In 1989, Paul Adams, then the Inspector General at the Housing and Urban Development Department, was hauled before a House subcommittee to explain why no one on Capitol Hill was aware of the rampant waste, abuse and mismanagement in the department's programs. The HUD scandal had drawn widespread media attention and proved to be a major embarrassment for both the executive and legislative branches. Many of the abuses, Adams told panel members, were thoroughly detailed in reports issued by his office that went unread in Congress. Not good enough, he was told. Busy legislators and their staffers don't have time to pore over every detail of IG reports, committee members said. They need federal officials to shout from the rooftops when they uncover evidence of poor performance and malfeasance - or at least to pick up the phone. It was a message Adams and other executive branch officials would hear repeatedly as senators and representatives sought to explain to their constituents why the HUD scandal was allowed to fester for so long. The obvious answer is if you intend to commit genocide for profit be sure to have the political patronage system take out law enforcement first. This document published May 8,2006 is located at This Website

This Policy Highlighter from the Evergreen Foundation reviews an audit of Washington DSHS welfare programs which disallowed $6.1 Billion in medicade payments to Washington State because of frauds, hoaxes, shams, and various criminal activities. As the report states Washington State Auditors were subjected to threats and harassment by DSHS officials

Policy Highlighter
Volume 15, Number 1
January 11, 2005
Published By Evergreen Foundation
PO Box 552
Olympia, WA 98507,
Telephone: 360-956-3482

DSHS fails $6.1 billion Medicaid audit Will legislature finally exercise oversight?

On December 30, 2004, Washington State Auditor Brian Sonntag officially released the Fiscal Year 2004 audit of the state's $6.1 billion (50 percent federal funds) annual Medicaid program. Among the 22 audit findings issued against the Department of Social and Health Services (DSHS) for its handling of the Medicaid program, the state auditor (SAO) took the highly unusual step of "disclaiming"; the entire Medicaid program.

SAO noted:"Disclaim" is a term used in auditing standards that means we cannot conclude, based on documentation and other evidence we were provided, whether all of these costs were allowable or whether all clients were eligible for services given to them and all providers were eligible for payments made to them."

SAO's official Medicaid audit release follows the unprecedented public release of the audit's draft findings by DSHS on the agency's website on December 14, 2004. According to SAO, some of these draft findings were altered by DSHS.

The findings the Department of Social and Health Services released on its website on December 14, 2004, were preliminary drafts and were not completed. In addition, some of the findings the Department presented were worded differently from the drafts we gave the Department at the exit conference on November 24, 2004. The following document is the State Auditor's Office official special report on our audit of the Medicaid Program for fiscal year 2004.

Among the audit's official findings, DSHS:

paid $22 million to individuals who did not provide valid Social Security Numbers (SSN) or offered no SSN at all;

paid more than $1 million to individuals claiming a deceased relative's SSN;

provided $1.3 million in unallowable medical services to illegal aliens;

cannot account for more than 1.4 million in pills worth in excess of $529,000; and

did not cooperate with SAO's audit, leading to the disclaiming of the $6.1 billion Medicaid program.

Regarding the lack of cooperation extended by DSHS, SAO made the following statements throughout its audit:

DSHS personnel attempted to thwart particular audit procedures by questioning our authority to either expand the scope of our audit or to obtain certain information.

[DSHS]altered information related to sample transactions while we were attempting to complete our review.

In some instances, we were unable to independently interview line staff without the presence of management or without management's selection of the employees to be interviewed. Staff members informed us that they had to obtain permission from management prior to speaking with auditors. During our review of the allowability of certain medical procedures and of procedures provided to undocumented aliens, we were never granted permission to speak with the medical consultants who had approval authority.

The audit liaison system, as actually used by the Department, hindered our access to data and obstructed our contact with line staff. Additionally, the audit liaison system attempted to force us to rely on the Department's representations as to the existence or accuracy of evidence. In effect, the Department was attempting to perform the work of the auditor, instead of allowing the auditors to perform an independent audit and reach a valid conclusion.

It is inappropriate for the Department to withhold information because it believes it is not relevant or significant. The auditor should be given the information requested and have an opportunity to examine it and discuss it with the Department before the auditor decides its importance.

Auditors of the Medicaid Program were subjected to undue criticism of their integrity, independence, competence, objectivity, and knowledge. These charges against audit staff were made both in person and through e-mail, and we believe they were intended to deter us from completing our audit.
It is worth noting the contrasting attitude displayed by the Department of Health (DOH) in response to one audit finding issued jointly against DOH and DSHS: "We concur with the finding of the State Auditor's Office Thank you for the professional work by your staff." Despite DOH's acceptance of the audit finding, DSHS did not concur with the finding. With Washington's $6.1 billion Medicaid program at risk, legislators must finally exercise long overdue oversight and ensure audit corrective action occurs. Many of the findings issued against DSHS in SAO's 2004 audit are repeats from previous years. By making an example out of DSHS, legislators would also send a strong message to other state agencies that frustrating the efforts of the people's elected auditor will not be tolerated. Accountability and transparency for tax dollars must be the first responsibility of all state officials.

Prepared by: Jason Mercier
Budget Research Analyst
360.956.3482
Evergreen Freedom Foundation
P.O. Box 552, Olympia, WA 98507
(360) 956-3482,
Fax: (360) 352-1874
effwa@effwa.org

It is believed organized crime interestcontrolled many aspects of HUD programs at least through the 1990's. Homeless Advoates form a special threat to the behind scenes special interest and patronage groups because they were outside the line of flow of money or direct political control:

1. Mitch Snyder-National Homeless Coalition National leader for the homeless who reportedly hanged himself (no witnesses) at a time when large amounts of information were being leaked to Congress which became part of US Senate Report 102-2 CRS Compilation for High School National Debate Creative Center for NonViolence shelters 1350 persons at 425 Mitch Snyder Place, NW, Washington, DC 20001 Contact: ccnv@erols.com

2. Michael Stoops-National Homeless CoalitionAccused by members of Portland Central Eastside Industrial Council as having given 8 children VD of throat in Portland, Oregon before being sent to DC to run the Country. Is Michael Stoops guilty or simply victim of a character assassination?

3. Pastor Parrot Salem Church of Nazareen Was asked by Portland area interest to have his church investigate homeless conditions in and around downtown shelters. His reports delivered on tape are very critical of shelters and Pastor Parrot is relieved of his position in the church and moved to Idaho. First Church Of The Nazarene Salem 1550 Market Ne 1550 Market Ne SALEM OR 97301-1367 (503) 581-3680

4. Salvation Army Truckreportedly tried to run over police detectives car in 1998 in Birmingham, Alabama. The Detective was placed on suspension after arresting the Salvation Army Commander who retired. It was later determined that a parolee was suspected of driving the truck and responsible for the attempt on what he thought was the person who sent him to jail.

5. Threats Against Christian Center of Salem Salvation Army Lt. Col Morelocks called Janet Hernandez of Salem Housing Authority to locate homeless. When located sleeping in church bus the Church is asked to run him out of town. About a year later the Church states they were told to run man out of town who is staying at Church Shelters for opposing drug dealing at Portland shelter or face consequences as relayed by Pastor Kelland Lowry Pastor Lowry and Royal Mall Representing themselves to be a not yet existant "nonprofit agency" secured a shipment of blankets and other items from US Army depot at Tracy, California

6. Victim BJ Turner Director Modesto Battered Womens SheltersBJ Turner created too much public controversey of homeless condition in Modesto, California in the late 1980's and was fired without notice of explanation.

7. Victim Christian Center, Salem,Oregon Evengelist Kelland Lowry reports that a Col Morelock of Salvation Army has contacted the HUD Rep Janet Hernandez for City of Salem and find out where I am sleeping and run me out of town. This church was again threatened later and I had to leave their small shelter.

8. Victim Mike Kiffin Salem, Oregon 1993Mike Kiffin is simply a casual associate of mine who the Union Gospel of Salem, Oregon has decided to deny services too including programs paid for by the US Government. Denying a client access to food and shelter during a winter storm is likely to result in death or injury.

9. Victim Kinko Copies Ausugt, 1995With in a few hours of telling state EMA offical Chip Patterson that a copy of emergency management publication is at Kinko copies a virus infects all the machines which is quite a feat considering what type of antivirus software they have.

10. Victim Chris Walters Medford, Oregon December 9, 1993 Federal Grand Jury & DEAOctober ,1993 Newspaper reports Federal Grand Jury and DEA conducted extensive raids in Portland to close down drug dealing... Salvation Army Medford, OR: states I cannot stay here anymore because they apparently believe I was involved in closure of drug dealing in Portland. Sorry guys but that was the DEA. The Salvation Army operations are funded through FEMA which pays for shelter and food for needy person. Employee James Frisson states I am being denied services for allegedly publishing information about the Mafia and ties to HUD programs. The USDA poster on Salvation Army property plainly states you cannot deny a client access to services based on race, religion, politics....... November 17-18,1993

11. Victim Pastor Steward Tucson, CA Pastor Stewart of Desertview Church of God throws away my mail after he receives threatening phone calls according to friend Don Martin.

Seattle Bob Wilmont was responsible for publishing homeless death reports each year in Seattle during the 1990's. His facilities were bombed several times and had to move his operations several times and finally was shot to death by a client while reportedly threatening them with an empty rifle.

Can you run Chris Walters out of town?This is Senator Mark Hatfield's office we understand Chris Walters is currently in Modesto, CA and wanted to know if the United Way could help us run him off? Answer: "He just happens to be sitting right here in my office you can ask him yourself". Yes Senator: Eloise Booker of your staff suggested you might have molested her son Mark or other children and I mailed that for you all over Oregon-enjoy your retirement.

It is May, 2005 and a guest of the Samaritan Ministries is sitting on the bench outside the dining room after eating dinner and waiting to check in when another man approaches for no apparent reason and proceeds to stab him several times. While Shelter operator Steve Stover provides first aid to the victim the would be killer strolls calmly up a 1500 foot hill on a sunny afternoon to a waiting van. Nothing in the killer's action suggest any fear of the police or apprehension in this well planned attack. When apprehended the toe tag should read "Terrorist Executed By the US Department of Homeland Security Cite Title 50 USC...

Death ThreatConvicted felon Ma Cutris threatens to have Mark Zusman Editor or Willamette Weekly In Portland assassinated for opposition to Baloney Joe's Shelter during a HUD housing conference in Salem, Oregon for his role in court ruling in Portland.

It is Janurary 2006 and Reverend Alan Hartman is explaining that God was unhappy with something he did and his biggest sponsor for Texas Arms of Love quit and he was going to have to do the unthinkable and get a job. Just when bad news gets worse Alan went on to explain that someone had burned down Pastor Boyd Bien's House with his family in an apparent attempt to kill him and his entire family. It sounds like God was very unhappy over something the church did. All this seemed to happen when Alan's Church got involved in a million dollar homeless survey by City of San Antonio, Texas which was 40 pages long, with typos; hand written notes....and other things.

It seems that many Chairman of Congress believe in the concept of work ethic and if they find you on Capitol Hill or too close to something they are working on will actually have someone volunteered or simply drafted. I-5 Cooridor Agreement origionally on covered portions of California, Oregon, and Washington but was rapidly expanded by the national leadership to include a third of the United States. Congressman Henry B Gonzalez caught me on Capitol Hill about 1988 circulating one of my publications and had me introduced to the HUD Inspector General.. This assignment lasted until about 1993 when the Clinton Administration came into power and replaced me with 2 convicted persons who according to press reports were paid $80,000 a year plus expenses..

Exhibit Page NACertificate of Service On Congress extensive recommendations for Congressional Supercedes