I-Team: Rhode Island Man Held on Welfare Fraud Charges

ATTLEBORO (CBS) - A Rhode Island man appeared in Attleboro District Court on Tuesday, accused of ripping off Massachusetts taxpayers and illegally collecting welfare benefits while living out of state.

The development comes after an I-Team investigation, which uncovered documents showing Paul Hession had been living in Rhode Island for several years while continuing to collect public assistance in the Commonwealth.

Hession, 45, was held on $15,000 cash bail or $150,000 surety after the judge revealed a lengthy criminal background that included previous larceny and drug-related charges. Prosecutors also said Hession had a history of violating the terms of his probation.

Hession faces charges for larceny, public assistance fraud, and making a false statement to get medical assistance.

It's alleged he collected almost $54,000 in taxpayer-funded benefits from MassHealth and the Department of Transitional Assistance (DTA) over a three-year period.

Attleboro resident Stephen Gainer started receiving mail addressed to Hession in November 2014. Gainer had owned the home for seven years.

Despite several calls to the Fraud Hotline, Gainer claimed the suspicious mail kept showing up at his house. That is when Gainer decided to contact the I-Team.

"It's not a victimless crime," Gainer, who attended the court proceeding, told the I-Team on Tuesday. "There are consequences. You are not just stealing from the government. You're stealing from us. You're stealing from people who need it."

Rep. Shaunna O'Connell, a Taunton Republican, has focused her legislative efforts on cutting down on welfare fraud. She described recent reforms as "window dressing" that don't go far enough to prevent the problem.

"It's very concerning to me and taxpayers," she said. "The language that we have passed has been a bit sloppy in the past and created these loopholes and allowed people to get away with these things."

After the I-Team story, the case was referred to the Bureau of Special Investigations (BSI) in the Office of the State Auditor.

Last year, the investigative unit identified $13.7 million in public benefits fraud, according to an annual report.

Currently, investigators search for multiple out-of-state transactions to find potential welfare fraud. However, Auditor Suzanne Bump is proposing a bill that would give the BSI subpoena power.

"Without the authority to issue our own subpoenas, the investigation process is slowed down, and in some cases investigations cannot be completed," an auditor's spokesman told the I-Team.

In a statement, a DTA spokesman said the department monitors all spending both in and out of state to ensure benefits are being properly utilized. If evidence suggests a recipient has moved out of state, DTA will move to close the case for no longer being a Massachusetts resident, the statement said.

But Gainer said it's still confusing how Hession could use his Attleboro address to allegedly collect benefits. Regardless, he is satisfied he remained persistent in reporting his suspicions.

"It is gratifying to see the outcome," Gainer said. "I'm a little proud of it. I helped catch a bad guy."

Ryan Kath can be reached at rkath@cbs.com. You can follow him on Twitter or connect on Facebook.