COUNTY WANTS FRAUD OFF THE MENU ELECTRONIC FOOD STAMPS RIPE FOR SCAMS.

Byline: TROY ANDERSON Staff Writer

The Board of Supervisors ordered an investigation Tuesday into the prevalence of food-

stamp trafficking in Los Angeles County amid concern the scam is costing taxpayers tens of millions of dollars.

The supervisors gave the District Attorney's Office, Department of Public Social Services and the Countywide Criminal Justice Coordination Committee 45 days to develop a program to identify, prosecute and prevent food-stamp trafficking.

Under the scam, grocery and convenience stores exchange electronic food stamp benefits -- often fraudulently obtained by the holder -- typically for 50 cents on the dollar and pocket the difference.

``We believe it's a very significant problem,'' said Tony Bell, spokesman for Supervisor Michael D. Antonovich. ``And we are concerned about the role of organized crime in this.''

The vote comes on the heels of accusations from a former DPSS employee and a welfare fraud prosecutor that the county's welfare system fosters a culture that tolerates and exacerbates fraud by failing to adequately verify the eligibility of food stamp recipients.

District Attorney Steve Cooley said he is eager to work with DPSS to develop a program that helps prevent food-stamp fraud.

``It's time for an attitude change,'' Cooley said. ``Those who would give out public benefits should recognize first and foremost it's taxpayers' money -- hard-earned money -- and it should be guarded and protected against those who want to rip off the system.''

Cooley, former head deputy in the Welfare Fraud Division, said he's suggested to the county grand jury on several occasions that more needs to be done to ensure DPSS workers verify that welfare applicants qualify for benefits.

``This has been an ongoing battle for literally many years -- and it's almost a philosophical battle,'' Cooley said. ``There appears to be -- and this is almost a general assessment -- an attitude that a certain amount of fraud is an acceptable cost of doing business of handing out these benefits.''

The federal Food Stamp Program, which provides $29 billion in annual benefits, now provides recipients with electronic benefit transfer cards instead of food stamps.

Recipients enter their personal identification numbers and swipe the cards, much like a debit card, through a terminal at authorized grocery stores.

James Baker, assistant head deputy in the D.A.'s Office's Welfare Fraud Division, said investigators are concerned about unscrupulous retailers as well as people who have obtained the electronic benefit teller machines and are using them on the streets.

Baker said Los Angeles police officers arrested a man last week on Skid Row who had a food stamp electronic benefit transfer machine and was swiping cards and giving people 50 cents on the dollar.

Baker said DPSS investigators have told him some people tell DPSS they lost their cards so they can obtain more cards and make more money.

``As of now, there appears to be little deterrence,'' Baker said. ``Obviously, you can never catch all of them. But if you start by catching some of the major ones and prosecuting and punishing them, you can deter others from committing the crimes.''

troy.anderson(at)dailynews.com

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