Legal Defender Of Poor Under Scrutiny
When poor people need a lawyer — whether it's for a domestic violence case or help getting hurricane assistance — they can get free legal aid thanks to the taxpayer-funded Legal Services Corporation.
But a CBS News investigation begs the question of whether if those at the top can really relate to those they're serving.
The demand for free legal aid is so great that for every needy person who gets help from an office another is turned away, CBS News correspondent Sharyl Attkisson.
But there might be more money to help the poor if executives running Legal Services weren't wasting so many tax dollars, according to investigators who are now probing dozens of accusations from excessive spending to serious conflicts of interest.
Whistleblower allegations include tax dollars used for questionable trips to foreign countries, first-class travel, conferences in resort spots like Puerto Rico, and excessive bonuses for Legal Services president Helaine Barnett.
Ken Boehm — who used to be counsel to Legal Services' board of directors — says what's most egregious is the disconnect between the board and the needy they're supposed to serve.
"First of all, it shows bad management. Second of all, it's embarrassing. It's a lapse of judgment. This is, after all, an anti-poverty group," Boehm, who now works for the National Legal and Policy Center, says.
While their clients struggle to make ends meet, investigators say Legal Services' executives are treating themselves to five-star perks like lunch at the Four Seasons and dinner catered by the Ritz Carlton — all at taxpayer expense, as well as taking limos instead of taxis. A $400 trip around Washington, D.C. by board chairman Frank Strickland would have cost $5 if he'd just used the Metro.
And Legal Services is overpaying in rent by close to $9 million for unneeded space at headquarters for more than 10 years, according to the U.S. Inspector General's office.
The landlord was a corporation started by people who were, at the time, Legal Services employees. Congress says it is a conflict-of-interest and has dubbed the building an "oversized lavish headquarters... absorbing large sums that should be used to serve the poor."
While there's plenty of room for board meetings, Legal Services spends more tax dollars to rent space to hold meetings at the luxurious Melrose Hotel.
Meanwhile, the non-profit says it needs more money to serve the needy and is asking Congress for an $85 million budget increase — up to $411.8 million dollars.
"Anybody ought to be able to look at this and say 'How could you make the argument to Congress that this is an underfunded program when you're, you know, living like Marie Antoinette?'" Boehm asks.
When asked how his employees can identify with the needs of its clients, Strickland, Legal Services' chairman of the board, said, "I do not think for one minute that any of those people is out of touch with the mission of LSC and is acting in a frivolous manner."
Strickland denies any wrongdoing and defends every penny — the limo rides allow busy executives to work while being driven. The hotel is more convenient better for serving meals.
As for the Georgetown headquarters? LSC says they're actually saving money, and that their administrative costs are low by any standard.
"Our total budget for administration is about 4 percent of the annual budget and less than one-tenth of 1 percent is for the board's expenses," Strickland said.
Attkisson reports that once the Inspector General began digging into the case, there was talk at Legal Services of firing Strickland.
But, Congress issued a warning saying that would be obstruction and retaliation and said it will not be tolerated.