According to an exclusive story in The Sacramento Bee, officials at California’s National Guard doled out as much as $100 million to Guard members between 1986 and 2009 in funds intended for federally subsidized student loan repayments and signing bonuses. According to an insider whistler-blower, of payments went to soldiers who didn’t qualify for the incentives, payments were made far in excess of the permitted limits, and amounts were illegally paid to captains and majors.
The investigation reports that the administrator in charge of the payments, Master Sgt. Toni Jaffe worked with little supervision, and operated the payment program as a giant slush fund, fabricating and backdating paperwork and making payments intended for combat vets to soldiers that never served a day at war.
Despite the Guard’s acknowledgement of “serious illegal activity” and “systemic and historic abuse and mismanagement of fiscal law, guidance and policy”, no mention was made of any intent to recover any of the improperly paid monies.