THIRSTY FOR LOOT

Welfare agency Red Bull fraud

A PAIR OF corrupt city bureaucrats ripped off more than $2 million in food stamps and public assistance over five years — even using stolen benefits to buy Red Bull in bulk and resell it, the city Department of Investigation said Tuesday.

Two Human Resources Administration workers were charged Tuesday with recruiting dozens of welfare recipients and others to game the system out of millions of taxpayer dollars between 2008 and 2013. Eleven co-conspirators were busted as well.

Human Resources supervisor Cherrise Watson-Jackson (photo inset) created fake electronic benefit transfer cards to generate $120,000, which was used to buy cases of Red Bull from BJ’s Wholesale Club, prosecutors said.

Watson-Jackson, 44, and her crew resold the high-octane drink to local stores and split the profits, DOI alleged.

“During a season when we are reminded about hunger’s prevalence, these defendants are charged with shamelessly stealing the funds that assist in feeding that basic need,” said DOI Commissioner Mark Peters.

Peters released a report pointing out flaws in the Human Resources Administration’s system, which until recently couldn’t track paper applications that weren’t entered into the city’s electronic system.

Watson-Jackson, a $63,000-a-year supervisor, also enlisted co-conspirators to pose as fake landlords to steal housing vouchers, prosecutors in Manhattan U.S. Attorney Preet Bharara’s office said. Watson-Jackson signed off on “rental arrears” checks to pretend landlords “to cover phony back rent owed by the phantom tenants,” said state Inspector General Catherine Leahy Scott.

Watson-Jackson was released Tuesday on $300,000 bond and got a taxpayer-funded lawyer because she says she can’t afford one. The lawyer, James Newman, declined comment.

Another Human Resources Administration employee, Petronila Peralta, 51, allegedly stole $600,000 in bogus cash assistance between 2008 and 2011. Peralta was fired in August 2014. Watson-Jackson was suspended Tuesday and the welfare agency began moving to fire her.

Human Resources Commissioner Steven Banks initially red-flagged the fraud and brought both cases to DOI to investigate.