A San Francisco city worker and her girlfriend have been charged with defrauding Section 8 housing funds and child-care benefits worth more than $500,000, District Attorney Brooke Jenkins announced Thursday.
Investigators discovered that the pair were receiving more than $30,000 monthly in child-care subsidies after claiming they were caring for up to 17 children. Months of surveillance showed no evidence of children at their home on 37th Avenue in the Sunset.
San Francisco Municipal Transportation Agency staffer Daisy Avalos, 47, and her partner, Maggie Pasigan, 49, were arraigned Thursday on charges of grand theft, welfare fraud, money laundering, and conspiracy. Both pleaded not guilty.
“We do not comment on pending investigations or personnel matters,” SFMTA spokesperson Michael Roccaforte said in an email.
Prosecutors allege that Pasigan failed to disclose her relationship with Avalos or Avalos’ government income, which would have disqualified their household from receiving public benefits intended for low-income families.
The investigation stems from 2023, when the Human Services Agency began examining Pasigan’s eligibility for public assistance.
Public records show that Pasigan owned two businesses in San Francisco. One, Legends Mama Boutique at 70 Bayview St., was listed as a prior residential address for Avalos, while the other, Magpie’s Daycare at 431 Page St., was the same as a prior address for Pasigan from 1999 to 2008. No business listings could be found online for either; both addresses appear to be residential.
“My office will take action to ensure the integrity of our benefits systems and seek to hold those accountable who would defraud the system for their own personal gain,” Jenkins said.
The case resulted from a joint investigation involving federal, state, and local agencies.
Avalos and Pasigan are scheduled to appear in court April 22 to set a preliminary hearing date. The San Francisco Public Defender’s office has been appointed to represent Avalos.
“We intend to fiercely defend her against these charges,” Jessie Seyfer, a spokesperson for the office, said in a statement. “Since it is very early in this process, we can’t speak to the details of this case, but we can tell you that we will be scrutinizing and investigating the evidence thoroughly.”
Attempts to reach Pasigan’s attorney were not immediately successful.
“The defendants’ fraudulent actions diverted over $375,000 in taxpayer funds from multiple federal programs, including HUD-assisted housing programs designed to provide safe and affordable housing for low-income families,” said Robert Lawler, special agent in charge of the U.S. Department of Housing and Urban Development Office of Inspector General.
Correction: An early version of this story incorrectly stated that Avalos worked for HSA. She works for the SFMTA.