee a good portion of this is stolen social security numbers of illegals claiming welfare and then using it for a good time. If we would only just have a thumb print with our social security numbers this would never happen as a quick thumb print would tell who really owns the social security number and would not get them their welfare.

[hunterr83]

Mike Burke, then they can cross the street and get their food there or have the manager take the cost of the food out of their paycheck. Better yet, since they're on welfare, they should be making their own lunch and bringing it to work. Problem solved.

[bill martin huntington beach]

i just can understand this stuff drugs whores booze gambling they should get no cash just find out how much rent is they get a check made out to landloard electric for electric co etc no cash at all no booze drugs etc they should be here legally no wet backs no drug dealers i dont pick up trash on the side of the fwy or the home town of welfare cheaters clean your town bums if not no money. Make sure they are drug tested too

[Rik]

That's the last straw. I refuse to continue to patronize these establishments. Sorry girls.

[Mike]

Patriot-I agree there is more corruption than just this. This is much easier to fix than the rest and it is a lot more than just $12,000. It is in the millions, it is just easier to track it when they directly withdraw it at a casino or strip club. My guess is the $12,000 is also a misprint.

[max ferrington]

Whatta joke..... Wake up, America!!!!!!!! And vote the Social Democrats OUT in November. And I bet that ALL of the proud card carrying members were also ILLEGAL ALIENSSSSSSSSSSSSSS.

[troy]

You'd be surprised how many dancers are on welfare, using those cards.

[Mike]

There is a better plan then just limiting where they can spend the money with coupons or vouchers. Make our welfare a working system. You report to an office they give you a job of the long list of jobs that need to be done...clean streets and freeways. Babysit children for the other welfare recipients. Job placement. Daycare etc etc. Then you would get a lot of the drug dealers, prostitutes and lazy people who are pieces of crap off of it. Then do a mandatory drug test weekly to get your check, that would eliminate anyone from being a drug addict on welfare. Then require fingerprints for social security numbers to eliminate anyone who doesn't belong to that number from collecting, which would stop all the illegals.

Our cities would be cleaner people would be more willing to get a job, and they would be at least doing something for that check. Many people need it many more abuse it. Lets get rid of the abusers so the needy can get what they need to fight for a better life.

[Brandon]

C'mon...being on welfare and sitting around all day doing nothing can be very stressful...(too stressed to even look for a job)...so I thought I'd chill and help some girls make money so they can take care of their families. It's not like I used it for booze...(well...maybe a few beers)...but that helped the bar owner make money too.
So... iz all gud.

[Mike]

There is a better plan then just limiting where they can spend the money with coupons or vouchers. Make our welfare a working system. You report to an office they give you a job of the long list of jobs that need to be done...clean streets and freeways. Babysit children for the other welfare recipients. Job placement. Daycare etc etc. Then you would get a lot of the drug dealers, prostitutes and lazy people who are pieces of crap off of it. Then do a mandatory drug test weekly to get your check, that would eliminate anyone from being a drug addict on welfare. Then require fingerprints for social security numbers to eliminate anyone who doesn't belong to that number from collecting, which would stop all the illegals.

Our cities would be cleaner people would be more willing to get a job, and they would be at least doing something for that check. Many people need it many more abuse it. Lets get rid of the abusers so the needy can get what they need to fight for a better life.

[SJ]

It doesn't really matter where they withdraw the money from we need to limit the ability to spend on non necessary items. You can take out money in a grocery store and buy cigarettes and alcohol.

[Bob]

Who cares where they get the cash? If they're giving them ATM cards they can get cash anywhere. What happened to food stamps where you can only buy food? I know people sell them for cash but at least the system tries to make them use them for what they were intended.

[Commonmsense]

I need to make my car payment, how do i get one of those ATM cards Mr. Schwarzenegger

[JonathanK]

This turned into a NON-NEWS. Casinos and strip club do hire minimum wage low income group people. The amount is such that there is absolutely no sign of regular use and amount seems to just enough to guess that it was withdrawn by people working related to near or in the facility. I absolutely don't see anything wrong with this picture. We should move on. Creating unnecessary rules and regulations and exception only costs the system more.

[Pete the Fed]

JJ

There is a difference between being a legal immigrant and being an illegal immigrant. Calling an illegal immigrant a criminal is not racist. It is called law abiding. Break the laws of the US and you are entitled to be called a criminal.

[True Freedom]

There has got to be a better way to help the truly needy pay for food, housing and clothing than to give them an ATM card. This is just asking for trouble.

[Ava]

Welfare went electronic (atm cards) ages ago. Just because in 2 years a total of $12,000 was taken from cash machines at strip clubs (do you have any idea how many people are on tanf in CA?!) does not mean welfare recipients are irresponsible or mooching off the system.

[TIME FOR REAL CHANGE]

The people using the states benefits in these places should have their benefits revoked!!!!!!!!!!!!! Any idiot can come up with that!! Why are these people running these programs so stupid!!!!!!!!