SAN FRANCISCO, Calif. (CBS12) — A city employee and her partner are facing multiple charges after allegedly defrauding public agencies out of $500,000 in welfare benefits, including Section 8 housing and childcare benefits.
San Francisco District Attorney Brooke Jenkins announced on Thursday that 49-year-old Maggie Pasigan and 47-year-old Daisy Avalos were arraigned on charges of grand theft, welfare fraud, money laundering, and conspiracy. Both defendants pleaded not guilty to the charges.
The two-year investigation, which involved agencies like the U.S. Department of Housing and Urban Development (HUD), the city’s Human Services Agency, and the Housing Authority, uncovered the fraudulent activities. Jenkins praised the efforts of the law enforcement agencies involved, emphasizing that her office would hold those accountable who defraud public benefit systems.
“The integrity of our benefits systems is critical, and we will take action to hold those accountable who would defraud the system for personal gain,” Jenkins said.
Court documents show that the investigation into Pasigan began in 2023, when the city’s Human Services Agency found that she had failed to disclose her domestic partnership with Avalos and Avalos’ income as a city employee. Had the income been reported, their household would have been disqualified for public benefits.
According to the U.S. HUD Office of Inspector General, Pasigan and Avalos diverted over $375,000 from federal housing programs, including HUD-assisted housing programs meant to provide affordable housing for low-income families. The pair is also accused of illegally receiving over $30,000 a month in childcare benefits from a nonprofit contractor.
Investigators found that despite claiming to care for as many as 17 children, there were no signs of childcare activity, such as drop-offs or pickups, at their home.
Pasigan and Avalos are scheduled to return to court on April 22 to set a date for their preliminary hearing.
