More Trouble for JMC: Social Security Payments Taken Away by Judge

By Keary, Jim; Lacharite, Gretchen | The Washington Times (Washington, DC), June 20, 1996 | Go to article overview

More Trouble for JMC: Social Security Payments Taken Away by Judge


Keary, Jim, Lacharite, Gretchen, The Washington Times (Washington, DC)


While FBI agents were seizing records from JMC Associates, a company operated by a close ally of Mayor Marion Barry, a federal bankruptcy judge stripped control of Social Security payments to the company because officials used the money improperly, according to court records.

Until April JMC, whose chief executive officer was John B. Clyburn, held $4.1 million in contracts from the D.C. Department of Human Services to provide service to the mentally ill and homeless.

The department began the process to cancel the contracts because JMC provided shoddy service - including delinquent payments to vendors - but JMC instead filed for bankruptcy protection in an effort stop the department from taking away its only source of income.

At the request of Bryan Ross, a court appointed bankruptcy trustee for JMC, the FBI seized the company's records on Tuesday - the same day U.S. Bankruptcy Judge S. Martin Teel Jr. ordered that JMC no longer receive Social Security payments for its former clients. Judge Teel ordered the Social Security Administration to start making the payments to the D.C. Mental Health Commission, which in turn would pay JMC's former clients.

Motions filed by Mr. Ross in bankruptcy court said JMC would receive Social Security checks for its clients and would then disburse payments weekly to its clients. Mr. Ross said in the motion filed June 12 that it was possible the clients may not have been paid all they were owed by JMC and may become creditors.

"They used a portion of the Social Security payments for their operating expenses," said Mr. Ross. "It's not their money to use."

Mr. Ross said in his motion that it would be easier for the Mental Health Commission to make the payments so the clients' funds are not tied up in bankruptcy court.

Christopher Williams, a Social Security Administration spokesman, said JMC handled about $480,000 yearly for 80 of its clients and it appears JMC took a portion of the funds. …

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More Trouble for JMC: Social Security Payments Taken Away by Judge
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