Tuesday, February 21, 2012
Welfare money used to gamble
Tens of thousands of New York welfare dollars have been accessed from ATMs in liquor stores, strip clubs and even Atlantic City casinos, an I-team investigation has found.
The I-team sifted through records of more than 7 million ATM withdrawals in which money was obtained using an Electronic Benefits Transfer card or EBT card.
The cards have essentially replaced traditional food stamps and are supposed to be used by New York's neediest for basic necessities like groceries and diapers.
EBT cards can also be used to access designated amounts of cash via ATM.
The I-team found more than $95,000 withdrawn in Atlantic City over nearly two years, much of it in casinos like the Trump Taj Mahal, Caesar's Palace and The Borgata.
Aside from casinos, the I-team found thousands of dollars withdrawn from ATMs at addresses tied to liquor stores and strip clubs. The most popular strip club for food stamp withdrawals was a gentleman’s club call "Perfection" in Woodside, Queens where welfare recipients hit the ATM 15 times totaling more than $1,000.