San Francisco city worker, partner accused of $500K welfare scam
A San Francisco city employee and her partner are facing multiple charges for allegedly defrauding public agencies out of $500,000 in welfare, including Section 8 housing and childcare benefits, prosecutors said.
San Francisco District Attorney Brooke Jenkins announced that 49-year-old Maggie Pasigan and 47-year-old Daisy Avalos were arraigned Thursday on charges of grand theft, welfare fraud, money laundering and conspiracy. Both Pasigan and Avalos pleaded not guilty.
In a statement, Jenkins thanked multiple agencies, including the U.S. Department of Housing and Urban Development, the city's Human Services Agency and Housing Authority, along with local law enforcement, in helping with the two-year investigation.
"My office will take action to ensure the integrity of our benefits systems and seek to hold those accountable who would defraud the system for their own personal gain," Jenkins said.
Court records show the city's Human Services Agency began investigating Pasigan in 2023 for alleged fraud, saying she did not disclose that Avalos was her domestic partner and Avalos' income as a city employee. The income would have disqualified their household for public benefits.
"The defendants' fraudulent actions diverted over $375,000 in taxpayer funds from multiple federal programs, including HUD-assisted housing programs designed to provide safe and affordable housing for low-income families," said Special Agent-In-Charge Robert Lawler of the HUD Office of Inspector General.
In addition to the housing benefits, Pasigan and Avalos are accused of receiving more than $30,000 a month in childcare benefits from a nonprofit contractor that stewarded public dollars for childcare and early education.
Investigators said the women claimed to have provided childcare to as many as 17 children. Surveillance over several months showed there was no evidence of drop-offs, pickups or any other signs of children under their care.
Prosecutors said the pair's next court appearance is Apr. 22, to set a date for the preliminary hearing.
Anyone who may have a report of welfare fraud is asked to contact the San Francisco Human Services Agency hotline at (415) 557-5771.
