HARRISBURG, PENNSYLVANIA — Agents from the Attorney General’s Public Corruption Unit have arrested a former employee from a Pennsylvania Department of Public Welfare (DPW) office in Philadelphia who is accused of orchestrating a scheme to steal more than $330,000 in public assistance payments.
Attorney General Linda Kelly identified the defendant as Kyshima D. Montgomery, 23, of 2934 North Judson St., Philadelphia.
Kelly said that evidence and testimony concerning the theft of state welfare benefits was presented to a statewide investigating grand jury, which recommended the charges that were filed today. Kelly also noted this is an active and ongoing investigation and additional arrests are anticipated.
“This is a disturbing scheme to corrupt the public assistance system for personal gain by diverting massive amounts of taxpayer funds from their intended purpose, aiding Pennsylvania residents who are struggling to feed and support their families,” Kelly said.
According to the grand jury, Montgomery used her position as a clerk at the DPW’s Philadelphia County West District Office to place tens-of-thousands of dollars in additional cash benefits into the accounts of numerous friends, associates and other individuals, without proper authorization.
Kelly said that most of the extra payments were in the form of “One Time Issuances,” which are intended to assist recipients with additional expenses, such as job training, books or fees. Montgomery allegedly transferred these additional funds into the Electronic Benefit Transfer (EBT) accounts of the targeted individuals, allowing the money to be withdrawn with an EBT card, which functions much like a bank debit card.
The grand jury found that Montgomery withdrew the majority of the extra funds for her own use before turning the EBT cards over to the other participants in this scheme. Many of the co-conspirators understood they were receiving additional benefits, often improperly – typically several hundred dollars in extra funds – but most were not aware that Montgomery was allegedly using their accounts to funnel thousands of dollars to herself.
Kelly said that between December 2010 and May 2011, Montgomery allegedly made $235,648 in unauthorized payments to various EBT accounts, much of which was withdrawn as cash using various ATM’s and bank branches in Philadelphia.
Additionally, Montgomery is accused of transferring an additional $104,310 to other EBT accounts, but those funds were frozen by the Department of Public Welfare before the money could be withdrawn.
Montgomery is charged with 17 counts of theft by deception, one count of criminal attempted theft by deception, 18 counts of criminal use of a communications facility, 18 counts of unlawful use of a computer and 14 counts of criminal conspiracy, all third-degree felonies which are each punishable by up to seven years in prison and $15,000 fines.
Montgomery is also charged with one count of theft by deception and one count of criminal conspiracy, both first-degree misdemeanors which are each punishable by up to five years in prison and $10,000 fines.
Montgomery will be prosecuted in Philadelphia County Court of Common Pleas by Senior Deputy Attorney General E. Marc Costanzo of the Attorney General’s Criminal Prosecutions Section.
Kelly noted this arrest involving the theft of DPW benefits in Philadelphia comes only weeks after agents from the Attorney General’s Office arrested two former caseworkers from Delaware County who were charged with stealing nearly $300,000 in a similar public assistance fraud scheme.
Kelly thanked the Pennsylvania Department of Public Welfare and Pennsylvania Office of the Inspector General for their cooperation and assistance with these continuing investigations.
(A person charged with a crime is presumed innocent until proven guilty.)