Watchdog Claims Union's Legal Fight Reveals ObamaCare Fraud

A Texas union’s dirty laundry -- aired out in court when workers charged they were cheated out of overtime pay – also shows the labor organization ripped off taxpayers under a $1.3 million contract to sign people up for ObamaCare, a watchdog group is claiming.

Non-profit group Southern United Neighborhoods got a $1.3 million federal grant in 2013 to serve as a "navigator," enrolling people in Affordable Care Act coverage. The group subcontracted with United Labor Unions Local 100, which, according to Cause of Action, paid members less than it billed the government and, in some cases, paid them to recruit union members. The watchdog group discovered the alleged discrepancy in court papers filed by union workers suing the labor organization for unpaid overtime.

“Southern United Neighborhoods and ULU Local 100, both rebranded ACORN entities, present a risk of violating the law – this time by potentially misusing over $1.3 million of taxpayer dollars for union activities instead of enrolling individuals in the Affordable Care Act,” Daniel Epstein, executive director for Cause of Action said to FoxNews.com.

More