Ex-state
worker indicted in
welfare scam

One of the charges also names
her father, a local church pastor

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By Debra Barayuga
Star-Bulletin

AN OAHU GRAND JURY has indicted a former state Department of Human Services employee who allegedly stole about $112,000 in public assistance benefits by withdrawing money using electronic benefits transfer cards from closed accounts.

Germaine K. Kam, 36, of Pearl City, was charged yesterday with one count of first-degree theft for fraudulently obtaining financial assistance, food stamps, and medical and childcare assistance benefits in excess of $20,000.

In another count of first-degree theft, she and her parents -- Ernest A. F. Kam, Jr., 61, and Charlmagne L. Kam, 58 -- were accused of obtaining more than $59,000 in public assistance benefits they were not entitled to between Feb. 1, 1997 and Nov. 30, 1999.

Michael Green, attorney for Germaine Kam, said the investigation against his client was thorough and has been going on for over a year.

"They're obviously very serious -- the charges," he said.

He said the prosecutors apparently focused on wrongful activity that could be proven.

Green said he expects to meet with state attorneys and make a decision that would be in the best interest of his client.

According to state attorneys, the fraud allegedly occurred between July 1, 1998 and July 31, 1999 when Germaine Kam, an income maintenance worker, handled the closing of four accounts involving 21 welfare recipients.

Kam allegedly kept the accounts open but changed the address on the accounts to fictitious post office boxes.

WHEN THE MONTHLY status updates sent to the recipients were returned to the department as undeliverable, the letters were routed to Kam who took her knowledge of the system and allegedly "beefed up" the number of dependents -- increasing the amount of benefits the recipient was eligible for -- said Deputy Attorney General Rick Damerville.

Kam was captured on videotape withdrawing money from automated teller machines using the electronic benefits transfer cards from the accounts that were supposed to be closed, he said.

The parents allegedly applied for public assistance and received food stamps and medical and child assistance benefits when they reported that they were caring for their daughter's two children and failed to report their daughter was living with them.

The parents also failed to disclose more than $30,000 in assets, which would have made them ineligible for public assistance, Damerville said.

Had Germaine Kam disclosed the $112,000 in benefits received, she would not have qualified for child care assistance.

Rather than seeking bail, the state has asked that the Kams be placed on supervised release because they have no criminal records and are unlikely to flee.

Ernest A.F. Kam is pastor of His Name is Jesus Tabernacle. He and his wife could not be reached for comment.

First-degree theft carries a penalty of 10 years imprisonment and a $25,000 fine or two times the monetary gain, meaning the Kams could be fined $224,000 and $118,000 respectively on each theft count.