DCHS investigation, potential fraud spur introduction of Inspector General legislation

April 27, 2026

Amid an ongoing investigation and allegations of potential fraud by grantees funded by the Department of Community and Human Services (DCHS), King County Councilmember Rod Dembowski this morning introduced legislation, co-sponsored by Councilmember Reagan Dunn, Council Chair Sarah Perry, and Councilmember Pete von Reichbauer, to establish an Inspector General Division within the Office of Public Complaints and Tax Advisor. The proposal is intended to strengthen the County’s ability to prevent, detect, and respond to fraud, waste, and abuse involving county-administered funds.

The legislation builds on last year’s King County Council vote approving a comprehensive reform package to overhaul oversight of taxpayer-funded grants within DCHS. That action followed an audit—called for by Dunn—and an ongoing investigation by the Office of the Ombuds, which identified widespread oversight failures and potential fraud in county contracts. The proposal also advances recommendations from a 2025 joint report by the King County Auditor and Ombuds, which identified significant gaps in financial oversight and reporting systems.

To ensure transparency and accountability, the Inspector General Division would be required to issue written findings and recommendations when fraud, waste, or abuse is identified, and to submit an annual report to the County Council and Executive. County agencies would also be required to report suspected misconduct through established channels.

The proposed Inspector General Division would investigate reports of financial fraud and abuse, with the authority to issue subpoenas and pursue recovery of misspent funds. The division would be led by an Inspector General Director appointed to a five-year term and supported by dedicated staff, including investigators and administrative personnel.

In addition, the legislation would establish a centralized King County Fraud Hotline, overseen by the Inspector General Division, creating a single point of access for reporting suspected fraud and improper conduct. The proposal also updates county policies by clearly defining fraud, waste, and abuse, requiring standardized inspection language in county contracts and grants, and aligning King County practices with those used by federal Offices of Inspector General and other jurisdictions nationwide.

The Inspector General Division would work collaboratively with the County Auditor and Ombuds, whose roles would remain distinct, focusing on performance oversight and administrative misconduct, respectively. Last month, the three councilmembers sent a joint letter to Executive Zahilay signaling their intent to introduce this legislation, following a Seattle Times report highlighting potential fraud and waste within DCHS.

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QUOTES:

“King County needs a powerful, independent Inspector General to root out waste, fraud, and abuse of taxpayer funds, and to aggressively pursue the recovery of funds when they are wrongfully spent,” said Councilmember Rod Dembowski. “While rare, fraud in public programs, including recent findings in some county programs, erodes public confidence and impairs our ability to do the good and essential work the public wants to see done. We must stand up strong systems to prevent it and bring accountability when it occurs. This office will have the power to do just that.”

“Taxpayers have had enough; they deserve a government that delivers real accountability for financial wrongdoing and provides tangible results,” said Councilmember Reagan Dunn. “An Inspector General division will give King County the teeth it needs to conduct rigorous oversight, pursue independent investigations, uncover improper conduct, and ensure meaningful repercussions.”

“One of the primary responsibilities of the King County legislative branch is as a check and balance of the executive branch,” said Council Chair Sarah Perry. “This ensures the infrastructure and social service investment made by our constituents is stewarded for greatest efficiency and effectiveness and within best financial practices. I’m dedicated to working with my colleagues across the legislative and executive branches to ensure that King County’s fiscal structures and practices are deserving of the trust of our King County community members – we owe that to our residents.”

“Fraud is crushing on two levels: for taxpayers who trusted that programs they paid for would help those in need, and for those in need who trusted resources would reach them,” said Councilmember Pete von Reichbauer. “This is just the first step on our road to restoring trust and accountability across all local public programs.”