King County paid contractors billions despite missing records, red flags

According to a bombshell report from The Seattle Times, the King County Department of Community and Human Services (DCHS), the county’s largest agency, has for years ignored red flags, dismissed warnings, and continued paying contractors even when they failed to show proof of work or spending.

The findings echo a broader pattern already exposed at the state level within the Department of Children, Youth and Families (DCYF), where audits have repeatedly found missing records, overpayments, and weak financial controls.

The Times investigation details multiple cases where contractors collected hundreds of thousands of taxpayer dollars with little accountability. In one case, a cosmetologist created a business just weeks before landing a $470,000 county contract to provide job training.

Many of the “partners” listed in her proposal later said they had never heard of her. Her reports were largely blank, filled with vague entries like “done” or “not yet,” yet she still received at least $314,000 before her contract was quietly terminated. There was no finding of fraud and no attempt at a clawback of the money.

In another case, a contractor billed the county for expenses from Amazon, Prime Video, and Safeway, then refused to provide documentation after the contract ended, while reportedly living overseas.

Internal records show county employees repeatedly raised alarms about misuse of funds. “There are blatant misuses of funds happening,” one employee told auditors in 2024, adding that no one was available to investigate.

When grants administrator Tom Fullum flagged potential fraud in writing, he was fired just four days later. He has since filed a wrongful termination lawsuit, alleging retaliation. Meanwhile, county officials sat on at least one fraud complaint for over a year, even as contractors continued collecting taxpayer money.

The problems appear systemic. During the pandemic, the number of contractors grew by 41 percent, expanding from roughly 420 to 591 organizations, but staffing levels did not keep pace. As a result, oversight suffered. The department conducted site visits for only 22 percent of contractors, falling short of its own 33 percent target, and lacked basic safeguards such as department-wide anti-fraud training and consistent invoice verification procedures.

Multiple investigations are now underway, with reported inquiries from the FBI, DOJ, and IRS.

The King County revelations come as state audits have already flagged massive issues within DCYF. Auditors identified $37 million in questionable child care payments in 2025, while previously questioning $416 million in spending due to missing documentation. For four consecutive years, auditors said it was “impossible” to trace payments to individual providers. DCYF has also acknowledged $2 million in overpayments to child care providers.

Despite this, Attorney General Nick Brown has dismissed fraud claims as “baseless.”