UPDATED Thursday, February 14, 2013 --- 4:25 p.m.

MADISON, Wis. (AP) -- A Wisconsin state official says a Middleton foster care company's alleged fraud was caused by a lack of financial oversight.

State Department of Children and Families officials told the Senate health committee on Thursday that the company's unusual expenses reports caught their attention in November 2011, when several counties reported missing the company's expenses reports.

The state says foster care companies used to set their own service rates and submit expenses to counties, but now the department can determine their rates and audit their expenses after legislators passed regulations in 2010.

The department says Community Care Resources Inc. has to pay back more than $6 million it allegedly overcharged by next Friday.

Community Care's attorney is disputing the allegations in a letter to the committee.

Copyright 2013: Associated Press
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UPDATED Thursday, February 14, 2013 --- 7:54 a.m.

MADISON, Wis. (AP) -- The findings of an audit of a Middleton foster care agency accused of fraud will get an airing before a state Senate committee.

Community Care Resources is accused of overcharging taxpayers millions by exploiting weaknesses in financial oversight by counties and the state. The Wisconsin Department of Children and Families has already revoked the company's license, and is seeking repayment.

The company's owner, Dan Simon, has denied the allegations.

The Senate Health and Human Services Committee will hear testimony Thursday.

Copyright 2013: Associated Press

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UPDATED Monday, February 11, 2013 --- 9:50 a.m.

MADISON, Wis. (AP) -- County officials working with a Middleton foster care agency accused of overcharging taxpayers say the financial information the agency disclosed wasn't detailed enough to spot potential misuse.

The State Journal says Community Care Resources may have overcharged taxpayers by more than $6 million by exploiting weaknesses in financial oversight by the counties and the state.

The Wisconsin Department of Children and Families revoked the agency's license following an audit it says found inflated salaries and taxpayer money spent on luxury cars, personal travel and other expenses between 2009 and 2011.

Owner Dan Simon has vigorously denied the allegations.

Until a year ago, the state had no oversight over the charges the company billed each county. Now the state sets the rates that can be charged per child.

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Information from: Wisconsin State Journal, http://www.madison.com/wsj

Copyright 2013: Associated Press

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Posted Monday, February 4, 2013 --- 3:15 p.m.

MADISON, Wis. (AP) -- Two Republican state lawmakers are calling for a criminal investigation of a Middleton foster care agency of misusing nearly $5 million in taxpayer money.

Sen. Leah Vukmir of Wauwatosa and Sen. Rob Cowles of Green Bay on Monday called for the state Department of Justice to investigate Community Care Resources.

The Wisconsin Department of Children and Families has revoked the license of the foster care agency following its own audit that found the agency inflated salaries and spent taxpayer money on luxury cars, personal travel and other inappropriate expenses between 2009 and 2011.

Owner Dan Simon has vigorously denied the allegations.

Cowles says in addition to the criminal investigation he is calling for a full review by the nonpartisan Legislative Audit Bureau.

Copyright 2013: Associated Press