Advocates for Children and Families
And California Family Advocacy Centers

Advocates for Children and Families, PO Box 10
Los Gatos, CA 95031
California Family Advocacy Centers
AFCAF Phone 408-395-6999
Email chw@jps.net
CFAC
Email jradvocate@juno.com

April 5, 2001

Mr. John Ashcroft
Attorney General
U.S. Department of Justice
950 Pennsylvania Av
Washington, DC 20530

Subject: Investigation Requested Under the Federal False Claims Act or
Other Remedy for California and Counties Fraud on Federal Tax Payers for
Billions of Dollars

Dear Mr. Ashcroft:

Our agencies have received a response letter from the U.S. Department of Justice, dated March 29, 2001, written by Karen A. Morrissette, the Deputy Chief, Fraud Section of DOJ. Please see attached. Her letter is in response to our letter to you, dated February 9, 2001, also attached. Our letter details how the State of California Department of Social Services and the County Department of Social Services are defrauding the federal taxpayers for billions of dollars per year by falsely claiming federal dollars for Family and Children Services. Ms. Morrissette indicated that in our agencies previous correspondence with DHHS/OIG that they admitted they did not have oversight in these fraudulent matters. Ms. Morrissette suggests that our agencies bring the evidence of fraud to the agencies that have committed the fraud, which seems a bit irregular. Our agencies, in fact have contacted Gray Davis, Governor of California, Rita Saenz, Director of Social Services for California and individual Social Services Directors in the California Counties about the fraudulent actions, but as expected this has gone in one ear and out the other. These fraudulent actions have been brought to various Federal and California State Legislators, including Vasconsellos, Diane Feinstein and Barbara Boxer who all have passed the buck, or not responded at all. It is obvious to the claimants and our agencies that no one will look at this, because the money coming into California, from Federal Taxpayers, by fraudulent claims, through DHHS, is vast. This is clearly a violation of the False Claims Act, 31 U.S.C. § 3730 and can and should be prosecuted by the U.S. DOJ. Our agencies attached the letters from the legislators, failed state audits, failed federal audits and letters from U.S. HHS/OIG/DOJ to our letter to you on February 9, 2001 and need not be duplicated in this correspondence. California has been failing audits by the federal government and its own auditors office for at least ten years showing that they are committing fraud upon the U. S. Taxpayers for billions of dollars a year while those responsible for oversight looking the other way. The motivation for California and its counties is clear, MONEY.

Our agencies have received a response letter from the Department of Health & Human Services (HHS) dated March 16, 2001, written by Thomas D. Roslewicz the Deputy Inspector General for Audit Services, also attached. His letter is in response to our agencies letter to President Bush dated February 7, 2001, also attached. Our letter details how the State of California is defrauding the federal taxpayers for billions of dollars per year by falsely claiming federal dollars for Family and Children Services. Mr. Roslewicz indicated that California in large part failed in the December 22, 2000, Federal Audit to meet state plan requirements, but still has been allowed to keep the falsely claimed federal funding, which they are liable under the False Claim Act. This letter fails to mention that California failed the February 10, 1999, Federal Audit, the March 16, 1994, Federal Audit, the May 2000 California State Audit, the January 1998 California State Audit, and many others dating back into the 80's (these were attached to our original letter and were attached to the original letter sent to DOJ). This is also not inclusive of numerous failed investigations by local Grand Juries, as the San Diego County, Santa Clara County, Sacramento County, Contra Costa County Grand Jury Reports confirm. Mr. Roslewicz suggests that the California Department of Social Services has indicated corrective actions that addressed each of the findings noted in the latest federal audit. If California still gets federal funding and has not corrected the fraud since the 80's, what is the incentive to fix the problem that results in harming children and families every day? DOJ can stop this and save Families and Children from further harm.

If United States Citizens were to commit federal fraud for a few dollars, they would be prosecuted. Why then are the federal agencies allowing California and their political subdivisions to commit federal fraud on a continuing basis? Congress recently took the ability of DHHS to fine states for violations of federal social services programs away from DHHS, because they were not penalizing State Agencies and their political subdivisions to compel them to stop harming children and families, which has continued without any repercussions to the criminal(s), as in this case of the State of California Agencies. Mr. Roslewicz states that it is "premature to initiate another review without giving the State an opportunity to fully implement their corrective actions statewide" and that "any consideration of a follow-up audit would not be made until sometime in the future after factoring in availability of resources and other priority audit work". Isn't it true that our children and families should be our highest priority and that the abuses of California should have put this issue as their highest priority? Please read the Time Magazine Article, dated November 13, 2000, Vol. 156, No. 20 on the abuses in the foster care system, which places California in the list of the top three (3) abusers of children by the State.

The fraud of the United States Taxpayers makes this an issue for the Department of Justice under Mr. Ashcroft and not DHHS. The billions saved from recovery of monies from California would more than pay for the DOJ investigations, of California 31 U.S.C. § 3730.

Justices Ginsberg and Breyer noted in a concurring opinion that the presumption against including states in the definition of "person" has not been applied when the United States is the plaintiff (opinion May 22, 2000) States and state agencies are subject to False Claims Act liability when the government institutes the action or when the government intervenes in a relator's qui tam action. Therefore, states or state agencies that defraud the federal government still face a risk of False Claims Act liability.

The state and its agents the counties are flagrantly violating the State Plan approved by the federal government (DHHS) to fraudulently obtain billions of dollars annually from the federal government and its taxpayers. Claimant's have been denied due process rights guaranteed by 45 CFR 205.10 and the U.S. Supreme Court decisions in Goldberg vs. Kelly (1970) 397 U.S. 254; Jackson vs. Department of Public Welfare of Florida (1970) 397 U.S. 589. The Supreme Court in their decision stated that 45 CFR 205.10 & Title 22, Division 22 CCR part of this State's Plan is mandated upon the State and a Superior Court of a State has no jurisdiction to countermand that order. The doctrine of staire decisis and supremacy law must apply. The fact that in 1992, the United States Supreme Court in Suter vs. Artist, M. 503 U.S. 347, the Court held in an opinion delivered by Chief Justice Rehnquist that "requisite features of state plan ... in order for a state to be eligible for payments under this part it shall have a plan approved by the secretary ... provides that the plan shall be in effect in all political subdivisions of the state, and, if administered by them, be mandatory upon them and their political subdivisions," Thus Title 22, California Code of Regulations, Divisions 1 through 89 are California's own submitted State Plan in this Instant matter, Division(s) 6 et seq. (Foster Care), Division 21 et seq. (Civil Rights), Division 22 et seq. State Hearings, Division 31 et seq. Child Welfare Services, if approval DHHS is a requisite and it be mandatory upon this State and it's political subdivisions. Then compliance enforcement of these requisites of the State plan falls under various and concurrent federal jurisdictions as:

1. Federal False Claims Act= USDOJ, pursuant to the aforementioned Act.
2. 18 U.S.C. 1031, Criminal Frauds Act=USDOJ
3. Civil Rights Act of 1964, 42 U.S.C. 2000d (as an example of this act)=USDOJ (State Courts, Government Agencies and private contractors receiving federal funding) or DHHS (CDSS, County Agencies and private contractors receiving DHHS funding).
4. Criminal acts against United States Citizens pursuant to 18 U.S.C. 241 & 242=USDOJ.
5. Federal Program Plan Funding compliance in regards to Child Welfare Services and Foster Care DHHS/ACF pursuant to 45 CFR Parts 1340 et seq. Criminal or any other Court enforcement USDOJ.
6. The negligent deaths of a child while in Foster Placement that were covered up by local Agencies and Local Courts=USDOJ pursuant to 18 U.S.C. 241 or 242.
7. Local Courts who manipulate Juvenile Court Proceedings and fail to follow the prescribed laws and ignore the Constitution and then alter the Reporters Transcripts and omit documents in the Clerks Transcripts on the parents appeal, all criminal acts pursuant to 18 U.S.C. 241 or 242 in regards to 42 U.S.C. 5106a (b)(A)(V)(xi)(II) which as part of the State Plan that Congress has required that States provide a mechanism for parents to appeal and once given this expectation parents must be afforded DUE PROCESS not altered and omitted records. Our clients have the one and only set of altered records of which the California Court of Appeals, Third District has just dismissed this case, You may ask why? We also did, and the answer is cover up the miscarriage of justice so it hopefully will disappear. All of this because people do not have rights in a system full of money with absolutely no over sight. This is why California, as well as other States, consistently fail, Federal, State and local Grand jury audits and investigations. Where would the incentive be to follow the laws if you are not compelled by force? Would a criminal willingly go to jail or prison without DOJ prosecution?

There are only two motivations for California's actions, as well as CDSS - if you have no over sight, then billions of federal dollars can pour through the State into these counties, as well as others, without proper checks and balances and as in this matter, there is strong suspicions that the minors being detained should have been returned to the care and control of the Claimant's; but without proper procedural safeguards mandated through state plan requirements, this cannot occur. This arises a serious question of violations of 18 USC 1031, because the basic requirements of the plan See 42 USC 5101, et seq. Title IV B & E which requires that the sole purpose of the act is to protect children, then to reunify families, but because of the financial incentives brought forth by such statutes as 42 USC 673 B, which has been recognized by the U.S. Ninth Circuit on August 26, 1999, in Calabretta vs. Floyd. The Ninth Circuit warned Congress that such incentives would create serious problems for the purpose of financial gain. These problems appear more and more prevalent and these cases are a classic example of the problem, but because Claimant's cannot bring forth these issues to the mandated jurisdictions, they can be covered up, because the Superior Court and CDSS does not want to hear the truth. Please help the families and children and stop California from committing fraud on the taxpayers. We respectfully request that the DOJ take the appropriate actions to stop the fraud committed by California and its agents and/or political subdivisions. One such remedy or action, which can be taken by the DOJ, is the False Claims Act. Children and families are being hurt daily and DOJ does have jurisdiction in this matter, as all lower remedies have been exhausted on many issues.

Sincerely,

Charlie Wittman
Director AFCAF

Junior Maning
Director CFAC

Cc: Karen A. Morrissette, Deputy Chief, Fraud Section, DOJ
Senator Boxer
Senator Feinstein
HHS/OIG
Claimants

Enc: "A Call For Change" by Joseph Sarandos