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! CITY HALL OFFICE 250 BROADWAY, ROOM 1781 NEW YORK, NY 10007 (212) 788-6853 FAX: (212) 788-1656 [email protected] THE COUNCIL OF THE CITY OF NEW YORK ANNABEL PALMA COUNCIL MEMBER, 18 TH DISTRICT, BRONX CHAIR OF GENERAL WELFARE ! DISTRICT OFFICE 1041 CASTLE HILL AVENUE BRONX, NY 10472 (718) 792-1140 FAX: (718) 931-0235 December 14, 2010 Robert Doar Commissioner Human Resources Administration 180 Water Street New York, NY 10038 Dear Commissioner Doar, We were disturbed to read yesterday that three current and former HRA employees have been charged with stealing $8 million in food stamp benefits. This is clearly the act of individuals intent on defrauding the program for personal gain, and they should be prosecuted to the full extent of the law. However, it also raises serious concerns about the ways in which HRA monitors for fraud in the food stamp system. You are quoted in yesterday’s New York Post as saying, “we are reevaluating our processes to be sure this unacceptable offense is prevented in the future.” We hope that this reevaluation includes a substantial policy shift away from the use of finger imaging. The finger imaging of food stamp applicants is currently the primary method used by HRA to prevent fraud. This method is only useful in detecting one kind of fraud – namely, a single applicant receiving multiple benefit cases. That kind of potential fraud pales in comparison to incidents of government employees falsifying cases or stores illegally giving cash in exchange for benefits. Historically, the largest cases of fraud have involved food stamp recipients selling their benefits for a lower cash value, to store and restaurant owners who then turn them in for reimbursement. Because these kinds of cases – such as a $60 million scheme in 1998 – involve lawful food stamp recipients, they are undetectable through the use of finger imaging. In fact, in the full history of food stamp finger imaging in New York City, there is not a single instance in which it has been used to prosecute suspected fraud. On the contrary, it is a harmful, destructive, and discriminatory practice that does nothing to prevent the kind of fraud we see being prosecuted today.

Palma Letter to Doar

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Page 1: Palma Letter to Doar

!"CITY HALL OFFICE 250 BROADWAY, ROOM 1781

NEW YORK, NY 10007 (212) 788-6853

FAX: (212) 788-1656 [email protected]

THE COUNCIL OF

THE CITY OF NEW YORK

ANNABEL PALMA COUNCIL MEMBER, 18TH DISTRICT, BRONX

CHAIR OF GENERAL WELFARE

!"DISTRICT OFFICE 1041 CASTLE HILL AVENUE

BRONX, NY 10472 (718) 792-1140

FAX: (718) 931-0235

December 14, 2010 Robert Doar Commissioner Human Resources Administration 180 Water Street New York, NY 10038 Dear Commissioner Doar, We were disturbed to read yesterday that three current and former HRA employees have been charged with stealing $8 million in food stamp benefits. This is clearly the act of individuals intent on defrauding the program for personal gain, and they should be prosecuted to the full extent of the law. However, it also raises serious concerns about the ways in which HRA monitors for fraud in the food stamp system. You are quoted in yesterday’s New York Post as saying, “we are reevaluating our processes to be sure this unacceptable offense is prevented in the future.” We hope that this reevaluation includes a substantial policy shift away from the use of finger imaging. The finger imaging of food stamp applicants is currently the primary method used by HRA to prevent fraud. This method is only useful in detecting one kind of fraud – namely, a single applicant receiving multiple benefit cases. That kind of potential fraud pales in comparison to incidents of government employees falsifying cases or stores illegally giving cash in exchange for benefits. Historically, the largest cases of fraud have involved food stamp recipients selling their benefits for a lower cash value, to store and restaurant owners who then turn them in for reimbursement. Because these kinds of cases – such as a $60 million scheme in 1998 – involve lawful food stamp recipients, they are undetectable through the use of finger imaging. In fact, in the full history of food stamp finger imaging in New York City, there is not a single instance in which it has been used to prosecute suspected fraud. On the contrary, it is a harmful, destructive, and discriminatory practice that does nothing to prevent the kind of fraud we see being prosecuted today.

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To make matters worse, finger imaging needlessly stigmatizes a critical safety net for hungry New Yorkers, deterring nearly 30,000 eligible New Yorkers from signing up. This in turn costs our city over $54 million a year in foregone benefits that could be spent at local stores, supporting our economy in a time of great financial insecurity. And it quite literally takes food out of the mouths of hungry New Yorkers. We, along with a number of our Council colleagues, have urged you on numerous occasions to end the practice of finger imaging food stamp applicants in New York City – one of only four localities in the country that maintain this archaic requirement. It leads to unnecessary attention and resources focused on benefit recipients who are trying desperately to feed their families. As was made quite apparent by recent news, our attention and resources would be much better devoted to combating genuine instances of large-scale fraud. The time has come for New York City to decriminalize hunger; we look forward to meeting with you to discuss this matter further. Please have your office contact my Chief of Staff, Meghan K. Lynch, at 212-788-6853 or [email protected] to set something up at your earliest convenience. Sincerely,

Annabel Palma Albert Vann Council Member Council Member District18, Bronx District 36, Brooklyn

Jimmy Van Bramer Melissa Mark-Viverito Council Member Council Member District 26, Queens District 8, Manhattan

Brad Lander Deborah Rose Council Member Council Member District 39, Brooklyn District 49, Staten Island

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Vincent J. Gentile Daniel Dromm Council Member Council Member District 43, Brooklyn District 25, Queens

Fernando Cabrera Helen Diane Foster Council Member Council Member District 14, Bronx District 16, Bronx

Letitia James Elizabeth Crowley Council Member Council Member District 35, Brooklyn District 30, Queens

Inez Dickens Charles Barron Council Member Council Member District 9, Manhattan District 42, Brooklyn

Rosie Mendez Gale Brewer Council Member Council Member District 2, Manhattan District 6, Manhattan

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Jumaane D. Williams Leroy G. Comrie, Jr. Council Member Council Member District 45, Brooklyn District 27, Queens

James Sanders, Jr. Sarah Gonzalez Council Member Council Member District 31, Queens District 33, Brooklyn

Stephen Levin Maria del Carmen Arroyo Council Member Council Member District 33, Brooklyn District 17, Bronx

Margaret Chin Ruben Wills Council Member Council Member District 1, Manhattan District 28, Queens

Joel Rivera Mark Weprin Council Member Council Member District 15, Bronx District 23, Queens

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Robert Jackson Karen Koslowitz Council Member Council Member District 7, Manhattan District 26, Queens Ydanis Rodriguez Council Member District 10, Manhattan CC: Governor-Elect Andrew Cuomo Mayor Michael R. Bloomberg Speaker Christine Quinn

Deputy Mayor Linda Gibbs Executive Deputy Commissioner Elizabeth Berlin Kathryn Dyjak, Deputy Commissioner of Legislative Affairs, HRA Massiel Garcia, Legislative Representative, Office of Mayor