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7 indicted in scheme to steal millions from food program for hungry kids

Instead of feeding kids, Hayes admitted she stole more than $1.5 million — spent on purchases that included Xboxes, Google Live, Big Fish Games, Shoe Carnival, Perfume Paradise as well as hotels.

A federal indictment unsealed Wednesday charged seven more people for their part in a scheme to defraud a state-run food program for hungry kids of up to $215,000.

The five women and two men are all relatives or friends of LaShane Hayes, a Knoxville woman who pleaded guilty to wire fraud and conspiracy earlier this year in the same scheme. It involved bilking a program that spends $80 million each year for meals and snacks for low income children in Tennessee child care centers and other child programs.

RELATED: 3/24/16 Tenn. agencies accused of pocketing money intended for hungry kids

Instead of feeding kids, Hayes admitted she stole more than $1.5 million — spent on purchases that included Xboxes, Google Live, Big Fish Games, Shoe Carnival, Perfume Paradise as well as hotels.

The seven others indicted posed as child care providers in Knoxville and Nashville, who contracted with Hayes' agency All About Giving, filling out phony paperwork claiming they had fed children who didn't exist, according to the indictment.

The Child and Adult Care Food Program is a federal program designed to reimburse child care providers for meals served to low-income children and a smaller number of adult day care programs for people with disabilities, but it is administered in Tennessee by the Department of Human Service, or DHS.

The additional indictments come after years of criticism and scrutiny over lax oversight by the Tennessee Department of Human Services, or DHS, which administers the program.

DHS's lax oversight of its $80 million food program has been highlighted by lawmakers, the state comptroller and a Tennessean investigation stretching back three years that found unscrupulous state contractors have pocketed millions of dollars intended for children in Tennessee, where 1 in 4 children are at risk for hunger.

Tennessee Comptroller Justin Wilson last year accused DHS leadership of being "in denial" over the problems. In December, DHS chief Raquel Hatter stepped down to pursue opportunities in the private sector.

Gov. Bill Haslam appointed Danielle Barnes as DHS commissioner in January. The allegations against Haynes and her relatives and friend preceded Barnes' tenure.

The indictments unsealed Wednesday named the following individuals as co-conspirators in the scheme:

- Alice Dunlap, 62, of Murfreesboro
- Adrian Jennings, 23, of Madison
- Brian Jennings, 46, of Springfield
- Clarissa Jennings, 35, of Springfield
- Juanita Mitchell, 61, of Murfreesboro
- Nicole Golden, 41, of Hendersonville
- Patsy Mathis, 73, of Knoxville

Each collected between $11,000 and $41,000 between March 2015 and July 2016. If convicted, the seven face up to 20 years in prison and a fine of up to $250,000 as well as the forfeiture of the proceeds of their offenses.

Reach Anita Wadhwani at 615-259-8092, awadhwani@tennessean.com or on Twitter @AnitaWadhwani.

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