Shock video: Medicaid caught encouraging fraud

'Drug dealers' applying for Medicaid

Undercover citizen journalist James O'Keefe is at it again, this time capturing on video an Ohio government worker helping a "drug dealer" commit Medicaid fraud.

Posing as Russian drug smugglers who drive an exotic, $800,000 sports car and hire out their underage sister as a prostitute, O'Keefe's operatives reportedly applied for Medicaid assistance for their father with the Franklin County Department of Job and Family Services, where government employee Traci Daniels told the applicants to omit listing their expensive car as an asset and report their line of work as "babysitting."

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"Maybe I just wouldn't mention it," Daniels said of the car, "not that I can say that. You didn't hear that from me. … He would be immediately not qualified."

Putting her fingers in her ears after discussing the alleged fraud, Daniels said, "Lalalalala, I don't hear."

Even after the operatives hinted strongly that they were in the drug business, calling their product "Bob Marley pharmaceuticals," the worker said, "I know what you're saying, and I don't want to hear what you're saying."

"Babysitting," she said, advising the "drug dealers" to list their business as something more innocuous.

As for the operatives' alleged underage sister, who they said does "sexual favors" for their clients and therefore needs abortions, Daniels merely referred them to Planned Parenthood.

The video can be seen below:

Under the names "Sergei" and "Evgeni Ivanovich," the "drug dealers" reportedly also visited offices in Marion County and London (Madison County), Ohio, as well, their hidden video camera capturing workers who listened dispassionately as they confessed to selling "illicit drugs" and using their underage sister to seal the drug deals.

According to O'Keefe's Project Veritas website, the case workers "never called the police, Child Protective Services or the Immigration and Customs Enforcement. In fact, the case workers appear eager to assist the reporters in filling out the necessary Medicaid paperwork."

The video begins by citing a report from The Columbus Dispatch that says it costs Ohio $15.4 billion per year to run the Medicaid program – or $29,000 per minute.

"In this time of economic uncertainty, the American people deserve to know how their tax dollars are being wasted," writes O'Keefe on his website. "This is hardly an isolated incident. Government workers willing to aid people with criminal backgrounds and great wealth should be an outrage to every American."

As WND reported, O'Keefe and his associate Hannah Giles produced a series revealing reports shot undercover at offices of the Association of Community Organizations for Reform, or ACORN, in which workers consented to help the pair, posing as a pimp and prostitute, use grants and programs to help establish their business, avoid IRS complications and more.

The exposé helped put ACORN's illegal and unethical operations in the spotlight, prompting Congress to remove the organization's federal funding, which in turn resulted in ACORN filing Chapter 7 bankruptcy on Election Day last year.