3 indicted in feeding-program fraud

A three women were charged Thursday with conspiracy to fraudulently obtain federal money from a feeding program, officials say.

Gladys King, 34, of England; Tonique Hatton, 37, of North Little Rock; and Jacqueline Mills, 39, of Helena-West Helena were indicted on charges of conspiracy to commit wire fraud and paying a bribe to an agent of the state agency receiving federal funds, U.S. Attorney for the Eastern District of Arkansas Christopher Thyer said in a statement.

Mills is also charged with wire fraud, paying bribes and engaging in money laundering, and King and Hatton are charged with accepting bribes, Thyer said.

The U.S. Department of Agriculture funds the Department of Human Services’ Child and Adult Care Feeding Program and the Summer Food Service Program. Hatton and King, who worked for Human Services, determined eligibility of feeding program sponsors, and Mills participated as a sponsor for the program.

Thyer said Mills made bribe payments to Hatton and King, and in exchange for the bribes, Mills would submit inflated numbers of meals served at her feeding sites, and Hatton and King would provide protection for Mills, Thyer said in a statement.

The statutory penalty for wire fraud and conspiracy to commit wire fraud is up to 20 years in prison and a $250,000 fine, and up to three years of supervised release. The statutory penalty for receipt of bribes, paying bribes and money laundering is up to 10 years in prison and up to a $250,000 fine, and up to three years of supervised release.

“It’s extremely disappointing to learn that people were reportedly cheating a program that feeds hungry children, especially in a state that has one of the highest rates of childhood hunger in the country,” Department of Human Services Director John Selig said in a statement.

The investigation is ongoing.

As a result of this case, the Department of Human Services has added five fraud investigators and three senior auditors to the Special Nutrition Unit; requested and received additional assistance from USDA to assist monitoring and sponsor review; put in place new state policies for the Summer Food Service Program aimed at improving training and program management; staff to oversee and assist sponsors with complying with state and federal procurement rules; further segregated job duties to ensure that the employee approving billing is not also the one responsible for monitoring the program; and engaged the auditors with the DHS Office of Quality Assurance to help provide further case review as needed.

Read Friday's Arkansas Democrat-Gazette for full details.

Upcoming Events