Although theJournal Sentinel has highlighted ahandful of cases of allegedly fraudulent day care providers, one stood out fromthe others: Menomonee Falls resident Latasha Jackson, who ran the Kiddie SpringsChild DevelopmentCenter in Milwaukee.
As recentlyas last week, Journal Sentinelreporter Raquel Rutledge wrote that Jackson had “reaped nearly $3 million fromthe taxpayer-financed programand bought a Jaguar convertible and built themansion with an indoor swimming pool and outdoor basketball courtwhile, for 10years, regulators ignored red flags indicating she was scamming the system.”
Thanks toRutledge’s reporting Jacksonbecame the personification of fraud in Wisconsin Shares. Jackson has been condemned in Journal Sentinel editorials, by the headof the Department of Children and Families (DCF), and on right-wing talk radio.Her alleged misdeeds were the focus of anger for reactionary legislators whorushed to crack down on the program through highly punitive and sometimesunfair new regulations. Jacksonlost her license and her livelihood, as well as her home in a Dec. 27, 2009,firea “suspicious” fire, authorities say.
FraudAllegations Not Substantiated
But were theoften-repeated allegations true?
Did LatashaJackson “scam” the taxpayer-funded Wisconsin Shares program?
According toan administrative law judge who heard Jackson’sappeal, the state has not been able to prove those allegations.
On Jan. 22,Administrative Law Judge Brian C. Schneider ruled in a proposed decision that Jackson’s day carelicense should not have been revoked.
DCF hadargued that Jacksonshould not have a day care license because she had agreed to suspend herFoodShare benefits for one year.%uFFFD
ButSchneider found that the consent agreement Jackson signed did not include an admissionthat she had done anything wrong.
“I concludethat the [license] revocation was erroneous,” Judge Schneider wrote.
In addition,Schneider disagreed with DCF’s allegation that Jackson received an eye-popping $439,703.99in improper payments. Instead, Schneider found that the real number is morelike $400, representing an overpayment for one child for three weeks inFebruary 2009.
“Given thesize of the day care center, I cannot conclude that erroneously billing forthree weeks for a child mandates revocation of the license,” Judge Schneiderwrote.
DCF allegedthat Jackson’sattendance sheets don’t show any parental signatures, and therefore were notvalid.
ButSchneider wrote that “there is no legal or policy requirement anywhere thatparents sign the children in and out, or that the parents sign the completedattendance sheets.”
DCF arguedthat there were discrepancies between the hours on Jackson’s attendance sheets and the hoursbilled.
Schneidermade note of that, but determined that “the difference is irrelevant.” That’sbecause the state pays providers in one of two ways: on an attendance basis,which only compensates providers for the hours for which the child receivedcare; and on an enrollment basis, a flat fee for a set number of hours perweek, as long as the child attends at least one hour per week.
The childrenwere all at Jackson’scenter on an enrollment basis. Therefore, Schneider found, it didn’t matter ifthere were a few discrepancies between the hours a child attended her centerand the hours billed. The billable hours would have been the same, a flat fee,as long as the child had shown up that week.
‘AFair Decision,’ Jackson’sAttorney Says
Jackson’sattorney Rodney Cubbie said he was pleased that, given the widespread publicityof the case, the decision seemed to be free of political pressure to find Jackson guilty of somekind of fraud.
“I was verypleased that it was a fair decision,” Cubbie told the Shepherd.
JudgeSchneider’s decision is proposed, only, and not final. Jackson and DCF areallowed to comment on it no later than Feb. 5. Then it goes to DCF SecretaryReggie Bicha or his designee for a final decision. Jackson may appeal it in circuit court.
However,Cubbie said that he does not want Bicha to be involved in resolving Jackson’s case, since Bicha has made negative publiccomments about Jackson.
For example,in a widely published op-ed (available on DCF’s own Web site) Bicha wrote: “Too often the Wisconsin Shares program has been scammed by providerslike Latasha Jackson who cheat Wisconsin taxpayers and give hard-workingparents and child care providers a bad nameand we will not accept it.”%uFFFD
Cubbiedoesn’t think Bicha can treat Jacksonfairly.
“This guyBicha has absolutely no businesszerobeing involved in anything reviewing adecision about Latasha Jackson,” Cubbie said. “If I have to, I’ll wind up incircuit court making that argument and trying to get some kind of injunction.”
TheCriminal Investigation Continues
DCFspokeswoman Erika Monroe-Kanedid not want to comment on Jackson’scase.
“As this case is still pending, we cannot comment onthe specifics,” Monroe-Kane said. “However, we do not tolerate fraud and arecommitted to eliminating fraud in Wisconsin Shares. DCF continues to workaggressively to hold accountable those scamming Wisconsin's taxpayers.”
Although Jackson seems to havebeen cleared by Schneider, she still is the subject of a criminalinvestigation. No charges have been filed, however.
According tothe results of a search warrant filed in federal court, investigators havesearched Jackson’sday care facility and interviewed former employees and parents of children whowere enrolled at the center. The witnesses claim that Jackson overbilled for the children in hercare.
AttorneyCubbie said he encouraged Jackson’sformer employees to speak to investigators and tell them the truth, even thoughthey’d complained that they were being intimidated by the investigators.
“We’ll seehow well [the affidavit] holds up if it ever reaches the point where it has tobe subject to cross-examination,” Cubbie said.
