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Colorado Welfare Debit Cards Used At Casinos, Strip Clubs 03/01/2012
Denver Post:
Denver Post:
Debit cards issued to provide assistance to welfare recipients were used to withdraw cash at ATMs in strip clubs, casinos, bingo halls and amusement parks, a 9News investigation found.
As a result, more than $1 million in welfare funds goes to ATM owners and banks through transaction fees every year.
“When you see the type of obvious abuses that you’ve shown, it says there are people on welfare that should not be,” said Jon Caldara of the conservative watchdog group Independence Institute.
The 9News investigation included the review of 222,000 transactions involving Colorado Quest cards, the state-issued debit cards welfare recipients use to access cash at ATMs. The transactions occurred during a six-month period in 2011 involving a total of $8.1 million in ATM withdrawals.
While state law bans welfare transactions at liquor stores, casinos and bingo halls, it does not at strip clubs.
But the 9News investigation found numerous examples of cash withdrawals at businesses where transactions are banned — and numerous examples of high ATM fees ultimately paid by the state even where transactions are allowed.
For example, 9News calculated that more than $40,000 was withdrawn from ATMs in metro-area liquor stores between May 1 and Nov. 30.
“I think it’s wrong,” said Steve Ziporlin, who works at a grocery store near Josh Liquor. “The money is supposed to be used for groceries and sundries.”
9News found numerous transactions at ATMs in casinos in Black Hawk.
“The state is giving them money, and to come up here and play with it, I think that’s defeated them and their families,” Pat Schmidt said as she left a casino. “It comes out of our pocket.”
The 9News investigation also found transactions at Elitch Gardens, at Disneyland and Universal Studios in California, at a liquor store in Los Angeles, and at ATMs along the Las Vegas strip.
At strip clubs, where transactions are not banned by state law, 9News found numerous transactions, including 14 at Shotgun Willie’s in Glendale for a combined amount of $1,500.
Taxpayers also covered the $6.50 ATM fee for each withdrawal.
Out of the 222,000 transactions reviewed by 9News, 80 percent occurred at ATMs that applied a fee to accounts, resulting in about $540,000 in fees.
As a result, more than $1 million in welfare funds goes to ATM owners and banks through transaction fees every year.
“When you see the type of obvious abuses that you’ve shown, it says there are people on welfare that should not be,” said Jon Caldara of the conservative watchdog group Independence Institute.
The 9News investigation included the review of 222,000 transactions involving Colorado Quest cards, the state-issued debit cards welfare recipients use to access cash at ATMs. The transactions occurred during a six-month period in 2011 involving a total of $8.1 million in ATM withdrawals.
While state law bans welfare transactions at liquor stores, casinos and bingo halls, it does not at strip clubs.
But the 9News investigation found numerous examples of cash withdrawals at businesses where transactions are banned — and numerous examples of high ATM fees ultimately paid by the state even where transactions are allowed.
For example, 9News calculated that more than $40,000 was withdrawn from ATMs in metro-area liquor stores between May 1 and Nov. 30.
“I think it’s wrong,” said Steve Ziporlin, who works at a grocery store near Josh Liquor. “The money is supposed to be used for groceries and sundries.”
9News found numerous transactions at ATMs in casinos in Black Hawk.
“The state is giving them money, and to come up here and play with it, I think that’s defeated them and their families,” Pat Schmidt said as she left a casino. “It comes out of our pocket.”
The 9News investigation also found transactions at Elitch Gardens, at Disneyland and Universal Studios in California, at a liquor store in Los Angeles, and at ATMs along the Las Vegas strip.
At strip clubs, where transactions are not banned by state law, 9News found numerous transactions, including 14 at Shotgun Willie’s in Glendale for a combined amount of $1,500.
Taxpayers also covered the $6.50 ATM fee for each withdrawal.
Out of the 222,000 transactions reviewed by 9News, 80 percent occurred at ATMs that applied a fee to accounts, resulting in about $540,000 in fees.
, and not the movie
