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    Philadelphia Child Care Center Owner Gets Jail, Hefty Restitution Bill for Welfare Fraud, Forgery, Theft and Record Tampering

    May 13, 2016

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    Harrisburg, Pa. – The Office of Inspector General (OIG) announced today that the owner and operator of three Philadelphia child care facilities has been sentenced to 11 ½ to 23 months in county jail, plus 20 years’ probation, and ordered to pay $900,000 in restitution after pleading guilty to forgery, theft by deception, tampering with public records and welfare fraud.

    Hubert T. Hendricks, 52, of Lansdowne, was sentenced in the Court of Common Pleas of Philadelphia County on March 17, following a guilty plea last fall to the charges based on investigations by the OIG and the Pennsylvania State Police.
    Investigators found that Hendricks had illegally received $9.365 million in child care subsidy payments from the state  for “numerous fraudulent billings including double billings, billings for children who did not attend the facility or who were not in attendance on the dates alleged,” according to the affidavit of probable cause.
    Records also showed that Hendricks lied on applications to operate Rising Stars Childcare and Learning Center – at two locations on Woodland Avenue and one location on Reed Street – when he said he had never been convicted of a felony.  Individuals who work in child care centers must submit a criminal history clearance. Hendricks altered state police and FBI criminal background checks to hide his prior convictions in Virginia for obtaining money falsely (1991) and forgery and failure to return rented goods (1993) and in Federal court for conspiracy to distribute narcotics (1993). Department of Human Services (DHS) regulations authorize the Office of Child Development and Early Learning (OCDEL) to disapprove child care center licenses if the applicant has been convicted of certain crimes. These regulations are in place to safeguard children enrolled in child care centers. 
    Upon discovery of Hendricks’ criminal history, OCDEL regulators disapproved his child care center licenses, which were up for renewal.  If Hendricks’ criminal history had been known when he first applied for a license, he may have been found ineligible to operate a child care center in Pennsylvania and to receive subsidized child care payments from the state.
    “The OIG does not tolerate acts of misrepresentation, such as those committed by Mr. Hendricks, that defraud public assistance programs.  Each year this office recovers millions of dollars from criminals who abuse the system and cheat taxpayers,” Inspector General Grayling G. Williams said.  “Our investigations protect the integrity of public assistance programs so benefits are there for truly needy Pennsylvanians.”
     
    The OIG’s Bureau of Fraud Prevention and Prosecution is responsible for investigating welfare fraud and conducting collection activities for programs administered by, or contracted through, DHS.  The OIG works with DHS’ county assistance offices to identify suspected cases of public assistance fraud and with local district attorneys to bring the cases to prosecution. 
     
    The OIG also relies on tips from concerned citizens. To report suspected fraud, call the Welfare Fraud Tipline at 1-800-932-0582 or 1-844-DHS-TIPS.  Callers may remain anonymous. Tips also may be reported online at www.oig.pa.gov, using the “Report Fraud” link.

    MEDIA CONTACT:  Ellen Lyon, 717-787-6835