SAN FRANCISCO—On March 13, the SF District Attorney’s Office announced that Maggie Pasigan, 49, and Daisy Avalos, 47, both of San Francisco, were charged for defrauding various public benefits providers of over $500,000. They were both arraigned on March 13, and each pleaded not guilty. Pasigan and Avalos are each charged with grand theft, welfare fraud, money laundering, and conspiracy.
According to court records, in 2023 the San Francisco Human Services Agency began investigatin Pasigan for fraud involving her receipt of public benefits. She had not disclosed that Avalos was her registered domestic partner, nor Avalos’ income as a city employee. Such income would have disqualified the household for public benefits, which are intended to assist only low-income families.
“The defendants’ fraudulent actions diverted over $375,000 in taxpayer funds from multiple federal programs, including HUD-assisted housing programs designed to provide safe and affordable housing for low-income families,” said Special Agent-in-Charge Robert Lawler, U.S. Department of Housing and Urban Development (OIG), Office of Inspector General (OIG). “HUD OIG remains committed to collaborating with its prosecutorial and law enforcement partners to aggressively pursue individuals who seek to exploit HUD-funded programs for personal gain.”
Additionally, investigators learned that Pasigan and Avalos were receiving over $30,000 per month in childcare subsidies from a nonprofit contractor stewarding public dollars to childcare and early education services for alleged child care they were providing. Through investigation it was learned that Pasigan and Avalos were not, in fact, providing childcare as they claimed. Over months of surveillance, there was no evidence of child drop-offs, pick-ups, or other signs of children even though the women claimed to be providing care for as many as 17 children during the same period.
This prosecution is the result of a joint investigation by several agencies including the US Department of Housing and Urban Development Office of the Inspector General, San Francisco Human Services Agency, and San Francisco Housing Authority. The SFPD and San Francisco Sheriff’s Office provided considerable and critical support to investigators throughout the two-year investigation.
The next court date for both defendants is April 22, 2025, to set a date for the preliminary hearing in this matter.
The case is still an active investigation. To make a report that someone may be receiving public benefits to which they are not entitled to, contact SFHSA’s Welfare Fraud Hotline at (415) 557-5771.
