Last week It was announced that California welfare recipients were using their state-issued debit cards to obtain cash from ATM machines located in casinos and gaming centers. Now, it has been reported that California welfare recipients have been able to obtain cash from ATMs at strip clubs.
According to a report from the LA Times, more than $12,000 from the Temporary Assistance for Needy Families program was received at ATM machines located in strip clubs across the state. In theory, the money is supposed to be used for necessities like food and clothing, however it seems that other needs are being met instead.
The cards were used at some of the upscale strip clubs including Star Strip and Seventh Veil, according to authorities from the California Department of Social Services. The $12,000 was obtained between 2007 and 2009.
A total of 17 strip club ATMs had been used by welfare recipients. Gov. Schwarzenegger has since ordered the department to remove the clubs from the official list of businesses where welfare recipients can withdraw benefits using state-issued ATM cards. Now the governor has mandated that a plan be developed and implemented to obviate fraud and waste in the Stet system. –torrance stephens, ph.d.
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