Woman admits
fund fraud

A 33-year-old Mililani woman has admitted to embezzling about $93,000 in state and federal funds that were intended to help defray child care costs for clients of the state Department of Human Services undergoing job training or working to get off public assistance.

Tracy Rodrigues pleaded guilty on Monday before U.S. Magistrate Kevin Chang to bank and wire fraud and theft from a state program that receives federal funds.

Rodrigues was a former case manager at Maximus, a private company contracted by the Department of Human Services to help unemployed clients get job training and become employed through the "First to Work" program, according to court documents.

Not only was she responsible for assisting unemployed clients obtain training or employment, she also administered, verified that clients were eligible and disbursed monthly child care benefit payments to clients, the documents said.

She was entrusted with "considerable discretion" to generate monthly child care benefit payments using the department's computer system through terminals at Maximus' office, the documents said. Child care payments were typically $250 per child per month.

Under a plea agreement, Rodrigues admitted that between April 2001 and July 2002, she obtained checks payable to clients, forged their signatures and deposited them into her personal account. Documents filed in U.S. District Court list 250 occasions on which she deposited about $59,830 in amounts ranging from $194 to $375.

After June 2002, the department switched to electronic benefits transfer or EBT cards, so Rodrigues' activities moved from bank fraud to wire fraud, according to the documents.

Through different methods, including using the client's EBT cards and PIN numbers to withdraw money from these accounts, she obtained excess amounts totaling $33,239 for her own use between June 2002 and April 2003, prosecutors said.

Assistant U.S. Attorney Tracy Hino told the court that Rodrigues has agreed to cooperate in the investigation by providing information about Department of Human Services beneficiaries abusing the First to Work program.

Defense attorney Keith Shigetomi said Rodrigues spared the government the expense of going through the formal charging process by waiving indictment.

"We worked out everything before going to court, and this was something she wanted to do -- accept responsibility and take the consequence," Shigetomi said.

The funds were meant for clients with children to pay for child care and Rodrigues' activities meant less money for those truly entitled to it, said Adam Lee, investigator for the state Department of Human Services, who was assisted in the investigation by the U.S. Department of Health and Human Services and the FBI.

Maximus cooperated with the investigation, but the state did not renew its contract, Lee said.

Rodrigues faces a maximum of 30 years each on the bank and wire fraud and 10 years on the theft charge when sentenced Aug. 1, 2005.