Rep Payee Outfit Leaves 600 In Limbo

From the Arizona Star:

Up to 600 elderly and disabled Tucsonans found their Social Security checks in limbo Tuesday after the company managing their funds abruptly shut its doors.

While the Social Security Administration is investigating SCOPE Payee Services, 524 N. Sixth Ave., its owners, Robert L. and Gary A. Skaggs, are nowhere to be found. ...

Since 2003, SCOPE has managed Social Security checks for the elderly and disabled [what Social Security calls a representative payee]. The non-profit functioned as a guardian, of sorts, receiving the checks and paying bills, like rent, for people who were not able to manage their own finances. The agency also distributed portions of the checks to the beneficiaries for day-to-day living expenses. ...

[C]ourt and state Corporation Commission documents suggest SCOPE and its predecessor, Specialized Creative Opportunities for Personal Environments, which also worked for the disabled and disadvantaged, were on collective shaky financial ground for years. ...

The Corporation Commission twice revoked the company's incorporation standing for failure to submit annual reports and pay appropriate fees. But the commission reinstated the company both times before dissolving it for good in 1998.

In October 1995, the company filed for corporate bankruptcy, but it continued to operate.

The U.S. Attorney's Office also filed a civil suit against Robert Skaggs and the company for unpaid 1996 income taxes and other payments. In March 2007, a federal judge signed an order for Robert Skaggs to pay $166,266.