Michelle Malkin

The feds and Seedco assure us that new management is in place. They rearranged some deck chairs, created a new "compliance program" and hired an independent reviewer. But an ethos of by-any-means-necessary book-cooking and a culture of intimidating whistleblowers don't disappear overnight. Seedco shredded documents for three years to phony up their job placement statistics; city government overseers knew about it. The Nonprofit Quarterly noted that Seedco's fraud was "kind of breathtaking" in its "creativity and illegal audacity," including:

--"Taking credit for a job candidate's prior employment as job placements;

--Reporting job placements when the job candidates remained unemployed;

--Falsifying dates of job placements;

--Using other Seedco programs to collect information on clients in order to falsely report job placements; and

--Reporting job placements for people who were not Seedco clients and had not been placed in their jobs by Seedco."

The feds detailed how Seedco managers would instruct clerical workers to troll Monster.com and Careerbuilder.com for resumes and then "report the employment of individuals sourced from those downloaded resumes as job placements." Other employees exploited their relationships with businesses to "gather information from the businesses' current employees. Seedco then used that information to falsely report that employment as a job placement obtained for the candidate by Seedco, although the individuals had no prior relationship with Seedco and had not been recruited into the job by Seedco."

This entire government-nonprofit alliance rests on dragooning as many people as possible into government programs, including food stamps, CHIP (the federal Children's Health Insurance Program) and now Obamacare. One of Seedco's officials actually said the fraud case "made us a stronger organization." Yes, they actually sold their deliberate number-fudging as an asset instead of a liability. And four states swallowed the pitch whole. The spirit of fraud-stained ACORN and its Nanny State progeny lives.

So, buyers, beware: Obamacare security "glitches" are not just a bug. They're a feature.

Michelle Malkin

Michelle Malkin is the author of "Culture of Corruption: Obama and his Team of Tax Cheats, Crooks & Cronies" (Regnery 2010).

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