Senior Shield? More Like “Senior Scam”
The South Carolina government office established to protect senior citizens from scams may itself be at the heart of one, according to an explosive report published in yesterday’s (Charleston, S.C.) Post and Courier.
The Lieutenant Governor’s Office on Aging - which earned universal praise under its former director Curtis Loftis - has quickly landed into a major scandal under the “leadership” of its new boss, former Secretary of State Jim Miles.
Earlier this year, we pointed out that Miles was “already turning the agency into a status quo home for political hacks … kind of like him,” but we had no idea he would be this obvious about his shady dealings.
According to the Post and Courier’s report, Miles set up a company called “Senior Shield LLC” earlier this year and promptly received $85,000 in taxpayer dollars to help fund its operations.
And what, pray tell, does the company do?
Well, like some penny-ante version of the indulgences sold by the Catholic Church prior to the Reformation, “Senior Shield” basically sells South Carolina businesses the Office on Aging’s blessing - along with so-called “verification services” which may include publicly-collected data.
Here’s how it works - businesses fork over between $160 and $195 a year to get access to the data as well as a declaration from the Office on Aging that they are “Senior-friendly.”
Talk about a scam.
It’s also pretty obvious from the Post and Courier report that the dim bulbs Lt. Governor André Bauer hired to run this outfit got caught with their pants down …
Since July 29, the Office on Aging has paid $85,142 to Senior Shield, according to financial records obtained from the Comptroller General’s Office through the state Freedom of Information Act.
When first asked about the financial arrangement last week, Adams said the use of state funds was a non-issue because Miles established Senior Shield as a nonprofit organization.
In fact, Miles had registered Senior Shield as a for-profit limited liability corporation, The Post and Courier Watchdog found.
After the newspaper inquired about the discrepancy last week, Miles re-registered Senior Shield as a nonprofit organization with the Secretary of State’s Office.
Miles said Senior Shield was always intended to be a charitable organization but that he mistakenly registered it as a corporation.
Whatever. Of course (as usual) our worthless State Ethics Commission sees absolutely nothing wrong with any of this behavior.
Anyway, Jim Miles was - and is - a disgrace to state government, and the fact that Bauer hired him shows incredibly poor judgment.
Miles is one of those thick-skulled, thick-accented bumpkins who listens to his “Jesus music” real loud going down the highway with Horry County auditor Lois Eargle in the passenger seat making sure everything is on the “up and up.”
Well, provided Jim’s Viagra has kicked in, we’re guessing.
Sure, Miles was South Carolina’s Secretary of State for eight years, but let’s face it, that’s only an accomplishment for people who can alphabetize manila folders.
Seriously, there are West Columbia dental hygienists who could run that office better than the last two bozos we’ve elected to it … which reminds us, we shouldn’t be electing Lt. Governors or Secretaries of State to begin with.
Anyway, props to Ron Menchaca over at the P&C for a great scoop …
Comments
By Aaron Thorne on November 13th, 2008 at 1:29 am
What will come of the funds directed to this sham before Miles got caught with his hand in the cookie jar?
Even as a non-profit, unless business can receive a “seal of approval” without having to pay for it, it’s merely a glorified shake down. No better than a Mobster protection payment, or more meaningful than a paid BBB membership which many shady companies pay for just to say they are a member.
By Gen. Longstreet on November 13th, 2008 at 10:10 am
If he weren’t already a completely non-viable candidate, this would be Andre’s gubernatorial Appomattox. As the old lemon-sucker would say, let us cross over the river and rest under the shade of the trees. Strike the tent, young man.
By Elizabeth on November 13th, 2008 at 11:52 am
You have got to be kidding! Your remarks are the worst case of misinformation, half-truths,( and some are out right lies ) that I have ever seen. You need to stop your personal agenda, and ask the Seniors what they think of this program, and the folks that oversee it. My experience with the Lt. Governors’ programs and his dedication to this population is outstanding. I applaud his and his staff’s efforts to honestly help the Senior population in S.C., and their families. I am not alone in this perspective. As a member of the Senior community, I do talk with many of my peers. There is never a hint of mistrust, or dissatisfaction. Get your facts straight, and report honestly. Stop using false information as if it were all true. Shame on you.
By Out & About: SC on November 13th, 2008 at 12:22 pm
I believe every word of it.
By Frank on November 13th, 2008 at 7:16 pm
Not any surprise here. Obviously, Miles is brought in to politicize the office for Bauer’s gubernatorial run. How do you do that? Take money out of good programs and create one that can be used as a political slush fund and will allow public and donated monies to be used to glorify Andre Bauer (and Jim Miles). Viola — Senior Sham. Simple fact is, once Loftis left the Office, the brief interlude of working for seniors has ended. Andre Bauer doesn’t know what goes on in that Office — he’s only interested in what he can get from the office. Don’t be fooled Elizabeth, what could a program to certify businesses as “Senior Friendly” be for? Is it some kind of protection game? If it were really looking out for the seniors — Why would it cost $85,000.00 to set up? Why would it require “contributions” from the businesses? What is wrong with the better business bureau. Something’s rotten in the Lieutenant Governor’s Office — and it isn’t yesterday’s fish! I bet if someone did some real investigative reporting here, all kind of nuggets could be mined. Beware of Politicians creating “charitable” entities — when their only real charity is themselves.
By Out & About: SC on November 13th, 2008 at 8:45 pm
“some kind of protection game”
Doesn’t the Mob do that kind of stuff? And don’t they call it “business insurance?”
By Frank on November 14th, 2008 at 11:40 am
Also check out the Secretary of State’s website. No charitable registration of this charitable corporation. Senior Shield, LLC was dissolved this month after FOIA’s were made by news outlets to the Lt. Gov’s office. Senior Shield LLC was successor to an entity created by Miles in April. All “FOR PROFIT”.
When is someone going to force production of the check book. It will be interesting to see what Senior Shield paid for and to whom it was paid. It will also be interesting to see what Miles family members are involved. I bet some are.
The fox is minding the henhouse while Andre plays in the yard!
By Art on November 14th, 2008 at 8:29 pm
The Secretary of State’s Public Charities web page, http://www.scsos.com/index.asp?n=43&p=0&s=43, states, for Senior Shield: “No records returned.”
The Charities Division Director, Carolyn Hatcher, told me Thursday (November 13, 2008) that Miles had only “just recently” come by to get the registration form and that IT HAS NOT BEEN RETURNED.
Repeat: Miles has NOT filed it with the Secretary of State’s office.
Furthermore, she said that Miles has “a year in which to submit it.”
A more serious problem faces Miles as he completes IRS form 990, revised in January 2008, now ten pages long, claiming that it is a “private charity formed pursuant to IRC 501(c)(3).”
This is because the IRS may well determine that regulations of the Governmental Accounting Standards Board (GASB) — the federal agency that oversees GOVERNMENTAL nonprofits — dictate that Senior Shield is a GOVERNMENTAL nonprofit akin to the Medical University, The Citadel, Lander College, Clemson University, et cetera.
A three-prong test accepted by GASB includes whether the charity is controlled by an elected governmental official; if Bauer controls it, it will NOT be given 501(c)(3) status.
This resembles another “private nonprofit 501(c)(3)” scam that Glenn McConnell accomplished with state and federal money by incorporating Friends of the Hunley, Inc. McConnell quietly got FOH’s form 990 approved for 501(c)(3) status. In the FOH scam, the registered agent was McConnell’s chief of staff, attorney John Hazzard, who was driving around in a new Porsche Boxter provided — free (including fuel, insurance, maintenance, etc.) — by FOH Chairman and chief fundraiser Warren Lasch.
The legislature plays an active role in these scams by voting (anonymously, of course) to approve the appropriations to fund them. Perhaps a legislator reading this would like to add a comment?
Financial disclosures pursuant to GASB regulations (governmental nonprofit) are vast compared to FASB (private, 501(c)(3) nonprofit).
That’s the way McConnell set up Friends of the Hunley, Inc., allowing his friend (and federal criminal) Warren Lasch to spend this money — federal, state, private — without accounting for it pursuant to GASB (think “Medical University”) and indeed without oversight by McConnell, the Budget and Control Board, or the Department of the Navy. Literally millions of dollars in “one page” invoices (without supporting documentation) were paid over, no questions asked.
This time the IRS, more sensitive to frauds of all flavors, nationwide, will follow Miles’s application because it is already a news item.
The IRS will have the final word on this story.
Currently the IRS takes three months to process 501(c)(3) applications.
I wouldn’t want my signature on that application. A willful and material misrepresentation made on form 990 is a criminal offense.
By Suzanne on November 15th, 2008 at 3:58 pm
Well then, I see from the Secretary of State’s web site, http://www.scseniorshield.com/ABOUT.aspx
Quote:
SENIOR SHIELD
Senior Shield, Inc. is a non-profit organization chartered in South Carolina and has applied for exempt status under Section 501 (c)(3) of the Internal Revenue Code.
Unquote.
that as of today, November 15, 2008, someone (Miles? Bauer?) has filed (past tense) for 501(c)(3) status.
We’ll send Mr. Bauer a Freedom of Information Act request for a copy of all pages of this application.
Stay tuned.
Suzanne
Hartsville
By Frank on November 17th, 2008 at 9:38 am
The question will be — Will Jim Miles take the fall for his greed and incompetence in this matter? Will he drag Andre down with him? We can rest assured that Andre didn’t originate this scheme. It was Miles all the way — Andre just went along because the hardest working politician is only the hardest working where it comes to running for office — not performing in office. This would not have occurred had not Miles replaced Loftis. What a loss for the state. Andre should be thinking twice about trying to funnel money that could pay for hot meals for seniors to his campaign. I suppose that we see where his priorities are.
Shame.
It’ll be interesting to see the responses to the FOIA’s — Miles can’t backdate a filing to the IRS.
By Provider on November 17th, 2008 at 4:17 pm
They told me over the phone I would pay an initiation fee plus between $65 and $85 per employee. I have over 100 employees and already do all these checks, plus a drug and TB test. I would be curious how much it costs this service per employee. I guess if it takes off I will have to jump on board.
By Ctacapa on November 20th, 2008 at 12:10 am
When I get a ticket for a driving violation I thank the officer and tell him I do deserve it. When ANDRE BAUER gets pulled by law officers he expects special treatment and gets it. Please do not make excuses for BAUER. BAUER is a big boy and BAUER knows exactly what BAUER is doing. If BAUER does not know what BAUER is doing, that alone is good reason for BAUER to resign and leave politics for those more intellectually astute. The only way BAUER can even begin to redeem himself is to lead the way and the efforts to return the $85,000 plus to us the tax payers. Otherwise hold the excuses for the naive. It is time we hold our elected officials to the higher standard not allow them the lower standard they seek for themselves. If I used fraud to take $85,000 from SC tax payers I expect that I would get to wear handcuffs. Will MILES & BAUER return the $85,000 received by fraud? Will they be held accountable? Is anybody in our state government capable of doing the right thing? Do they expect to break the confidence of the people because they are speeding to their own political destinations? Time will tell.
FYI, I am a registered Republican. I am fed up with criminal behavior by our elected officials. Why must they continue to be Republican?
You boys need to clean up your act or loose SC to the mantra of “Change.”
Oh, Elebazith. If BAUER is really outstanding I will see him return $85,000 to us tax payers and make a public apology for his involvement, intentional or otherwise, with this fraud.
By Karla on December 5th, 2008 at 5:38 pm
Elizabeth has an important point. What do the Seniors think about this new program? According to an article on MyrtleBeach online, “Silver Checked has about 75 businesses from the Washington, D.C., area that have applied for the vetting process, said Beth Dresing, vice president for marketing for Silver Nation.” This service could be a great tool to help Seniors.
By Karla on December 21st, 2008 at 10:31 pm
Seniors are speaking out for this program. http://www.myrtlebeachonline.com/opinion/story/709951.html
By Ctacapa on December 23rd, 2008 at 12:34 am
I asked a Senior if he knew that the Better Business Bureau provided the same service as “Senior Shield” without profiting from anybody’s yearly fees and not benefiting a politician’s self serving agenda. He said, “No, why does the web site want to duplicate this for a profit?” It is simple. Save the Whales. Save the Children. Save the Seniors. Follow the Money. When a “good” sounding business proposes the help someone, follow the money. The Seniors are to be used by the brilliant illustrious politicians and their Spin Doctors who even join this blog. Please, please, please, Andre stop with the fear tactics. Raise your campaign money honestly return the money to our State and call off the Spin Doctors. Eeailzbh & Klraa
By Karla on December 23rd, 2008 at 5:51 pm
Just like the Senior that you talked to, I was not aware that the Better Business Bureau provided the same service that “Senior Shield” does. I am no Spin Doctor. I am however concerned about Seniors and people taking advantage of them and I thought that this program was a good idea.