I-Team: EBT and Cash

(WWLP) - Massachusetts' EBT system allows recipients to take out up to $500 in cash every month.  

22News I-Team reporter Ryan Walsh has been investigating the state's EBT system. 

This investigation started back in August.  Many of us know you cannot use EBT cards to buy lottery tickets, tobacco or alcohol,  but the 22News I-Team discovers there's nothing stopping someone from taking out cash at stores that sell..... well anything.  

"We have over $400 million a year spent on this program.  85% of that money is taken out in cash and we can't keep track of it", says State Representative Shaunna O'Connell (R) Taunton and a member of the current and previous state EBT Commission. 

An EBT or Electronic Benefit Transfer Card is simply an ATM or Debit card that gives people on welfare their money.

The 22News I-Team discovered that on average, $25 million in EBT money is taken out in cash in Massachusetts every month.  

Our 22News I-team investigation reveals in July alone there were five EBT cash withdrawals for a total of $480 dollars at Plaza Liquors in Chicopee.  There's no way to prove how the people actually use the money, but in the same plaza there is a Walmart with an ATM and a Chicopee Savings Bank.

"There's no restrictions on the cards, there's no way to stop someone from getting cash at any ATM", says O'Connell.

State representative O'Connell served on the state's EBT Commission earlier this year. Representative O'Connell was the only commission member of eight to vote in favor of eliminating cash benefits.

Dan Curley is the Department of Transitional Assistance Commissioner.  He wasn't available for an interview but sent us this statement.  

""Transitional assistance is about helping people help themselves - and it creates a path to self-sufficiency for so many families across Massachusetts. We are committed to working with our partners and stakeholders to continue to improve program integrity to protect the system for those families who need it. Studying a cashless benefit system is just one of many steps we are taking."

Our I-Team investigation reveals money is being taken out not just at liquor stores, but at places like off track betting locations and its possibly being used for bail.  The 22News I-Team obtained a copy of a Boston police report.  In April, a man was arrested for selling heroin.  The police report says during his phone call he said "GET MY EBT CARD AND GO TO THE ATM AND GET THE MONEY TO BAIL ME OUT."

"There are people that use it the right way and that's great, but unfortunately there are a lot of people that don't use it the right way and that really detracts from the integrity of the system", says O'Connell.

In July, Governor Patrick signed a welfare reform bill into law.  Then sent a letter to lawmakers saying his administration will not encorce it with respect to the use of EBT Cards. Representative O'Connell is currently serving on a Cashless system commission, but is not pleased with the progress so far.  The 22News I-Team will continue to investigate.