exposing the dark side of adoption
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SEXUAL EXPLOITATION OF CHILDREN OVER THE INTERNET

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[109th Congress House Hearings]

[From the U.S. Government Printing Office via GPO Access]

[DOCID: f:31471.wais]

                     SEXUAL EXPLOITATION OF

                   CHILDREN OVER THE INTERNET:

                  FOLLOW-UP ISSUES TO THE MASHA

                          ALLEN ADOPTION

                               HEARING

                              BEFORE THE

           SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

                                OF THE

                        COMMITTEE ON ENERGY AND

                               COMMERCE

                       HOUSE OF REPRESENTATIVES

                      ONE HUNDRED NINTH CONGRESS

                            SECOND SESSION

                           SEPTEMBER 27, 2006

                           Serial No. 109-145

      Printed for the use of the Committee on Energy and Commerce

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                   COMMITTEE ON ENERGY AND COMMERCE

                      JOE BARTON, Texas, Chairman

RALPH. HALL, Texas                      JOHN D. DINGELL, Michigan

MICHAEL BILIRAKIS, Florida                  Ranking Member

  Vice Chairman                           HENRY A. WAXMAN, California

FRED UPTON, Michigan                      EDWARD J. MARKEY, Massachusetts

CLIFF STEARNS, Florida                    RICK BOUCHER, Virginia

PAUL E. GILLMOR, Ohio                     EDOLPHUS TOWNS, New York

NATHAN DEAL, Georgia                      FRANK PALLONE, JR., New Jersey

ED WHITFIELD, Kentucky                    SHERROD BROWN, Ohio

CHARLIE NORWOOD, Georgia                  BART GORDON, Tennessee

BARBARA CUBIN, Wyoming                    BOBBY L. RUSH, Illinois

JOHN SHIMKUS, Illinois                    ANNA G. ESHOO, California

HEATHER WILSON, New Mexico                BART STUPAK, Michigan

JOHN B. SHADEGG, Arizona                  ELIOT L. ENGEL, New York

CHARLES W. "CHIP" PICKERING,  Mississippi ALBERT R. WYNN, Maryland

  Vice Chairman                           GENE GREEN, Texas

VITO FOSSELLA, New York                   TED STRICKLAND, Ohio

ROY BLUNT, Missouri                       DIANA DEGETTE, Colorado

STEVE BUYER, Indiana                      LOIS CAPPS, California

GEORGE RADANOVICH, California             MIKE DOYLE, Pennsylvania

CHARLES F. BASS, New Hampshire            TOM ALLEN, Maine

JOSEPH R. PITTS, Pennsylvania             JIM DAVIS, Florida

MARY BONO, California                     JAN SCHAKOWSKY, Illinois

GREG WALDEN, Oregon                       HILDA L. SOLIS, California

LEE TERRY, Nebraska                       CHARLES A. GONZALEZ, Texas

MIKE FERGUSON, New Jersey                 JAY INSLEE, Washington

MIKE ROGERS, Michigan                     TAMMY BALDWIN, Wisconsin

C.L. "BUTCH" OTTER, Idaho                 MIKE ROSS, Arkansas                      

SUE MYRICK, North Carolina

JOHN SULLIVAN, Oklahoma

TIM MURPHY, Pennsylvania

MICHAEL C. BURGESS, Texas

MARSHA BLACKBURN, Tennessee

                       BUD ALBRIGHT, Staff Director

                      DAVID CAVICKE, General Counsel

        REID P. F. STUNTZ, Minority Staff Director and Chief Counsel

                SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

                      ED WHITFIELD, Kentucky, Chairman

CLIFF STEARNS, Florida                    BART STUPAK, Michigan

CHARLES W. "CHIP" PICKERING,  Mississippi   Ranking Member

CHARLES F. BASS, New Hampshire            DIANA DEGETTE, Colorado

GREG WALDEN, Oregon                       JAN SCHAKOWSKY, Illinois

MIKE FERGUSON, New Jersey                 JAY INSLEE, Washington

MICHAEL C. BURGESS, Texas                 TAMMY BALDWIN, Wisconsin

MARSHA BLACKBURN, Tennessee               HENRY A. WAXMAN, California

JOE BARTON, Texas                         JOHN D. DINGELL, Michigan

  (EX OFFICIO)                              (EX OFFICIO)                           

                                 CONTENTS

                                                                        Page

Testimony of:

        Wallace, Keith, Chief Executive Officer, Families Thru

                International Adoption                                     14

        Dymtchenko, Serguei                                             19

        Baird, Jr., Richard L., President and Chief Executive Officer,

                Adiago Health, Inc.                                     22

        Smith, Jeannene, Founder, Reaching Out Thru International

                Adoption                                             31

        Eiferman, Carol, Social Work Supervisor, Reaching Out Thru

                International Adoption                                     34

        Maskew, Trish, President, Ethica, Inc.                             73

        Rolsky, Jared, Board Member, Joint Council on International

                Child Services                                             77

                            SEXUAL EXPLOITATION OF

                          CHILDREN OVER THE INTERNET:

                            FOLLOW-UP ISSUES TO THE

                              MASHA ALLEN ADOPTION

                         WEDNESDAY, SEPTEMBER 27, 2006

                            HOUSE OF REPRESENTATIVES,

                       COMMITTEE ON ENERGY AND COMMERCE,

                 SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS,

                                                            Washington, DC.

       

    The subcommittee met, pursuant to notice, at 2:02 p.m., in Room

2123 of the Rayburn House Office Building, Hon. Ed Whitfield

(Chairman) presiding.

    Members present: Representatives Whitfield, Walden, Ferguson,

Burgess, Blackburn, Barton (ex officio), Stupak and Inslee.

    Staff present: Mark Paoletta, Chief Counsel for Oversight and

Investigations; Alan Slobodin, Deputy Chief Counsel for Oversight and

Investigations; Kelli Andrews, Counsel, Karen Christian, Counsel; John

Halliwell, Policy Coordinator; Ryan Ambrose, Legislative Clerk; Edith

Holleman, Minority Counsel; and Elizabeth Ertel, Minority Senior Staff

Assistant.

    MR. WHITFIELD.  I would like to call this hearing to order.  This

afternoon we are going to explore some issues on the behalf of the

committee relating to a young girl from Russia whose name today is

Masha Allen.  Unfortunately she never had an opportunity to defend, to

protect herself, or have questions answered into the process that led to

her being adopted by a pedophile named Matthew Mancuso when she

was 5 years old.  And we are here today to find out if there were any red

flags in the adoption of Masha that could have and maybe should have

been picked up by one of the various agencies and people involved in

this adoption.  What we have learned in the course of this investigation is

extremely troubling on many fronts.

    First, the evidence shows that Jeannene Smith, the founder of an

adoption agency called Reaching Out Thru International Adoption, was

the placement agency for Mancuso's adoption of Masha.  Mrs. Smith

attempted to mislead committee staff about her role in Masha's adoption

and withheld documents in an attempt to minimize her role.  I believe the

reason she sought to minimize her role is because with that role came

certain responsibilities.  Ms. Smith did not live up to those

responsibilities and as a result, Masha was left in the hands of a

pedophile for many years.  The primary responsibility that I am referring

to is one that Masha rhetorically asked the committee in her testimony

when she was here and she said, "Why didn't anyone ever come to check

on me?"

    No one came to check on Masha because Ms. Smith's agency, the

agency responsible for the placement of the child, never told the home

study agency that Mancuso had a child placed in his home, so the home

study agency never followed up.  Mrs. Smith also, in my view, shirked

her responsibility to obtain three post-placement reports required by the

Russian government, from Mancuso.  These reports required exactly

what Masha asked about; a licensed social worker to come see her at

Mancuso's home; to see how she was doing and progressing; and to talk

to her.

    Instead of, at a minimum, calling a licensed post-placement agency

in Pennsylvania, which is where Mancuso and Masha were living, and

asking them to contact Mancuso and set up a meeting, she went ahead

and had one of her social workers call Mancuso and write a report based

on a phone call.  This report was then sent to the Russian authorities as

an official post-placement report.  Notably, nowhere in the report does it

say it was based on a phone call.  It is my understanding that a telephonic

post-placement report is almost worthless and more importantly, a social

worker can only do a post-placement report in the State in which they

were licensed.

    Jeannene Smith and her social worker were not licensed in

Pennsylvania.  I would like to know why they did not take their

responsibility seriously and in the fact of documentation to the contrary,

why she has repeatedly tried to mislead committee staff into believing

she had a minor role and that her agency did not have contact with

Mancuso after Masha was brought to the United States.

    It is clear, from all the documents we have reviewed, that from the

start of Mancuso's adoption in August of 1997, all the way to the last

contact with him, the infamous telephonic post-placement report in

November of 2000, Ms. Smith and her employees were the only people

Mancuso was contacting about his adoption of Masha.  While certain

official forms that Mancuso submitted may have had her former

employee's company's name on it, an agency called Families Thru

International Adoption, at all times Mancuso was a client of Ms. Smith.

    I will certainly have some questions about why Families Thru

International Adoption was not more stringent in their overview of these

adoption applications that Ms. Smith was handling, but that doesn't take

away from her central role in Mancuso's adoption of Masha.  And we

expect to get some answers here today.  One of the things that is also

disturbing about this international adoption process is the lack of and

absence of any Federal guidelines or Federal regulations.  And so it

appears to me this is an area that certainly this committee and the Energy

and Commerce Committee, as a whole, needs to look at very closely.

    This whole episode is particularly disturbing to me and I know it is

to other members of the committee, and we were looking forward to this,

to the testimony of all members of the panel today.  We hope to get to

some answers and we want to make sure that we have minimized the

opportunity of this kind of thing to ever happen in the future.  And at this

time, I call on Mr. Stupak for his opening statement.

    [The prepared statement of Hon. Ed Whitfield follows:]

PREPARED STATEMENT OF THE HON. ED WHITFIELD, CHAIRMAN,

SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

    GOOD AFTERNOON.  TODAY'S HEARING FOLLOWS-UP ON

ISSUES RAISED AT THE SUBCOMMITTEE'S MAY 3 HEARING

INVOLVING THE ADOPTION OF A LITTLE GIRL FROM

RUSSIA-NAMED MASHA-- BY A PEDOPHILE, LIVING IN THE

UNITED STATES.  ON MAY 3RD, WE HEARD TESTIMONY FROM

MASHA ABOUT THE HORRORS OF SEXUAL ABUSE SHE FACED

DAY AFTER DAY, BEGINNING WHEN SHE WAS 5 YEARS OLD-

BY A PEDOPHILE WHO ADOPTED HER, NAMED MATTHEW

MANCUSO.  IT WOULD SEEM MANCUSO MUST HAVE SHARED

MANY OF THE TRAITS IDENTIFIED BY OUR PANEL OF

EXPERTS ON PEDOPHILES THAT WE HEARD FROM

YESTERDAY-TRAITS THAT ALL SUCCESSFUL PEDOPHILES

MUST HAVE LIKABILITY, TRUSTWORTHINESS, FRIENDLINESS

AND INTELLIGENCE.  BECAUSE, HOW ELSE COULD ALL OF

THESE VARIOUS ADOPTION AGENCIES THAT HAD SOME

SORT OF ROLE IN MANCUSO'S ADOPTION OF MASHA BEEN

FOOLED BY HIM ABOUT HIS ACTUAL INTENTIONS?  PERHAPS

IT WAS BECAUSE IN THE ADOPTION PROCESS IT IS NOT

UNUSUAL FOR THE AGENCIES INVOLVED TO NEVER MEET

THE PROSPECTIVE ADOPTIVE PARENT.  PERHAPS HE WAS

JUST 'TOO SMART' TO BE DETECTED DURING THE ADOPTION

PROCESS.  OR PERHAPS IT WAS BECAUSE PEOPLE DID NOT

LOOK CLOSELY ENOUGH AT THE PAPERWORK DURING

VARIOUS STAGES OF THE PROCESS AND RAISED THE

QUESTIONS WE WILL BE RAISING HERE TODAY.

    THE LOOMING QUESTIONS I HAD AFTER HEARING

MASHA'S TESTIMONY WERE-HOW COULD THIS ADOPTION

HAVE HAPPENED AND WHO IS ULTIMATELY RESPONSIBLE? 

    WE ARE HERE TODAY TO FIND OUT IF THERE WERE ANY

RED FLAGS IN THE ADOPTION OF MASHA THAT COULD

HAVE-AND MAYBE SHOULD HAVE-BEEN PICKED UP BY

ONE OF THE VARIOUS AGENCIES AND PEOPLE INVOLVED IN

THIS ADOPTION. WHAT WE HAVE LEARNED IN THE COURSE

OF THIS INVESTIGATION IS EXTREMELY TROUBLING ON

MANY FRONTS.  FIRST, THE EVIDENCE SHOWS THAT

JEANNENE SMITH, THE FOUNDER OF AN ADOPTION AGENCY

CALLED "REACHING OUT THROUGH INTERNATIONAL

ADOPTION," WAS THE PLACEMENT AGENCY FOR

MANCUSO'S ADOPTION OF MASHA.  MS. SMITH ATTEMPTED

TO MISLEAD COMMITTEE STAFF ABOUT HER ROLE IN

MASHA'S ADOPTION AND WITHHELD DOCUMENTS IN AN

ATTEMPT TO MINIMIZE HER ROLE. I BELIEVE THE REASON

SHE SOUGHT TO MINIMIZE HER ROLE IS BECAUSE WITH

THAT ROLE, CAME CERTAIN RESPONSIBILITIES.  MS. SMITH

DID NOT LIVE UP TO THOSE RESPONSIBILITIES AND AS A

RESULT, MASHA WAS LEFT IN THE HANDS OF A MONSTER

FOR SEVERAL YEARS.  THE PRIMARY RESPONSIBILITY THAT

I'<B style="COLOR: black; BACKGROUND-COLOR: #ffff66">M</B> REFERRING TO IS ONE THAT MASHA RHETORICALLY

ASKED THE COMMITTEE IN HER TESTIMONY:  WHY DIDN'T

ANYONE EVER COME TO CHECK ON ME? 

    NO ONE CAME TO CHECK ON MASHA BECAUSE MS.

SMITH'S AGENCY-THE AGENCY RESPONSIBLE FOR THE

PLACEMENT OF THE CHILD-- NEVER TOLD THE HOME STUDY

AGENCY THAT MANCUSO HAD A CHILD PLACED IN HIS

HOME.  SO THE HOME STUDY AGENCY NEVER FOLLOWED

UP.  MS. SMITH ALSO SHIRKED HER RESPONSIBILITY TO

OBTAIN 3 POST-PLACEMENT REPORTS, REPORTS REQUIRED

BY THE RUSSIAN GOVERNMENT, FROM MANCUSO.  THESE

REPORTS REQUIRED EXACTLY WHAT MASHA ASKED ABOUT: 

A LICENSED SOCIAL WORKER TO COME SEE HER AT

MANCUSO'S HOME, TO SEE HOW SHE WAS DOING AND

PROGRESSING AND TO TALK TO HER.  INSTEAD OF, AT A

MINIMUM, CALLING A LICENSED POST-PLACEMENT AGENCY

IN PENNSYLVANIA-WHICH IS WHERE MANCUSO AND

MASHA WERE LIVING-- AND ASKING THEM TO CONTACT

MANCUSO AND SET UP A MEETING-SHE WENT AHEAD AND

HAD ONE OF HER SOCIAL WORKERS CALL MANCUSO AND

WRITE A REPORT BASED ON A PHONE CALL. THIS REPORT

WAS THEN SENT TO THE RUSSIAN AUTHORITIES AS AN

OFFICIAL POST-PLACEMENT REPORT.  NOTABLY, NO WHERE

IN THE REPORT DOES IT SAY IT WAS BASED ON A PHONE

CALL.    IT IS MY UNDERSTANDING THAT A TELEPHONIC

POST-PLACEMENT REPORT IS WORTHLESS AND MORE

IMPORTANTLY, A SOCIAL WORKER CAN ONLY DO A POST-

PLACEMENT REPORT IN THE STATE IN WHICH THEY WERE

LICENSED.  JEANNENE SMITH AND HER SOCIAL WORKER

WERE NOT LICENSED IN PENNSYLVANIA.  I WANT TO KNOW

WHY JEANNENE SMITH DID NOT TAKE HER RESPONSIBILITY

SERIOUSLY AND--IN THE FACE OF DOCUMENTATION TO THE

CONTRARY-WHY SHE HAS REPEATEDLY TRIED TO MISLEAD

COMMITTEE STAFF INTO BELIEVING SHE HAD A MINOR ROLE

AND THAT HER AGENCY DID NOT HAVE CONTACT WITH

MANCUSO AFTER MASHA WAS BROUGHT TO THE UNITED

STATES.

    IT IS CLEAR FROM ALL THE DOCUMENTS WE HAVE

REVIEWED THAT FROM THE START OF MANCUSO'S

ADOPTION IN AUGUST 1997 ALL THE WAY TO THE LAST

CONTACT WITH HIM-THE INFAMOUS TELEPHONIC POST-

PLACEMENT REPORT IN NOVEMBER OF 2000-MS. SMITH

AND HER EMPLOYEES WERE THE ONLY PEOPLE MANCUSO

WAS CONTACTING ABOUT HIS ADOPTION OF MASHA.  WHILE

CERTAIN "OFFICIAL FORMS" THAT MANCUSO SUBMITTED

MAY HAVE HAD HER FORMER EMPLOYER'S COMPANY NAME

ON IT-AN AGENCY CALLED "FAMILIES THROUGH

INTERNATIONAL ADOPTION"-AT ALL TIMES MANCUSO WAS

A CLIENT OF MS. SMITH.  I CERTAINLY HAVE SOME

QUESTIONS ABOUT WHY "FAMILIES THROUGH

INTERNATIONAL ADOPTION" WAS NOT MORE STRINGENT IN

THEIR OVERVIEW OF THESE ADOPTION APPLICATIONS THAT

MS. SMITH WAS HANDLING, BUT THAT DOESN'T TAKE AWAY

FROM HER CENTRAL ROLE IN MANCUSO'S ADOPTION OF

MASHA.  I EXPECT TO GET ANSWERS TODAY.

    PERHAPS THE OTHER OVERARCHING PROBLEM THAT I

BELIEVE IS EXEMPLIFIED BY MASHA'S ADOPTION IS THE

PIECEMEAL NATURE OF THE INFORMATION FLOW-EACH

AGENCY INVOLVED, WHETHER IT'S THE HOME STUDY

AGENCY, OR THE PLACING AGENCY OR THE POST-

PLACEMENT REPORTING AGENCY-IS RELYING, IT SEEMS,

ON THE "OTHER" ONE TO LOOK MORE CLOSELY.  FOR

EXAMPLE, IT IS OBVIOUS FROM LOOKING AT DOCUMENTS IN

MANCUSO'S FILE THAT THERE ARE FORGED NOTARY

SIGNATURES.  WHY DIDN'T ANYONE QUESTION THIS?

MANCUSO SUBMITTED 6 REFERENCE LETTERS IN SUPPORT

OF HIS ADOPTION-AND YET NO ONE EVER CALLED ANY OF

THE REFERENCES TO FIND OUT IF THEY ARE REAL. WHY? 

TYPICALLY A PROSPECTIVE EMPLOYER CALLS REFERENCES

PRIOR TO HIRING A NEW EMPLOYEE-WHY WOULD THE

PROCESS BE LESS DILIGENT WHEN A CHILD FROM A

FOREIGN COUNTRY IS BEING PLACED IN A HOME?  WE ALSO

NOW KNOW THAT HIS BIOLOGICAL DAUGHTER-WHO WAS

20 YEARS OLD AT THE TIME OF MASHA'S ADOPTION AND

ESTRANGED FROM HIM-WAS ALSO SEXUALLY ABUSED BY

HIM FOR YEARS.  YET, NO ONE CONTACTED HER TO FIND

OUT WHAT KIND OF PARENT HE WAS. AGAIN I ASK WHY?

    I DON'T EXPECT AN ADOPTION AGENCY TO ACT AS A

POLICE AGENCY-HOWEVER, I DO EXPECT THAT WHEN YOU

ARE BRINGING A CHILD INTO A NEW COUNTRY, WHERE

THEY DON'T SPEAK THE LANGUAGE AND HAVE NO SUPPORT

SYSTEM AROUND THEM WHATSOEVER, THAT YOU PERFORM

DUE DILIGENCE.  CALLING REFERENCES, ENSURING THERE

ARE IN-PERSON FOLLOW UP VISITS WITH THE CHILD, AND

SPEAKING TO THE CHILDREN OF THE PROSPECTIVE

ADOPTIVE PARENT RISE TO THE LEVEL OF MINIMAL

DILIGENCE IN MY BOOK.  I POSE THIS LAST QUESTION TO

ILLUSTRATE HOW THE LACK OF FOLLOW-UP WITH

MANCUSO WAS SO CRITICAL:  HAD JEANNENE SMITH'S

AGENCY ACTUALLY READ THE 1ST POST PLACEMENT

REPORT FOR MASHA, SUPPOSEDLY DONE BY A COMPANY

CALLED "SOCIAL SERVICES OF WESTERN PENNSYLVANIA,"

AND BOTHERED TO CALL THE PHONE NUMBER LISTED ON

THE AGENCY'S LETTERHEAD-THEY PROBABLY WOULD'VE

DISCOVERED PRETTY QUICKLY THAT THE AGENCY DIDN'T

EXIST, THE ADDRESS DIDN'T EXIST, AND THE PHONE

NUMBER WAS DISCONNECTED.  PERHAPS THAT WOULD

HAVE TIPPED OFF MS. SMITH THAT SOMETHING WAS NOT

RIGHT HERE.  THAT REPORT WAS DONE IN MARCH 1999---

IMAGINE HOW MANY YEARS OF TORTURE AND ABUSE

MASHA WOULD HAVE BEEN SAVED FROM?

    I THANK ALL THE WITNESSES THAT ARE HERE TODAY TO

SHED LIGHT ON THIS SITUATION.   I BELIEVE THE WITNESSES

ON OUR 2ND PANEL CAN GIVE US SOME INSIGHT INTO

OVERALL INDUSTRY PRACTICES AND STANDARDS THAT

SHOULD BE FOLLOWED IN INTERNATIONAL ADOPTIONS AND

I LOOK FORWARD TO THEIR TESTIMONY AS WELL.

THANK YOU.

    MR. STUPAK.  Thank you, Mr. Chairman, and thank you for holding

this hearing.  In May we heard the horrifying story from Masha, herself,

about her adoption, as a 5-year-old Russian girl, by Matthew Mancuso, a

pedophile now in jail for what will likely be for a very, very long time. 

Masha lived through 5 years of abuse before she was rescued.  A police

officer in Illinois, talking to Mr. Mancuso on the Internet, thought

something was wrong and alerted two agents of the FBI, who went to her

home and found this abused child.  After that hearing, several of us asked

how could this adoption have happened?  Whose fault was it?  Could it

have been prevented?

    Today we have before us many individuals who were responsible for

placing Masha in this abusive situation with a sexual predator.  We will

hear from representatives of two adoption agencies who worked with Mr.

Mancuso; the Russian facilitator for the adoption; the home study

agency, which deemed him to be an acceptable adoptive parent; and

representatives of organizations who can explain what the Federal and

State rules for international adoptions were at the time, how they have

changed, and whether they have changed enough.

    What we will hear is that international adoption is a very loosely

controlled international business based on the premise that poor children

from poor countries are better off in the United States with adoptive

families than they are growing up in poverty or bleak institutions or on

the streets of their own countries.  The people who work for adoption

agencies believe that they are saving these thousands of children.  To be

fair, most of the time they are bringing them to a better and safer life in

America.  However, we will also hear today that there are very few

safeguards in place to stop people like Mr. Mancuso, who appeared

acceptable, but who planned to adopt a child to exploit for his sexual use

and on the Internet by other pedophiles.

    In Masha's specific case, there were two agencies involved.  Neither

one of them ever laid hands on Mr. Mancuso before he left for Russia. 

There were pre-adoption questions that weren't asked, a lack of pre-

adoption education classes that might have eliminated Mr. Mancuso as

an adoptive parent and follow-up reports on Mr. Mancuso's home that

weren't done.  The agency called Reaching Out Thru International

Adoption, which actually completed the adoption, never told the original

home study agency that Mr. Mancuso had adopted a child and needed to

have post-adoption reports under the requirements set by the Russian

government.

    Mr. Mancuso was never told by the agency that he was required to

re-adopt Masha in Pennsylvania, which would have then allowed the

State access to Masha and could have put in place court-required post-

adoption visits and reports.  The agency improperly and perhaps

illegally, did a follow-up report by telephone, claiming that Masha was

in a warm and loving home.  In fact, the social worker who filed this

report had never actually met Masha or Mr. Mancuso or been in their

home.  Would these steps have changed the outcome?  Would they have

shortened the time of abuse or allowed Masha to be rescued earlier?  We

don't know.  We do know, however, that these agencies never gave

Masha the opportunity to live in a safe and truly loving home.  Despite

the fact that these adoptions by pedophiles are rare, one is too many.

    When Americans take children from other countries, we promise

them a better and safer life and we must do everything we can to fulfill

that promise.  With that, Mr. Chairman, I will yield back and look

forward to hearing from our witnesses.

    MR. WHITFIELD.  Thank you.  At this time I recognize the Chairman

of the full Energy and Commerce Committee, Mr. Barton, for his

opening statement.

    CHAIRMAN BARTON.  Thank you, Mr. Chairman.  Thank you, Mr.

Stupak.  Last May this subcommittee heard testimony from a very brave

young girl, Masha Allen.  Masha was adopted from Russia by a man

from the Pittsburgh area, one Matthew Mancuso.  She was only 5 years

old.  Once Mr. Mancuso brought Masha home to Pennsylvania, he began

raping and molesting her and placing images of those actions on the

Internet.  At that hearing, Masha and her attorney raised serious and

troubling questions about the circumstances surrounding her adoption.

    Like all the members of this subcommittee, I was deeply troubled by

the pain and the suffering that she had endured.  I was also troubled by

the possibility that the adoption procedures supposedly intended to

protect her actually failed her.  The purpose of the hearing today is to

bring some much needed resolution and transparency to the questions

that were first raised by members of this subcommittee 4 months ago. 

Specifically, it was unclear, at that hearing, which adoption agency had

worked with Masha's adoptive father to place Masha with him.  There

were also questions about the home study of Mancuso.

    Mancuso was a divorced man who admitted, at the time of the

adoption proceedings, that he had little or no relationship with his adult

daughter from a previous marriage.  He also specifically requested a 4 or

5 year old in his adoption application.  Members of the subcommittee

questions whether some of those facts should have warranted additional

review and possibly rejection of Mr. Mancuso's adoption application. 

Finally, after Masha arrived in the United States, no one visited her or

Mr. Mancuso's home to conduct the follow-up post-placement reports

that were required by Russian law in order to learn whether Masha was

adjusting to her new home and family.  As Masha, herself, put it in our

hearing, she could not understand why no one came to check on her to

make sure that she was okay.

    Before this subcommittee, as witnesses this afternoon, are the

individuals who were involved in Masha's adoption from start to finish;

the adoption agencies, the home study agency, the social workers, and

the facilitator who assisted in conducting the adoption proceeding in

Russia.  I look forward to hearing their full story about their involvement

in Masha's adoption.  Answers to the questions first posed at our hearing

in May are long overdue.  We want to know which agency was

responsible for placing her with Mr. Mancuso.  We want to know why

the post-placement reports were not conducted after Mancuso brought

Masha from Russia to his home.  We want to know if something could

have been done to prevent her adoption by a man who seemed to have no

interest in being a father, but only a sexual exploiter.

    This committee is entitled to answers to these questions, but more

importantly, so is Masha.  I want to thank you, Mr. Whitfield and Mr.

Stupak, for holding this hearing.  With that, I yield back my time.

    [The prepared statement of Hon. Joe Barton follows:]

PREPARED STATEMENT OF THE HON. JOE BARTON, CHAIRMAN,

COMMITTEE ON ENERGY AND COMMERCE

    Thank you, Chairman Whitfield, for convening this hearing.

    Last May, this Subcommittee heard testimony from a very brave

young girl, Masha Allen.  Masha was adopted from Russia by a man

from the Pittsburgh area, Matthew Mancuso, when she was only five

years old.  Once Mancuso brought Masha home to Pennsylvania, he

began raping and molesting her and placing images of that abuse on the

Internet.

     At that hearing, Masha, and her attorney raised serious and troubling

questions about the circumstances surrounding Masha's adoption.  Like

all the members of the Subcommittee on Oversight and Investigations, I

was deeply troubled by the pain and suffering that Masha has endured,

but I was also troubled by the possibility that the adoption procedures

that were intended to protect her, ultimately failed her.

    The purpose of today's hearing is to bring some much needed

resolution to the questions raised four months ago at our hearing. 

Specifically, it was unclear at that hearing which adoption agency had

worked with Masha's adoptive father, Matthew Mancuso, to place

Masha with him.  There were also questions raised about the home study

of Mancuso.  Mancuso was a divorced man who admitted at the time of

the adoption proceedings that he had little or no relationship with his

adult daughter from a previous marriage.  He also specifically requested

a four or five year old girl in his adoption application.  Members of the

Subcommittee questioned whether some of these facts should have

warranted additional review or possibly rejection of Mancuso's adoption

application by the adoption or home study agency.  Finally, after Masha

arrived in the United States, no one visited her or Mr. Mancuso's home

to conduct the follow-up post-placement reports that were required by

Russian law in order to learn whether Masha was adjusting to her new

home and family.  As Masha herself put it at our hearing, she could not

understand why no one came to check on her to make sure that she was

okay. 

    Before this Subcommittee as witnesses this afternoon are the

individuals who were involved in Masha's adoption from start to finish:

the adoption agencies, the home study agency, the social workers, and

the facilitator who assisted in conducting the adoption proceedings in

Russia.  I am looking forward to hearing the full story from each of you

about your involvement in Masha's adoption.  Answers to the questions

posed at our May hearing are long past overdue.  We want to know

which agency was responsible for placing her with Mr. Mancuso.  We

want to know why the post-placement reports were not conducted after

Mancuso brought Masha from Russia  to his home.  And we want to

know if something could have been done to prevent her adoption by a

man who seemed to have no interest in being a father, but only in

sexually exploiting her.  This Committee is entitled to answers to these

questions, but more importantly, so is Masha. 

    I thank you, Chairman Whitfield, for holding this important hearing

and I yield back the balance of my time. 

    MR. WHITFIELD.  Thank you, Mr. Chairman.  At this time I

recognize the gentlelady from Tennessee, Mrs. Blackburn, for her

opening statement.

    MRS. BLACKBURN.  Thank you, Mr. Chairman.  I do want to thank

you and your staff for the work on this issue and I want to thank you and

our committee Chairman for allowing this hearing today.  To the

witnesses that will be before us, I thank all of you for your time.  As my

colleagues have said, this is a hearing that is one in a continuing process

for us as we review the vulnerabilities that exist that affect our children,

that affect the environment in which they live every day and trying to do

our best to be certain that that environment is safe and secure for them.

    As illustrated in the adoption of Masha, there are significant

deficiencies in the process of international adoption.  In February, the

State Department began an important step with reviewing many of these

deficiencies and working through the implementation process,

implementing the Hague Adoption Convention process.  As yet, I believe

that there still can be further improvement in international adoption and

we need to be very thoughtful in this process.

    Recently, I had the opportunity to visit with some Guatemalan

leaders and to talk with them about the issue of child trafficking and

adoption, and one of the things that continued to come up with them was

the reliability of information that was provided by the adoption agencies

to the United States.  We must ensure that these are in place, that there

are proper safeguards that are in place that will not allow some of these

practices that have taken place in the past to continue to take place.  But

we must work towards standards that streamline adoptions for American

citizens who want to genuinely adopt foreign-born children.

    Mr. Chairman, when these children go through the final phase of that

adoption process, they do become United States citizens with all of the

rights guaranteed to them by the Constitution.  It is our responsibility to

protect them from those such as Mr. Mancuso, who would seek to do

them harm.  So I thank our witnesses.  I again thank our Chairman and

the staff for their continuing work on this issue and I yield back.

    MR. WHITFIELD.  Thank you, Mrs. Blackburn.  At this time, I

recognize the gentleman from New Jersey, Mr. Ferguson, for 5 minutes.

    MR. FERGUSON.  Thank you, Mr. Chairman, to you and Mr. Stupak

for your continued leadership on this issue.  As we all know, this is the

second part of our eighth hearing on the Sexual Exploitation of Children

over the Internet.  Today's hearing is particularly disconcerting for me,

because of the role that my home State of New Jersey played in the case

of Masha Allen.  In May, our committee heard the heart wrenching story

of 12-year-old little Masha, who was adopted by Matthew Mancuso, who

abused her in his home in Pennsylvania for 5 years.  Thankfully, Mr.

Mancuso was apprehended and is now serving a lengthy prison sentence.

    However, this is an adoption that never should have taken place.  In

our previous hearing, we learned that Mr. Mancuso did not have a child's

bedroom set up in his home, forcing a 5-year-old girl to share a bed with

him and that he had an ex-wife and a daughter with whom he had no

relationship.  Later we learned that his biological daughter had also

suffered abuse at his hands.  What is most disturbing to me, personally,

however, is the fact that much of the adoption process took place in New

Jersey and one of the key players in this adoption is still practicing.  I am

anxious to learn what, if any, role the New Jersey Department of Youth

and Family Services had in this adoption and what can be done to correct

the obvious flaws in this system.

    I am glad that Chairman Whitfield and Mr. Stupak have decided to

follow up on this investigation.  The first time we heard about this, when

Masha was here, was absolutely heartbreaking.  When children are put

up for adoption, especially those coming to the United States from other

countries, they expect to be put in loving and caring homes.  Some of

these children want nothing more than a peaceful and loving family and a

warm bed to sleep in.  In Masha's case, this didn't happen.

    What is even more frightening, however, is the number of times that

her situation was overlooked.  Numerous reports were filed after her

adoption, yet it is my understanding that not a single person paid a visit

to the home.  No one called to speak to her, no one made sure she was

getting along with her new father, no one seemed to really care if she

was being taken care of, at all.  Surely, this is not the example that we

want to send to parents here or overseas, who give their children up for

adoption with the hope that they will have a better life and a stable home.

    Luckily, we have a number of individuals who can help us to answer

these questions that have arisen from this investigation of the Masha

Allen situation.  I am particularly looking forward to hearing from our

witnesses today from New Jersey.  I hope that they can enlighten us not

only to the flaws of the system in our State, but what can be done to

correct these problems across the country.

    Again, thank you, Chairman Whitfield and Mr. Stupak, for giving us

the opportunity to learn more about this horrible, horrible situation and

how we can address this issue in the future.  I yield back.

    MR. WHITFIELD.  Thank you very much, Mr. Ferguson.  And now I

would like to call the witnesses on the first panel.  We have with us this

afternoon, Mr. Keith Wallace, who is the Chief Executive Officer of

Families Thru International Adoption, Evansville, Indiana.  We have Ms.

Jeannene Smith, Founder, Reaching Out Thru International Adoption

from Somerdale, New Jersey.  We have Mr. Richard Baird, President and

Chief Executive Officer of Adiago Health, Pittsburgh, Pennsylvania.  We

have Ms. Carol Eiferman, who is the Social Worker Supervisor for

Reaching Out Thru International Adoption in Mount Laurel, New Jersey. 

We have Mr. Serguei Dymtchenko, who is from New Jersey.  We have

Ms. Marlene <B style="COLOR: black; BACKGROUND-COLOR: #a0ffff">Seamans-Conn</B>, who is a former Executive Director of

Reaching Out Thru International Adoption, from Sewell, New Jersey,

and we have Ms. Hannah Druger, Social Worker, Reaching Out Thru

International Adoption, from Medford, New Jersey.

    I want to thank all of you for joining us this afternoon as we delve

into this disturbing episode regarding Masha Allen and we look forward

to your testimony.  As you know, this is an Oversight and Investigations

Subcommittee of the Energy and Commerce Committee and we do take

our testimony under oath and I would ask each of you, do any of you

have any difficulty of testifying under oath today?  Do any of you want

to be represented by legal counsel today?  Okay, then if you would

please stand and raise your right hand.

    [Witnesses sworn.]

    MR. WHITFIELD.  Thank you.  Okay, all of you are under oath at this

time and I am going to recognize each of you for 5 minutes and we have

seven of you there, so this is going to take about 35 minutes or so.  But

anyway, I will note that when you speak, if you would be sure and press

the microphone button so that we can hear you so that your microphone

is on, and when your time is expired, a little red light will appear in the

front there, so I hope that you can keep it within that timeframe.  But

your testimony is very important and we do want to hear what you have

to say.

    So Mr. Wallace, you are recognized for 5 minutes.

TESTIMONY OF KEITH WALLACE, ESQUIRE, CHIEF EXECUTIVE OFFICER, FAMILIES THRU

INTERNATIONAL ADOPTION; SERGUEI DYMTCHENKO; RICHARD BAIRD, JR., PRESIDENT AND

CHIEF EXECUTIVE OFFICER, ADIAGO HEALTH, INC.; JEANNENE SMITH, FOUNDER,

REACHING OUT THRU INTERNATIONAL ADOPTION; CAROL EIFERMAN, SOCIAL WORK

SUPERVISOR, REACHING OUT THRU INTERNATIONAL ADOPTION;

    MR. WALLACE.  Chairman Whitfield and Ranking Member Stupak,

members of the House Subcommittee on Oversight and Investigations,

thank you for providing me with an opportunity to share my experience

in the field of child welfare.  I am pleased to be here today and hopeful

that the subcommittee will continue their good work against exploitation

of children.

    My name is Keith Wallace.  I reside in Evansville, Indiana and I

have the privilege of directing Families Thru International Adoption.  I

attended Valparaiso University School of Law and became a member of

the Indiana Bar in 1983.  I am admitted to practice before both State and

Federal courts, including the United States Supreme Court.  I practiced

law for many years before establishing or creating Families Thru

International Adoption, FTIA.  After starting FTIA, I continued to

actively practice law for several years before pulling back from the

practice of law and becoming Of Counsel with the law firm of Bowers

Harrison.  I also taught law as a foreign expert at Peking University in

Beijing, China in the International Law Department in 1990.

    When FTIA joined the Joint Council on International Children's

Services, JCICS or Joint Council, I began urging Joint Council to adopt a

system to enforce the Joint Council Standards of Practice more

stringently.  While my plan was originally rejected, I argued that without

an enforcement system, the standards were meaningless.  I am pleased to

say that I am now serving on the Board of Directors of Joint Council and

Joint Council has an enforcement system for its Standards of Practice.  I

am hopeful these Standards of Practice will one day be the highest

criteria for ethical and inter-country adoption practice, although they

could always be stronger.  The creation of enforcement system and

disciplinary policy is a first step.

    My father, who is the man I admire most on Earth, taught me many

things.  One of the many things he taught me was that if you are going to

do anything, do it right, and that means with honesty, integrity, and

commitment to perfection.  As I spent more time directing FTIA and

working with adoption professionals in several States, I have been

disheartened to learn that the social service field has no similar

professional standards nor enforcement system like the bar associations.

    I understand that I was invited here today to provide the committee

with all the information I have about the adoption of Mr. Mancuso. 

Since FTIA did not complete Mr. Mancuso's adoption, I don't have

much information, but I am here to share what I do know.  I was

contacted by Ms. Jeannene Smith in the second half of 1996.  Ms. Smith

asked if she could work with FTIA.  I contracted with Ms. Smith to work

as a northeast regional coordinator for FTIA.  Her main responsibilities

were to hold informational seminars for prospective adoptive parents,

provide education about adoption, and network with other professionals

to get out the word about services available from FTIA.

    Initially, I agreed to let Ms. Smith receive some original paperwork

for adopting parents in New Jersey and directly forward them to certain

overseas representatives, but after discussions with Anna Montez, the

New Jersey State licensing authority, I withdrew that permission and that

would have been very early on in our relationship.  Ms. Montez

explained that if Ms. Smith was to have responsibility with foreign

representative or process paperwork in New Jersey, FTIA would need a

New Jersey license and we had no intention at that time of obtaining a

New Jersey license.

    Through 1997, FTIA encountered many difficulties working with

Ms. Smith.  The main problems in Ms. Smith's performance were

promising time frames to prospective adopting families that were not

realistic, not following the procedures FTIA had established for her, and

misrepresenting her relationship with FTIA.  For these reasons and

others, I personally provided Ms. Smith verbal notice that I was going to

terminate her contract with FTIA.  As a courtesy, I advised her about a

month before I actually terminated her contract so she could either find

another agency to work with or establish her own agency.

    Ms. Smith was sent formal notice of her termination by letter of

February 13, 1998.  Ms. Smith then founded Reaching Out Thru

International Adoption.  Because Ms. Smith continued to misrepresent

her relationship with FTIA, FTIA sued Ms. Smith in Federal court in

December 1998 and the law suit was settled in June 1999.  Ms. Smith

recruited Mr. Mancuso to adopt while she was an independent contractor

for FTIA.  FTIA does not know how, when, or where Ms. Smith first had

contact with Mr. Mancuso.  FTIA did receive an application from Mrs.

Smith, excuse me, Ms. Smith for Mr. Mancuso in 1997.  The application

had FTIA's name, a New Jersey name and address which were Ms.

Smith's.

    FTIA later received a copy of Mr. Mancuso's dossier or paperwork

and a check in 1998.  The copy of the dossier and the check were sent to

FTIA by Ms. Smith.  However, FTIA never received an original dossier

from Mr. Mancuso.  When Mr. Mancuso submitted his dossier to Ms.

Smith in January of 1998, I believe I had already advised her that her

contract was going to be terminated with FTIA.  All files of adoptive

families that complete their adoption through FTIA have several contact

notes, copies of referral information on a child, copies of travel letters,

travel itineraries, and other documents.  None of this is in Mr. Mancuso's

file because he did not complete the adoption through FTIA.

    Soon after FTIA terminated its contract with Ms. Smith, FTIA sent a

notice to the families that Ms. Smith had originally recruited.  FTIA

advised the families that wanted to continue with FTIA, all subsequent

contact would need to be with FTIA, meaning in Evansville, Indiana. 

Applicants in the process of adopting that did not respond to the letter or

perhaps a phone call in addition, had their files closed.  Mr. Mancuso

was such a client, with no record of any direct contact with Evansville or

the Evansville coordinator.  Although we had received an application and

a copy of the dossier from Ms. Smith, our records had no direct contact. 

I concluded that he and others that did not respond to the letter from

FTIA, advising Ms. Smith's termination, had completed their adoption

with Ms. Smith's new agency.  These applicants' files were closed,

including Mr. Mancuso.

    FTIA is currently licensed or accredited in Russia by the Ministry of

Education.  FTIA has a 100 percent record of submitting post-placement

reports to Russia.  As far as I can recollect, I do not know one that has

not been submitted and that is in 10 years.  I have worked very hard to

make certain all post-placements were submitted.  Most families

cooperate, but I have had to threaten legal action against some families to

secure their cooperation because I have to remind them of a document

they signed at the beginning of the process.

    I do not know for certain what adoption agency completed Mr.

Mancuso's adoption other than the assumption it was Ms. Smith, based

on her correspondence to me dated April 21, 1998, which has been

submitted to this subcommittee.  I don't know for certain, from my

perspective, if anything was done wrong in the procedure allowing the

adoption; however, from what I have seen and heard, something went

very wrong with the required post-placements.  To hear her story is

heartbreaking beyond words.  I offer my full support to this committee's

efforts to prevent another child from having to endure what Masha

endured.  Thank you.

    [The prepared statement of Keith Wallace follows:]

PREPARED STATEMENT OF KEITH WALLACE, CHIEF EXECUTIVE

OFFICER, FAMILIES THRU INTERNATIONAL ADOPTION

    My name is Keith Wallace.  I reside in Evansville, Indiana and I

have the privilege of directing Families Thru International Adoption, Inc.

("FTIA").  I attended Valparaiso University School of Law and became a

member of the Indiana Bar in 1983.  I am admitted to practice before

both state and federal courts including the U.S. Supreme Court.  I

practiced law for several years before creating FTIA in 1995.  After

starting FTIA, I continued to actively practice law for several years

before pulling back from the practice of law and becoming Of Counsel to

the law firm of Bowers Harrison Llp.    I also taught law as a foreign

expert at Peking University in Beijing, China in the International Law

department in 1990. 

    FTIA is a member of Joint Council on International Children's

Services ("JCICS").  When FTIA joined JCICS, I began urging JCICS to

adopt a system to enforce the JCICS Standards of Practice.  While my

plan was originally rejected, I argued that without an enforcement system

the standards were meaningless. I am pleased to say I am now serving on

the JCICS Board of Directors and JCICS has an enforcement system for

its Standards of Practice.  It is not what I hope it will become but it is a

first step.

    I have been honored by Senators Lugar and Bayh who nominated me

as an "Angel in Adoption" with the Congressional Coalition on Adoption

Institute.  Prior to that I was honored by the late Governor O'Bannon in

Indiana as a Sagamore of the Wabash.  I have also received an award

from the local Habitat for Humanity in my community.  I have worked in

the learning center of my church for several years and I have served on

the board of an inner city ministry for more than 10 years.

    I am currently a member of the Indiana Bar Association, Kentucky

Bar Association, American Academy of Adoption Attorneys, American

Immigration Lawyers Association, the Christian Legal Society, and the

American Inns of Court.

    When first incorporated in March of 1995, the name of the non-profit

corporation was Children of China because when I started in

international adoptions, I was only thinking about helping some children

of China find a family.  In 1996, the name was changed to Families Thru

International Adoption because I decided to consider working in

additional countries.  FTIA has placed children from China, Russia,

Vietnam, India, Brazil, Guatemala and Kazakhstan.  Currently, we work

in all of those countries except Kazakhstan. 

    I have directed FTIA according to the same code of professional

standards that govern attorneys.  FTIA was one of the first exclusively

international adoption agencies to receive accreditation from the Council

of Accreditation for Child and Family Services (the "COA") in 2000. 

The COA is, I believe, the only national accrediting body of social

services organizations.  COA requires the agencies it accredits to comply

with best practices, something FTIA has always committed to.  To

become accredited, there is an extensive self-study.  Also, the agency

must have independent financial audits, comprehensive policies, and

demonstrate that it adheres to the polices through a site visit. 

    My father, who is the man I admire most on this earth, taught me

many things.  One of the many lessons he taught me is that if you are

going to do anything, do it right - and that means with honesty, integrity

and commitment to perfection.  As I spent more time directing FTIA and

working with adoption professionals in several states, I have been sad to

learn that the social service field has no similar professional standards

nor policing like the state bar associations. 

    I understand that I was invited here today to provide this committee

with all information that I have about an adoption by Mr. Mancuso that

was completed in Russia.  I have already provided this committee with

documents from FTIA that concern his adoption.  Since FTIA did not

complete Mr. Mancuso's adoption, I have little information.  I am here to

share what I do know.

    When I first started with Children of China, I learned of another

agency in St. Louis also working with Chinese adoptions.  At the

invitation of this agency, I agreed to cooperate and partner with this

agency.  As I said earlier, I was practicing law full time and was not in it

for glory.  I thought cooperating with other agencies would be a good

idea.  After maybe six (6) months, I terminated the cooperation with this

agency for several reasons having to do with what my father taught me. 

During my brief time working with the St. Louis agency, I met several

other individuals also working with the St. Louis agency.

    I was the first to terminate my relationship with the St. Louis agency

and later several other individuals and agencies stopped working with

this group.  One such person was Ms. Jeannene Smith. 

    FTIA's working relationship with Ms. Smith was interesting, to say

the least.  Ms. Smith is very industrious and very intelligent.  It was

partially through her urging that FTIA developed some of its foreign

adoption programs.  Even if I had done research in starting a new

program, Ms. Smith would always have additional and helpful

information.  I even traveled with Ms. Smith several times when starting

a new program.

    I was contacted by Ms. Smith in the second half of 1996.   Ms. Smith

asked if she could work with FTIA.  I contracted with Ms. Smith to work

as a northeast regional coordinator for FTIA.  Her main responsibilities

were to hold informational seminars for prospective adoptive parents,

provide education about adoption, and network with other professionals

to get the word out about FTIA and the services we provide. 

    Initially I had agreed to let Ms. Smith receive some original dossiers

from adopting parents and forward paperwork directly to our foreign

representative for either Guatemala or Russia.  But, after discussions

with Anna Montez of the New Jersey state licensing agency, I withdrew

that permission - that would have been very early on, most likely in late

1996.  Ms. Montez explained if Ms. Smith was to have responsibility

with a foreign representative or process paperwork (dossiers) in New

Jersey, FTIA would need to obtain a New Jersey license.  At that time

FTIA had no interest in a New Jersey license.

    The problems of FTIA's working relationship with Ms. Smith were

several.  At the very beginning of her work in August of 1996, I

submitted a short agreement for her to sign.  She would suggest a

change.  I would make the change and resubmit the agreement to her

only for her to come up with an additional change. 

    Through 1997, FTIA encountered many difficulties with Ms. Smith. 

The main problems in Ms. Smith's performance were promising time

frames to prospective adopting families that were not realistic, not

following the procedures FTIA had established for her, and

misrepresenting her relationship with FTIA.  For these reasons and other

reasons, I personally provided Ms. Smith verbal notice that I was going

to terminate her contract with FTIA.  As a courtesy, I advised her about a

month before I actually terminated her so she could either find another

agency to work with or she could get her own license.  Ms. Smith was

sent formal notice of her termination by letter dated February 13, 1998. 

Ms. Smith then founded an agency Reaching Out through International

Adoption (Reaching Out).  Because Ms. Smith continued to misrepresent

her relationship with FTIA - after she created Reaching Out - FTIA sued

Ms. Smith in federal court in December 1998.  The lawsuit was settled in

June, 1999.

    After terminating her relationship, then we actually signed some

agreements.  We signed more than one agreement to settle our

outstanding issues because after an agreement was signed, all the sudden

there were new issues according to Ms. Smith or issues I thought had

been settled but Ms. Smith did not understand it that way.  During this

period, I even wrote a letter of recommendation to the New Jersey

licensing authority on her behalf.  I had concluded that she could not

work for FTIA, but I knew she was smart so I thought maybe she can run

her own agency.

    It was not until later that I finally said enough is enough and filed

suit against Ms. Smith.

    Ms. Smith recruited Mr. Mancuso to adopt while she was an

independent contractor for FTIA.  FTIA does not know how, when, or

where Ms. Smith first had contact with Mr. Mancuso.  FTIA did receive

an application from Ms. Smith for Mr. Mancuso in 1997.  The

application had FTIA's name, but Ms. Smith's email address and

physical address.   FTIA received a copy of Mr. Mancuso's dossier and a

check in January 1998, which represented the second of three (3)

payments for the FTIA agency fee.  Again, the copy of the dossier and

the check were sent to FTIA by Ms. Smith.  However, FTIA never

received an original dossier from Mr. Mancuso.  When Mr. Mancuso

submitted his dossier to Ms. Smith in January of 1998, I believe I had

already verbally advised Ms. Smith that her contract with FTIA would

soon be terminated. 

    The way FTIA has always processed applications is: after receiving

an application it would be reviewed to determine if it was complete and

the applicant(s) appeared to be qualified candidates for international

adoption based on the information in the application.  If approved, a

coordinator is assigned to assist the family from start to finish with their

adoption.  The assigned coordinator would typically call the new

applicant to introduce his/herself and to explain he/she was available to

answer questions as they worked on INS (now CIS) approval and their

dossier.  Ms. Smith, as a regional coordinator, would provide some

support and guidance during the dossier preparation, however, once the

dossier was submitted all subsequent contact was to be with the FTIA

coordinator in Evansville.  This would include sending the referral

information of a child to the family, arranging travel to the foreign

country, providing travel letters and instructions and follow-up with all

required post placement reports.

    All files of adoptive families that complete their adoption through

FTIA have several contact notes, copies of referral information on a

child, copies of travel letters, and travel itineraries, etc.  None of this is in

Mr. Mancuso's file because FTIA did not complete his adoption.

    Soon after FTIA terminated its contract with Ms. Smith, FTIA sent a

notice to the families that Ms. Smith had recruited.  FTIA advised that if

the family wanted to continue with FTIA all subsequent contact would

need to be with FTIA.  Applicants in the process of adopting that did not

respond to this letter had their files closed.

    Mr. Mancuso was such a client with no record of any direct contact

with an Evansville coordinator.  Although we had received an

application and a copy of the dossier from Ms. Smith, our records

indicate no contact directly with Mr. Mancuso.  I concluded that he and

others that did not respond to the letter from FTIA advising of Ms.

Smith's termination had completed their adoptions with Ms. Smith's new

agency.  These applicants' files were closed.

    Thus, in Mr. Mancuso's case, even though he completed an FTIA

application (with a New Jersey address) and FTIA appears on some of

his dossier documents, FTIA did not complete his adoption.  Of

particular note about Mr. Mancuso's file - the home study prepared by

Family Health Council, Inc. dba Family Adoption Center of

Pennsylvania identifies FTIA as a New Jersey licensed agency.  Mr.

Mancuso submitted his original dossier to Ms. Smith, but FTIA never

received his original dossier.  If Evansville had received an original

dossier, we would have record of (1) receiving it, (2) reviewing it, (3)

sending it to one of the Russian coordinators/facilitators we worked with

at the time.  In addition, we would have record of receiving the last

payment of his FTIA agency fee as well as a copy of the international

fees.  There are no such records and FTIA still has possession of all

records from the inception of FTIA in 1995.  Our policy was and is to

keep a copy of all checks received at FTIA in the adoptive parent's file.

    FTIA is currently licensed/accredited in Russia by the Ministry of

Education.

Russia has long required four post placement reports after an

international adoption is completed.  Prior to the rule of four post

placement reports, I believe Russia required three post placement reports. 

FTIA has a 100% record of submitting post placement reports to Russia

as far as I can recollect.  I have had to work very hard to make certain all

post placement reports are submitted.  In fact, I had to threaten legal

action against a few families to secure their post placement reports.  I

have always had families sign documents agreeing to submit all required

post placement reports and that if FTIA had to go to court to force

compliance, FTIA would also be entitled to attorney fees.  Most families

willingly submit post placement reports.  But a few families are not

cooperative with the post placement report for a number of reasons.

    I do not know for certain what adoption agency completed Mr.

Mancuso's adoption.  I do know it was not FTIA, and I assume it was

Ms. Smith based upon her April 21, 1998 communication to me when we

were trying to settle outstanding issues of her termination. I do not know

if anything was done wrong in the procedure allowing Mr. Mancuso to

adopt.  However, from what I have seen and heard something went very

wrong with the required post placements.

September 25, 2006

    MR. WHITFIELD.  Thank you, Mr. Wallace.  And Mr. Dymtchenko,

you are recognized for 5 minutes for your opening statement.

    MR. DYMTCHENKO.  My name is Serguei Dymtchenko.  I was born

in Russia in 1957.  I am married and I have a daughter.

    MR. WHITFIELD.  Would you move the microphone up closer and

make sure it is turned on?

    MR. DYMTCHENKO.  I have a Bachelor's degree in architecture.  I

came to the United States for the first time in 1989 and after that, I

returned several times for business purposes.  Me and my family

immigrated as permanent residents in 1992, so in 2002 I became a

United States citizen.  Initially, I became involved in international

adoption when I helped a friend who was interested in adopting a child

from Russia in 1995-1996.  I believe that she is the person that provided

me with the contact information for Jeannene Smith, who was very

interested in opening an adoption program in Russia.

    At a later date, Jeannene Smith introduced me to Keith Wallace and

that meeting took place in her home office in Cherry Hill, New Jersey

and I started working with FTIA.  Please note that I was not involved

with the actual placement of the children.  My responsibilities were to

ensure that all of the documents submitted by the prospective parents

were up to date and in compliance with Russian laws and regulations.

    These responsibilities included managing and providing the

following services: Arrange for the translation and notarization of all

documents in Russia; ensure all the necessary documents were submitted

to the Russian authorities; receive the invitation for the prospective

parents to travel to Russia from the Russian authorities; arrange for the

prospective parents to be met upon their arrival at the airport in Moscow;

provide airport transfers; purchase domestic plane tickets from Moscow

to the region; arrange for the prospective parents to be met upon their

arrival at the regional airport; provide transportation, translation services,

lodging accommodations, meals, et cetera; ensure that the prospective

families had telephone, fax and Internet so they could contact their

doctor in the U.S. for the medical evaluation of the child; ensure that the

case was submitted to the court house for the proper filing; arrange for

the preparation of all necessary documents for the court hearing; provide

a translator for the court session. 

After the adoption was granted by the judge, arrange for the

obtainment of the certificate of adoption, the child's new birth certificate

and the child's passport for the adoptive parents; arrange for the

translation of all documents into English; arrange for the purchase of

domestic plane tickets from the region to Moscow for the adoptive

parents and their child; make the interview appointment at the United

States embassy in Moscow; arrange for the registration of the adopted

child with the Ministry of Foreign Affairs of the Russian Federation;

arrange for the translation and submission of four post-placement reports

to the Russian authorities for the first 3 years after the adoption.

    Jeannene Smith formed her own adoption agency by the name of

Reaching Out Thru International Adoption and I continued to fulfill my

obligations to her and her clients until the year 2000.  Unfortunately, I

was involved in Mr. Mancuso's adoption case because he was one

Jeannene Smith's clients.  I never had any direct communication with

him throughout his entire application process, since all communications

with prospective parents had to be through Jeannene Smith.

    I had not had any contact with Mancuso prior to greeting him at the

regional airport in Russia.  It was just a coincidence that I was in Russia

at the time of his arrival.  I was there for a business trip and since I was

available, I provided the translation services myself, including at the

visits to the regional administration, the orphanage, and to court session

and after.

    Regrettably, no one found anything suspicious about his paperwork

or in his behavior or in his demeanor.  Mr. Mancuso was able to deceive

everyone, including me, my staff, the officials at the administration, the

director of the orphanage, the judge, and the prosecutor, into believing

that he was a good person and a loving father whose daughter was

grown, and so he wanted nothing more than to provide a loving home for

a Russian orphan.  I wish that there was some way that I could have

known what this man was truly like so that I could have prevented any of

this from happening.  Sadly, the only people who knew the truth,

Mancuso's wife and daughter, chose to keep silent.

    That is it.  Thank you.

    [The prepared statement of Serguei Dymtchenko follows:]

PREPARED STATEMENT OF SERGUEI DYMTCHENKO

    My name is Serguei Dymtchenko. I was born in Russia in 1957; I am

married and I have a daughter. I have a Bachelor's degree in architecture.

I came to the United States for the first time in 1989, and after that I had

returned several times for business purposes. Then, in 1991-1992, I,

along with a partner, established two New Jersey based companies, and

my family and I immigrated here as permanent residents. In 2002, I

proudly became a U.S. citizen.

    Initially, I became involved in international adoption when I helped a

friend who was interested in adopting a child from Russia in 1995-1996,

and I believe that she is the person that provided me with the contact

information for Jeannine Smith, who was very interested in opening an

adoption program in Russia. At a later date, Jeannine Smith introduced

me to Keith Wallace, and that meeting took place in her home/office in

Cherry Hill, New Jersey and I started working with FTIA.

    Please note that I was not involved with the actual placement of the

children; my responsibilities were to ensure that all of the documents

submitted by the prospective parents were up-to-date and in compliance

with Russian laws and regulations. These responsibilities included

managing and providing the following services:

        &lt;bullet&gt; Arrange for the translation and notarization of all documents

in Russia

        &lt;bullet&gt; Ensure that all necessary documents were submitted to the

Russian authorities

        &lt;bullet&gt; Receive the invitation for the prospective parents to travel

to Russia from the Russian authorities

        &lt;bullet&gt; Arrange for the prospective parents to be met upon their

arrival at the airport in Moscow; provide airport transfers; purchase domestic

plane tickets from Moscow to the region

        &lt;bullet&gt; Arrange for the prospective parents to be met upon their

arrival at the regional airport; provide transportation, translator services,

lodging accommodations, meals, etc.

        &lt;bullet&gt; Ensure that the prospective families had telephone, fax and

the Internet so they could contact their doctor in the U.S. for a medical

evaluation of the child

        &lt;bullet&gt; Ensure that the case was submitted to the court house for

proper filing; arrange for the preparation of all necessary documents for the

court hearing

        &lt;bullet&gt; Provide a translator for the court session

        &lt;bullet&gt; After the adoption was granted by the Judge: Arrange for the

obtainment of the Certificate of Adoption, the child's new Birth

Certificate and the child's Passport for the adoptive parents

        &lt;bullet&gt; Arrange for the translation of all documents into English

        &lt;bullet&gt; Arrange for the purchase of domestic plane tickets from the

region to Moscow for the adoptive parents and their child

        &lt;bullet&gt; Make the interview appointment at the U.S. Embassy in Moscow

        &lt;bullet&gt; Arrange for the Registration of the adopted child with the

Ministry of Foreign Affairs of the Russian Federation.

        &lt;bullet&gt; Arrange for the translation and submission of four Post

Placement Reports to the Russian authorities for the first three years after

the adoption.

    Jeannine Smith formed her own adoption agency by the name of

Reaching Out Through International Adoption. I continued to fulfill my

obligations to her and her clients until 2000.

    Unfortunately, I was involved with Mr. Mancuso's adoption case

because he was one of Jeannine Smith's clients. I never had any direct

communication with him throughout his entire application process, since

all communication with prospective parents had to be through Jeannine

Smith. I had not had any contact with Mr. Mancuso prior to greeting him

at the regional airport in Russia. It was just a coincidence that I was in

Russia at the time of his arrival - I was there for a business trip - and

since I was available, I provided the translation services myself,

including at the visits to the regional Administration and to the

orphanage, the Court Session and after.

    Regrettably, no one found anything suspicious in his paperwork, or

in his behavior or in his demeanor. Mr. Mancuso was able to deceive

everyone, including me, my staff, the officials at the Administration, the

Director of the Orphanage, the Judge and the Prosecutor, into believing

that he was a good person and a loving father whose daughter was

grown, and so he wanted nothing more than to provide a loving home for

a Russian orphan. I wish that there was some way that I could have

known what this man was truly like, so that I could have prevented any

of this from happening. Sadly, the only people who knew the truth - Mr.

Mancuso's wife and daughter chose to keep silent.

    MR. WHITFIELD.  Thank you.  Mr. Baird, you are recognized for 5

minutes.

    MR. BAIRD.  Good afternoon, Mr. Chairman and members of the

subcommittee.  My name is Richard Baird.  I am the president and CEO

of Adiago Health in Pittsburgh.  Adiago Health is a non-profit

organization providing services in 23 counties in western Pennsylvania. 

We promote the reproductive health and overall well-being of women of

all ages, their families, and their communities.  Our programs include

gynecology, pre-natal care, cancer screening, nutrition, preventive health

education, adoption, and applied research.  We serve over 100,000

clients a year, many of whom have limited resources.

    Our adoption program, called Family Adoption Center, has been

placing infants with adoptive families since 1983.  Our adoption program

is the Pennsylvania statewide training subcontractor under the Infant

Adoption Awareness Program.  Through this program, we train

healthcare and social service workers to better explain adoption to their

pregnant clients.  Over the past 24 years, we have placed 276 infants

with adoptive parents enrolled in our program.  For these direct agency

placements, Pennsylvania law requires that Family Adoption Center's

process included pre-placement home studies and post-placement

supervisory visits, and requires that they be conducted by a licensed

social worker.

    A home study is a written assessment of prospective adoptive parents

to determine their capacity to be adoptive parents.  The post-placement

supervisory visit entails a visit to the adoptive home to assess the child's

well-being and adjustment.  In addition to those 276 direct agency

placements for which we have conducted home studies, we have also

conducted another 37 home studies for prospective adoptive parents who

are not seeking an adoptive placement through us, but who are planning

to adopt domestically or internationally through private attorneys or

other agencies.

    We have always followed Pennsylvania laws and regulations

concerning adoption.  Our adoption program has been licensed by the

Pennsylvania Department of Public Welfare since 1983.  For each of the

past 24 years, the Department of Public Welfare has renewed our license

following their annual on-site audit of our program.  These audits include

a review of the home studies conducted both for direct agency

placements and for placements through attorneys and other agencies. 

The requirements for home studies for international adoption are

virtually the same as required by Pennsylvania law.

    Our role in the Matthew Mancuso adoption was limited to

conducting the home study.  We did not determine that Mancuso was

eligible to adopt.  We did not place a child with him for adoption.  We

were never notified that he had adopted and we were never contacted to

provide post-placement supervisory visits.  In 1997 Mancuso contacted

us because he needed a home study to be conducted by a Pennsylvania

licensed adoption agency.  On September 29 he submitted a completed

application to us with all the required information.  His application stated

that he was working with Families Thru International Adoption, a New

Jersey agency, to adopt a child from Russia.

    Our social worker contacted that agency and received confirmation

that Mancuso was their client and that he was eligible to adopt.  Our

social worker also obtained that agency's home study requirements.  She

had an interview session with Mancuso in our office in Pittsburgh on

October 9th and a second session at his house on October 22nd.  It is

important to note that Pennsylvania regulations governing home studies

consider interviews of prospective adoptive parents conducted by a

licensed social worker to be the primary source of information for the

home study.

    Our social worker also received Mancuso's child abuse and criminal

clearances and letters of reference.  Based upon her interviews and the

information that she received, our social worker gave Mancuso a

favorable recommendation for adoption and stated that Family Adoption

Center agreed to provide post-placement reports for a period of 3 years. 

By letter dated November 24, 1997, our social worker forwarded the

completed home study to Mancuso.  That ended our involvement in this

matter.  We were neither contacted to prepare post-placement reports or

even advised that Mancuso had adopted a child.

    It was incumbent upon the placing agency which had first-hand

ongoing contact with Mancuso to initiate the proper post-placement

supervisory process either by contacting us directly or by having him

contact us.  I want to reiterate that Family Adoption Center's role in

Mancuso's adoption process was limited.  We did not facilitate the

adoption or have any other involvement with Mancuso other than what I

have outlined here.

    In conclusion, please note that Adiago Health deplores what

occurred here.  We want to make sure that this kind of tragedy will never

happen again.  We fully support the committee's investigation and will

assist in any way that we can.  The system is undoubtedly complicated

due to the different countries and States involved, but nonetheless, every

effort should be made to ensure that every adopted child is placed in a

safe and loving home.  Thank you for your time.

    [The prepared statement of Richard Baird, Jr. follows:]

PREPARED STATEMENT OF RICHARD BAIRD, JR., PRESIDENT AND CHIEF

EXECUTIVE OFFICER, ADIAGO HEALTH, INC.

    In 1997, Matthew Mancuso contacted our adoption program, Family

Adoption Center.  He explained that he was working with a New Jersey

agency to adopt a child from Russia and that he needed a home study.  In

late September Mancuso submitted a completed application to us.

    Our Social Worker then contacted the New Jersey agency, Families

through International Adoption, to verify that he could adopt as a single

man and to obtain its home study requirements.      She reviewed the

materials submitted, including criminal and child abuse clearances and

letters of reference and conducted two interviews with him, one in our

offices and one in his home.  At that time, our Social Worker had

conducted 193 home studies over the previous 14 years.  Based on the

information she received and her interviews and home visit, she provided

him with a favorable home study and recommendation.  As required for

Russian adoptions, the recommendation included our agreement to

provide three years of post placement supervisory visits. 

    After our Social Worker provided the home study to Mancuso in

November 1997 we had no further involvement.  Neither Mancuso nor

the New Jersey placement agency ever contacted us to initiate post

placement supervisory visits as would be expected.  We had no

knowledge that he had adopted until the criminal investigation began in

2003.

Introduction and Background of Company

    My name is Richard Baird, and I am the President and CEO of

Adagio Health.  I have been with Adagio Health since 1978.  I was

Director of Finance until 1994 and Executive Vice President from 1994

until 2003, when I began my current position.  My educational

background includes a bachelor's degree in sociology and an MBA.

    Adagio Health is a 501(c)(3) charitable organization, incorporated in

1971.  Our mission is to promote the reproductive health and overall

well-being of women of all ages, their families, and their communities by

providing health care services and educational programs that are

responsive and creative.  We provide health and educational services for

women and families in a 23 county area of Western Pennsylvania.

    Over the years we have developed a number of programs and

services to more fully meet the needs of the communities we serve.  We

serve over 100,000 clients annually in our programs, which include:

        1. complete gynecological care;

        2. comprehensive pregnancy care from the initial prenatal visit

through delivery;

        3. cancer screening, including breast and cervical cancer screening

through mammograms and Pap tests, clinical breast exams,

education on breast self-exam, and diagnostic testing;

        4. community education on health-related topics, including diabetes

and tobacco use prevention and cessation, and adolescent

pregnancy prevention;

        5. nutrition services, including WIC in five counties, and

comprehensive nutrition counseling to individuals and groups

with health care needs such as diabetes, weight management, and

cardiovascular disease;

        6. domestic and international adoption services including special

needs adoptions, through our Family Adoption Center program;

        7. transitional housing for pregnant women and mothers who are

homeless or at risk for becoming homeless; and,

        8. applied health research in the areas of reproductive health,

tobacco cessation, states of behavior change, obesity, and

domestic violence.

    Many of the programs we provide are targeted to low income women

and families who would not receive these vital health services without

our assistance.

    Over the past 35 years, we have changed our name four times in

order to better position our organization for community and client

recognition.  Since 1971, we have operated under the following names:

    &lt;bullet&gt; Family Planning Council of Southwestern Pennsylvania, Inc.

(1971-1974)

    &lt;bullet&gt; Family Planning Council of Western Pennsylvania, Inc.

(1974-1985)

    &lt;bullet&gt; Family Health Council of Western Pennsylvania, Inc.

(1985-1988)

    &lt;bullet&gt; Family Health Council, Inc. (1988-2005)

    &lt;bullet&gt; Adagio Health Inc. (2005 - present)

    Our most recent name change was made in October 2005.  Following

a visioning session and a restatement of our mission, vision, and values

in 2003 and 2004, our board of directors and staff determined that

"Family Health Council, Inc." was difficult to distinguish from several

other non-profit Pittsburgh area non-profits with "family" in their name,

and that this caused confusion regarding our services.  We decided to

create a unique and easily recognizable name.  After an eight month

effort in 2005, we selected our new name.  We are currently in the

process of branding our new name for client and community recognition.

Family Adoption Center

    In the early 1980's, we established an adoption program to assist our

clients experiencing infertility.  Family Adoption Center has been

licensed to provide adoption services by the Pennsylvania Department of

Public Welfare since 1983.  Our adoption program assists prospective

adoptive parents in creating families while addressing the needs of

women experiencing unintended pregnancies by offering them

information and counseling on adoption. 

     Adagio Health also provides infant adoption educational training as a

subcontractor in Pennsylvania for the Infant Adoption Awareness

Training Program.  This training is provided to family planning,

community health center, and hospital staff throughout Pennsylvania to

enable them to understand and positively present the option of adoption

to a woman experiencing an unintended pregnancy.   

    Family Adoption Center has placed 276 infants in adoptive homes

during the 24 years it has operated, and has conducted 37 home studies

for parents pursing domestic or international adoption through other

agencies or private attorneys.  The Pennsylvania Adoption Code and the

Pennsylvania Department of Public Welfare ("DPW") require that its

adoption placements include home studies and post placement

supervisory visits. 

    I will discuss the home study process in greater detail later. 

However, a brief summary of the process is warranted now.  A home

study is a written study of prospective adoptive parents "for the purpose

of determining their capacity for adoptive parenthood."  55 Pa. Code  

3350.12(a).  The Pennsylvania regulations governing home studies states

that an adoption agency conducting a home study shall use "interviews

between an agency representative and the prospective parents as the

primary source of information."  Id.  In keeping with this mandate, our

social workers extensively interview prospective adoptive parents and

require them to submit lengthy autobiographies.  Pennsylvania

regulations also require that the home study include a description of the

visit to the home and community.  55 Pa. Code   3350.12(a)(3).  In

accordance with this requirement, our social workers visit the adoptive

parents' homes as part of the home study process. 

    With regard to post-placement visits, when our agency is the placing

agency, we are required to make at least three supervisory visits with the

child and the adoptive parents over a six month period.  55 Pa. Code  

335013(i).  Our home studies and post-placement visits are conducted by

licensed social workers who adhere to the requirements of applicable law

and follow industry standards.

    In addition to our infant adoption program, Family Adoption

Center's social worker conducts home studies for non-Family Adoption

Center adoption placements.  Over the last twenty-four years, we have

prepared thirty-seven pre-placement home studies for adoptive parents

pursuing private adoption or adoption through other agencies.  In 20, or

more than half, of those cases, Family Adoption Center was contacted to

do post-placement supervisory visits and conducted those visits. 

Background on Masha Allen's Case

    As Committee members are aware from previous Congressional

hearings, I am here to discuss Family Adoption Center's involvement in

a particular case - the case of Masha Allen.  The Committee has heard

testimony on this before, and I hope to lend some further insight as to

how something this horrible and tragic could have happened to a child

and how we can work together to prevent it from occurring again.

    For those of you who don't know the background, Masha Allen was

adopted from a Russian orphanage when she was five years old by a man

who horribly abused her.  His name is Matthew Mancuso, and he is now

in prison.  Ms. Allen has been re-adopted and now resides with her new

adoptive mother.  She has shown tremendous courage in providing

testimony and acting to assure that no other child is subjected to what she

had to endure.

Family Adoption Center's Role in Masha Allen's Adoption

    Family Adoption Center played a limited role in Ms. Allen's

adoption.  We prepared the home study that Matthew Mancuso was

required to have as part of his adoption. However, we did not determine

that Mancuso was eligible to adopt as a single man, and we did not place

a child with him for adoption.

    We became involved in this matter in late summer or early fall, 1997

when Mancuso contacted us and requested that we perform a home study

on his behalf.   He lived in the Pittsburgh area and needed a local agency

to conduct the home study.  At that time, our Social Worker had been

conducting home studies for over 14 years and had performed at least

193 home studies.  She was a member of the Three Rivers Adoption

Council, the National Council for Adoption and the North American

Conference on Adoptable Children and regularly attended conferences of

these organizations.  She was experienced and respected in the adoption

field.

    Upon Mancuso's inquiry, our Social Worker sent him an application

package. On September 29, 1997, we received his completed application

package which included the following completed documents:

        &lt;bullet&gt; Background Information Form: Family Study Application

        &lt;bullet&gt; Medical Certificate for Prospective Adoptive Parent

        &lt;bullet&gt; Pennsylvania Child Abuse and Criminal History Clearances

        &lt;bullet&gt; Medical History Form

        &lt;bullet&gt; Financial Form

        &lt;bullet&gt; his 1996 federal tax return

        &lt;bullet&gt; an employment verification letter

        &lt;bullet&gt; three letters of reference from non-relatives

        &lt;bullet&gt; a letter of reference from his mother

        &lt;bullet&gt; a lengthy autobiography

    Mancuso's home study application stated that he was working with

Families Through International Adoption in Cherry Hill, New Jersey, to

adopt a child from Russia.  On October 2, 1997, our Social Worker

contacted Families Through International Adoption and confirmed that

he was a client of that agency and that he could adopt as a single parent. 

She also obtained from Families Through International Adoption a list of

that agency's requirements for a home study.  Our Social Worker had an

interview session with Mancuso in our office in Pittsburgh on October 9,

1997, and a second session at his house on October 22, 1997, as part of

the home study process.  Following her review of the material submitted

to her and upon completion of her interviews, our Social Worker gave

Mancuso a favorable recommendation for adoption.  She also stated that

Family Adoption Center agreed to provide post-placement reports for a

period of three years.

    By letter dated November 24, 1997, our Social Worker forwarded

the completed home study to Mancuso.  We were neither contacted to

prepare post-placement reports nor even advised that Mancuso had

adopted a child.  In fact, we had no further involvement in this matter

until June, 2003, when the FBI contacted us to request a copy of our

Mancuso file.  Family Adoption Center did not facilitate the adoption or

have any other involvement with. Mancuso other than what I have

outlined here.

Relevant Laws Applicable to Adoption Home Studies

    As I have already explained, Family Adoption Center typically

provides home studies for clients adopting through our domestic infant

adoption program. We have also performed 37 home studies for adoption

placements handled by other adoption agencies or private attorneys for

both domestic and international adoptions.

    The home studies Family Adoption Center performs for international

adoptions are governed by Pennsylvania law, regulations from the United

States Bureau of Citizenship and Immigration Services in the

Department of Homeland Security (BCIS or USCIS), the foreign country

in which the child resides, and sometimes the state of residence of the

adoptive parent. 

    Organizations performing home studies must be licensed by the state

to do so and must follow general requirements. As a general matter,

requirements for a home study in an international adoption under

Pennsylvania law and federal regulation include the following:

        &lt;bullet&gt; interviews with adoptive parents;

        &lt;bullet&gt; a written autobiographical statement;

        &lt;bullet&gt; letters of reference which come from persons who have

observed the applicant in situations that may indicate his or her capacity

for parenthood;

        &lt;bullet&gt; a criminal and child abuse background search;

        &lt;bullet&gt; interviews with other adult occupants of the household;

        &lt;bullet&gt; evidence of financial ability to support a child;

        &lt;bullet&gt; statement by a physician discussing medical history and

status as evidence that the applicant is in good physical and mental

health and able to undertake the responsibilities of parenthood;

and

        &lt;bullet&gt; a home visit

     Many of these requirements are set forth in Pa. Code   3350.12  To

the best of my knowledge, these requirements were in effect in 1997 and

have not changed since that time. Also, as noted above, our Social

Worker obtained from Families Through International Adoption its

requirements for a home study, which include those set forth above. 

    Furthermore, DPW conducts annual on-site audits of our adoption

files.  As part of its review, the DPW representative conducting the audit

actually reads many, if not all of the home studies prepared during the

previous year and informs our Social Worker of any omissions from or

deficiencies in the home studies reviewed.  The annual audit is required

for renewal of Family Adoption Center's license.  Following the audit,

DPW may place conditions upon license renewal if it discerns deviations

from state requirements.  Family Adoption Center's license has always

been renewed unconditionally.  To the best of our knowledge, the

Mancuso home study was made available to DPW during its annual

audit, and DPW did not make any comment regarding the home study

Description of Our Home Study Process

    As I have discussed above, all of Family Adoption Center's adoption

placements require home studies and post-placement visits.  On

occasion, we also conduct home studies and post-placement supervisory

visits in adoption placements not made through our agency as was the

case in Ms. Allen's adoption.  For example, in international and interstate

adoptions, adoptive parents are required to have home studies and submit

to post-placement visits. Also, some courts require home studies in

private, independent adoptions that do not involve adoption agencies.

    Typically, parents looking to adopt a child will contact our agency

after they have started the adoption process to request that we prepare the

home study.  At times the parents are referred by their adoption agency,

other times parents find us on their own, and on occasion, the attorney

for the adoptive parents contacts us.  After a prospective adoptive parent

requests a home study, an adoption caseworker performs the study. 

These individuals are social workers licensed by the state.   The case

worker will conduct the interview and fulfill all of the requirements

listed above, as provided by law, and then will make a recommendation. 

Proof of completion of a home study and the attendant recommendation

are required in every interstate and in most international adoptions before

an adoption can proceed.

    Family Adoption Center charges a fee to prepare the home study and

conduct post-placement visits.  Adoptive parents pay our fee when they

submit their application for the home study, and the payment is made

before the home study is completed.  Thus, payment of the fee is not

contingent upon a favorable recommendation.

Specifics of Mancuso Home Study

    In the case of Matthew Mancuso, the procedure outlined above was

followed.  To the best of our knowledge, the requirements regarding

home studies were the same then as they are now.  As I stated, Mancuso

contacted Family Adoption Center and requested that we perform a home

study.  We could not turn him down because he was a single man; as I

will discuss shortly, Pennsylvania law provides that any individual may

be an adoptive parent. 

    Our Social Worker sent Mancuso an application, which he

completed.  He stated in his application that he had extensively

researched adoption through internet web-sites and news groups and had

talked with friends who adopted.  He explained in his application that he

collected information from different agencies. 

    Mancuso completed the application, provided a lengthy

autobiography, provided financial information evidencing his ability to

support a child, provided criminal and child abuse clearances showing

that he had no criminal charges or convictions, and gave us credible

letters of reference.

    As I have stated, after our Social Worker received his application,

she called Families Through International Adoption and received

confirmation that he was a client of that agency and that he could adopt

as a single parent through them.  Our Social Worker then conducted two

intensive interviews with Mancuso, one at our offices and the other at his

home.  She saw that he had a bedroom that he designated for a child, and

was not concerned that it was not furnished for the child.  Experienced

adoption professionals will tell you that adoptive parents frequently do

not get a room ready until an adoption placement is about to occur.  It

can be extremely painful for an adoptive parent to have a vacant room

furnished with children's furniture awaiting an adoption placement that

may or may not transpire.  Most importantly, Mancuso had a bedroom

available for the child and stated that it would be furnished with

appropriate furnishings for a young girl.

    Now let's address the fact that Mancuso, a single man, wanted to

adopt a young girl.  It should be noted that we did not make the

determination that he was eligible to do so; that was made by the agency

that placed Masha Allen with him for adoption.  Nonetheless, we

recommended him for an adoption knowing that he wanted to adopt a

girl.  Why did we do so?  His almost six page, single spaced

autobiography gives compelling reasons for his desire to adopt a girl. 

Mancuso explained that he had a daughter, from whom he grew distant

through his divorce and as she grew up and wanted to spend more time

with her friends.  He described a close, but not abnormally close,

relationship with his daughter prior to and even after the divorce, until

she was in high school and chose to spend more time with her friends. 

Mancuso discussed the void that he felt in not maintaining a close

relationship with his daughter.  It seemed as though he wanted a second

chance at parenting a daughter, and from all outward appearances, he

was well suited to do so.  Additionally, the Pennsylvania Adoption Code

states that "any individual may become an adopting parent."  23

Pa.C.S.A.   2312.  Thus, the Pennsylvania law that regulates our agency

placed no restriction on Mancuso's ability to adopt a girl.

    You may ask why we did not contact his daughter and ex-wife.  It is

not our practice to contact ex-spouses and adult children not residing

with the adoptive parent, and the Pennsylvania adoption agencies with

whom we are familiar do not do so either.  In fact,  such contacts would

violate our obligations of confidentiality to prospective adoptive parents. 

Many divorced people adopt after their divorces have occurred.  Many of

them have children from prior marriages or relationships.  If those

children reside with the prospective adoptive parents, they become part

of the home study process.  If they are adults residing with the

prospective adoptive parents, they must provide criminal and child abuse

clearances.  If adoption agencies conducting home studies are to contact

ex-spouses and adult children, this requirement should be clearly stated,

since it is a substantial change from existing practices.

    Additionally, we had three letters of reference from non-relatives of

Mancuso, one from a married couple and two from individuals, attesting

to his ability to parent a child.  Those references appeared to be

legitimate.  We recently verified that the individuals who signed these

letters do exist.  We did not contact them when we received the letters of

reference for several reasons.  First, it was neither our practice, nor

common practice in the adoption field, at least in Western Pennsylvania,

where we are located, to contact authors letters of reference unless the

letters themselves indicated concerns.  Second, there was no requirement

that we contact references.  Third, DPW, our licensing agency, was on

notice that we did not contact references, and never told us that we were

remiss in not doing so.  Finally, the letter of reference requirement was a

requirement of Families Through International Adoption, Mancuso's

adoption agency.  In other international adoptions for which we have

performed home studies, we have been advised that the placing agency

contacted the authors of letters of reference to confirm their contents. 

    Now we know that Matthew Mancuso had ulterior motives in his

adoption.  He used our agency to accomplish his malevolent objectives. 

We feel terrible that we aided him, albeit unwittingly, in any way. 

However, we firmly believe that our home study was conducted in

accordance with all applicable requirements and standards and that there

were no red flags to indicate this man's true intentions.

Post-Placement Visits

    Normally, when Family Adoption Center prepares a home study for

an adoption placement from another agency or in an independent

adoption, after the adoption placement has been made, we perform post-

placement supervisory visits and prepare post-placement reports.  In fact,

we agreed to do so for Mancuso's adoption.  However, what triggers our

obligation to perform these visits is some communication from either the

adoptive parents or the placing agency to inform us of the placement. 

Without that communication, we have no way of knowing whether an

adoption placement has occurred.  In this case, neither Mancuso nor

Families Through International Adoption contacted us to apprise us of

the placement or request that we perform post-placement visits.

    I want to emphasize that it is extremely unusual for us not to be

notified of an adoption placement by either the placing agency or the

adoptive parents.  We are aware that Russian law requires post-

placement supervisory reports to be completed at 6, 12, 24, and 36

months after the adoptive parent returns home with the child.  Families

Through International Adoption's web-site states that these reports are to

be prepared "by the home study agency that prepared the original home

study."  Since no one informed us of the adoption placement, we could

not fulfill our commitment to perform these visits and prepare the

required reports.

    You may ask why we did not periodically call Mancuso and inquire

as to the status of his adoption plans.  I am not aware of any adoption

agency that does so.  In fact, given how upsetting the waiting period can

be for adoptive parents, the fact that international adoptions can take one

to two years before a placement occurs, and that not all prospective

adoptive parents actually go through with an adoption, agencies do not

routinely check up on the progress of adoptive parents for whom they

have performed home studies.  It is unlikely that Mancuso, given his

deceptions, would have been honest with us anyway, but we expect when

we complete a home study and commit to performing post-placement

reports that the placing agency and/or adoptive parents will contact us as

they are required to do so that we can complete our piece of the adoption.

    If we had conducted post-placement visits, we certainly would have

expected to see a bedroom furnished for a young girl.  A child of five or

six years of age would be asked to show the social worker where he or

she slept.  Whether in this case we would have received honest answers

again is speculative.

    I want to note that in January, 1998, the Social Worker who

performed the Mancuso home study was let go.  The reason for her

discharge did not relate to her job performance in conducting home

studies and post-placement visits.  Rather, we had conducted an

assessment of changes that we believed were warranted in our adoption

program and made a business decision to find new leadership. 

    This evaluation occurred because, in the late 1990's Family

Adoption Center had experienced a significant decline in its infant

placements.  In its early years, we were the only agency in the Pittsburgh

area offering direct infant placement to adoptive parents without using

foster care.  By the mid-1990's, most local agencies offered this option. 

Our program attempted various outreach efforts to improve our

recruitment processes, without success.  In the first thirteen years of

operations, through the fiscal year ending June 30, 1995, we placed an

average of twelve infants per year.  In the next two fiscal years, ending

June 1996 and June 1997, our placements dropped to 5 and 3, and in the

six months ending December 31, 1997 we only had 2 placements.  We

had serious concerns about our program's marketing and recruitment

efforts, and made the difficult decision to make a staffing change.  We

did not have concerns about our Social Worker's proficiency and quality

of work in her social worker role, but we were concerned with our low

number of placements, and our program's inability to accommodate the

needs of birthmothers whose infants were not a potential match for the

preferences of our clients wishing to adopt.

    However, we had a new social worker in place immediately in

January, 1998.  Our program did not miss a beat.  That new social

worker took over the files of the previous social worker.  If Family

Adoption Center had been notified of Ms. Allen's adoption by Mancuso,

she would have been ready, willing and able to conduct the post-

placement visits.

Conclusion

    In conclusion, please know that Adagio Health deplores what

occurred here.  We want to make sure that this kind of tragedy will never

happen again.  We fully support the Committee's investigation and will

assist in any way that we can. The system is undoubtedly complicated

due to the different countries and states involved, but nonetheless, every

effort should be made to ensure that every adopted child is placed in a

safe and loving home.  Thank you so much for your time, and I welcome

any questions you may have.

    MR. WHITFIELD.  Thank you.  Ms. Smith, you are recognized for 5

minutes.

    MS. SMITH.  Thank you.  Good afternoon, Chairman Whitfield,

Ranking Member Stupak, and distinguished members of the

subcommittee.  My name is Jeannene Smith and I am the founder of

Reaching Out Thru International Adoption.  I appreciate this opportunity

to share what I understand to have occurred in the adoption of Masha

Allen and discuss what I know about international adoption, both as it

was then and how it has changed since.

    My personal experience as an adoptive parent and the joy that it has

brought to our family instilled my desire to improve the future for other

children who, like them, have found love and security in a permanent

family.  As an international adoption advocate, it is my goal to help

orphaned children find permanent loving families who can nurture these

children and help them achieve their potential.  The adoption of Masha

Allen by someone who has been proven to be a pedophile represents the

most unimaginable breach of social conscience.  More disheartening is

that his admittedly criminal enterprise continued for over 6 years.

    The fact that he was able to perpetrate this fraud upon all sectors of

our society demonstrates the need for additional safeguards for the most

vulnerable members of our society.  It is also true that since Masha's

case, many changes in procedures have occurred which address these

issues.  However, it is legally difficult, if not impossible, to gain

compliance for post-adoption supervision from an adoptive family after

they return home with a full and final adoption order from a foreign

country.  Current laws do not exist that require and provide enforcement

mechanisms for post-adoption supervision for inter-country adoption.

    While I cannot unequivocally state that post-placement supervision

would have detected the nature of abuse in this case, while every other

professional in this child's life did not, not her doctors, dentists, teachers,

and others; I continue to believe that the lack of post-adoption reporting

tools are a critical gap in the process and leaves the children placed

through inter-country adoption with no protection upon placement.  It is

the smallest voices that deserve every protection we can offer them.

    On a final note, I want to add that the adoption process is a human

process and that those human judgments, even by professionals, will

always be a necessary part of the process.  I continue to believe in the

mission and purpose of international adoption and in laws that give

children opportunities to achieve their personal potential as human

beings.  Thank you.

    [The prepared statement of Jeannene Smith follows:]

PREPARED STATEMENT OF JEANNENE SMITH, FOUNDER, REACHING OUT

THRU INTERNATIONAL ADOPTION

&lt;GRAPHICS NOT AVAILABLE IN TIFF FORMAT&gt;

    MR. WHITFIELD.  Ms. Eiferman, you are recognized for 5 minutes.

    MS. EIFERMAN.  Chairman Whitfield, Ranking Member Stupak, and

distinguished members of the subcommittee, good afternoon.  My name

is Carol M. Eiferman.  I received both my bachelor's degree and master's

degree in social work from Rutgers University.  I received my BSW in

1983 and my MSW in 1989.  I became a licensed clinical social worker

in 1991.  I am licensed to practice only in the State of New Jersey.

    Prior to receiving my graduate degree, I worked in the field of

alcohol and drug abuse, counseling both youth and adults between 1978

and 1981.  From 1983 to 2000, I worked in three different medical

systems.  I held a number of positions, including medical social worker,

director of a social services department and social worker in a

specialized psychiatric and addictions unit of a hospital.

    My involvement in the field of international adoption grew out of the

fact that my husband and I were fortunate enough to internationally

adopt both of our children in 1994 and 1997.  As part of that process, I

was a co-founder of a parent support group for international adoption.  In

the spring of 1999, I began practicing social work as an independent

contractor with Reaching Out Thru International Adoption, Inc.  My

duties were to perform international home studies for residents of New

Jersey who wished to adopt.  In early November 2000, I became an

employee of Reaching Out.  My job title was casework supervisor.  I

remain in this position today.

    I would be happy to answer any questions the subcommittee may

have.

    [Testimony of Carol Eiferman follows:]

PREPARED STATEMENT OF CAROL EIFERMAN, SOCIAL WORK

SUPERVISOR, REACHING OUT THRU INTERNATIONAL ADOPTION

&lt;GRAPHICS NOT AVAILABLE IN TIFF FORMAT&gt;

    MR. WHITFIELD.  Ms. Seamans-Conn, you are recognized for 5

minutes.

    MS. SEAMANS-CONN.  Good afternoon.  My name is Marlene

Seamans-Conn.  I was employed as the Executive Director of Reaching

Out Thru International Adoption from July 1999 through of 2001.  In

that position, I didn't have any contact with Mr. Mancuso.  I was not

aware of his adoption as part of my position there.  I was aware that there

was a post-placement report completed and I actually believe I saw that

report and possibly even filed that in his adoption.  I never had contact

with Mr. Mancuso.  I would be happy to answer any questions that the

committee has.

    MR. WHITFIELD.  Mrs. Druger, you are recognized for 5 minutes.

    MS. DRUGER.  My name is Hannah Druger.  I just wanted to make

one correction.  When I worked for the agency, I was not a social

worker.  I have a background in human services, but I was not a social

worker.  Currently, I am a certified social worker, so in light of the

situation, I do want to make that clear.  I initially worked with Jeannene

when she was still--I don't know what relationship she had with FTIA

exactly, but I walked into that situation and I assisted her.

    I started out as a volunteer and then I started part-time and mostly

in a clerical capacity.  What we are going to hear today is extremely,

extremely important.  I, myself, would like to hear all the facts.  I didn't

have enough time to really prepare a long statement because I was only

issued this request a couple of days ago, but if there are any questions, I

am more than happy to answer anything I can.   

    MR. WHITFIELD.  Okay, thank you very much.  We appreciate your

testimony.  Mr. Wallace, in your testimony, one of the things you

mentioned was that Ms. Smith was an independent contractor for you for

a period of time and then I believe that you sent her a letter of

termination in 1998, maybe February of 1998, is that correct?

    MR. WALLACE.  Yes, sir.

    MR. WHITFIELD.  Okay.  Now, Ms. Smith, you received a letter of

termination from Mr. Wallace in February 1998?

    MS. SMITH.  I received a letter from Mr. Wallace.  I am unsure of the

exact date.

    MR. WHITFIELD.  Okay.  But you understood that you were

terminated from being a contractor for him?

    MS. SMITH.  I received a letter saying he was closing the office.

    MR. WHITFIELD.  Okay.  Now, are you a licensed social worker?

    MS. SMITH.  No.

    MR. WHITFIELD.  Okay.  Is it required that you be a licensed social

worker in the State of New Jersey to have an adoption agency or to

operate an adoption agency?

    MS. SMITH.  No.

    MR. WHITFIELD.  What is the legal requirements in the State of New

Jersey to operate an adoption agency?

    MS. SMITH.  You must have a licensed social worker on staff.

    MR. WHITFIELD.  Yes.

    MS. SMITH.  And an executive director with certain credentials, as

well.

    MR. WHITFIELD.  Yes.  And when did you receive your license to

operate as an adoption agency?

    MS. SMITH.  The physical paper license came in June.  We received

notification that we were approved somewhere the end of April or May.

    MR. WHITFIELD.  Of what year?

    MS. SMITH.  I am sorry, 1998.  1998, yes.

    MR. WHITFIELD.  All right.  So you were licensed in April or May of

1998?

    MS. SMITH.  We received verbal that everything was approved and

we would be receiving our paper license shortly.

    MR. WHITFIELD.  And when did you--

    MS. SMITH.  We got that in June.

    MR. WHITFIELD.  You got that in June.

    MS. SMITH.  Yes.

    MR. WHITFIELD.  And you were terminated in February.

    MS. SMITH.  Yes.

    MR. WHITFIELD.  So for a period of time there you were operating

without a license?

    MS. SMITH.  We submitted our documentation for licensure in

February, as well.

    MR. WHITFIELD.  How did you meet Mr. Mancuso?

    MS. SMITH.  I don't believe I have ever met him.

    MR. WHITFIELD.  Well, all of the paperwork was submitted through

your office initially and then I think it went to Mr. Wallace's company. 

How did you ever come in contact with him?

    MS. SMITH.  The file indicated that he contacted our office when we

were a branch of FTIA and that he had heard about this through the

Internet on AOL.

    MR. WHITFIELD.  So did he contact you or did he contact the

Evansville office?

    MS. SMITH.  No, he contacted the Cherry Hill office and requested

information.

    MR. WHITFIELD.  He contacted you?

    MS. SMITH.  Yes.  My office, yes.

    MR. WHITFIELD.  How many people worked in the office?

    MS. SMITH.  At the time it was just myself and Hannah.

    MR. WHITFIELD.  All right, so he contacted your office, so he must

have talked to you.

    MS. SMITH.  I don't know that.  I would assume that.

    MR. WHITFIELD.  Now, I understood you to say that you were the

only person working in the Cherrydale office, is that correct?

    MS. SMITH.  No, myself and Hannah were working there at the time.

    MR. WHITFIELD.  Ms. Druger, you worked there with her.  Did you

talk to Mr. Mancuso?

    MS. DRUGER.  Generally, I think the way it happened was a list came

out as to people that were requesting information packets and we would

mail information packets to those interested parties.  I don't remember

speaking to him in person.

    MR. WHITFIELD.  Well, where did the list come from?

    MS. DRUGER.  I think we were posted on Rainbow Kids.  I think

there were a couple of Internet sites that the agency was listed under.

    MR. WHITFIELD.  That your agency was listed under?

    MS. DRUGER.  I believe.  I am not sure.

    MR. WHITFIELD.  So are you saying that--

    MS. DRUGER.  I don't know the relationship between FTIA and

Jeannene's office.

    MR. WHITFIELD.  Did the information ever come to you directly

from Mr. Mancuso?

    MR. WALLACE.  No, sir.  Part of the controversy I spoke of was it

was not until we had worked together quite a while that I found out that

FTIA was listed on several adoption websites with the New Jersey

address.  That goes to the misrepresentation of the relationship.  People

did not know FTIA was an Indiana-licensed agency.

    MR. WHITFIELD.  You were not licensed to do business in New

Jersey?

    MR. WALLACE.  No, nor had I authorized Ms. Smith to go on sites

and post our name and a New Jersey address.

    MR. WHITFIELD.  And did Ms. Smith do that?

    MR. WALLACE.  Yes.

    MR. WHITFIELD.  Is that correct, Ms. Smith?  Did you do that?

    MS. SMITH.  It is correct that I did that, but everything that was done

was with Mr. Wallace's authorization.  Every bit of literature, every bit

of information that was disseminated.

    MR. WHITFIELD.  Let me ask you a question.  Briefly, just explain

the process.  I specifically want to get to these post-placement home

studies and when a child is placed, and you were the only one involved

when the child was placed.  I mean, Mr. Wallace, at that point, was out

of it.  The $2,500 or so, I think, was paid to you by Mr. Mancuso, the

final payment.  Well, there is a payment of $400, a payment of $2,500

and then a payment of $1,800 that was paid to you.  Did you notify any

appropriate authorities in Pennsylvania that the child had been placed

with Mr. Mancuso?

    MS. SMITH.  I don't have direct knowledge of that.

    MR. WHITFIELD.  Was there anyone that works for you or was

working for you at the time that has a knowledge of that?  You don't

have any knowledge of it, so I am taking it to mean you did not notify

anyone.  Did any of the others that worked for her notify anyone, that the

child had been placed?

    MS. SEAMANS-CONN.  I wasn't employed at the time.

    MR. WHITFIELD.  Okay.

    MS. DRUGER.  I don't remember notifying anybody.

    MR. WHITFIELD.  Okay.  Now, isn't it a legal responsibility to notify

appropriate agencies when a child has been placed?

    MS. SMITH.  That is our standard of practice.

    MR. WHITFIELD.  So you violated your standard of practice?

    MS. SMITH.  Again, I was not the caseworker on this, so I--

    MR. WHITFIELD.  Well, you owned the company, didn't you?  Didn't

you own the company?

    MS. SMITH.  I am the founder of Reaching Out.

    MR. WHITFIELD.  And the check was paid to you?  $1,800?

    MS. SMITH.  That is correct.

    MR. WHITFIELD.  And so basically, what you are saying is you don't

know or you don't recall, and I am taking that to mean that you all did

not do it?

    MS. SMITH.  I don't know that it was done.

    MR. WHITFIELD.  Did you have an obligation to--well, Mr. Baird,

you have testified that you were not notified, didn't you?

    MR. BAIRD.  That is correct.  We were not notified.

    MR. WHITFIELD.  So you did the initial home study and you were

never notified that the child was placed there.

    MR. BAIRD.  That is correct.

    MR. WHITFIELD.  Now, if you had been notified, what is the

significance of that?  What would that mean, from your perspective?

    MR. BAIRD.  Had we been notified, we would have scheduled to do

the post-placement visits, supervisor visits for--

    MR. WHITFIELD.  And under Pennsylvania law, how many visits

would that have been?

    MR. BAIRD.  Well, under Pennsylvania--well, this would be the part

under Russian law.

    MR. WHITFIELD.  Okay.

    MR. BAIRD.  I think it is--

    MR. WHITFIELD.  Three?

    MR. BAIRD.  It is 3 years of visits and I think there are four visits. 

Three months, 6 months, 1 year, and 2 years.

    MR. WHITFIELD.  Okay, so you didn't do any of that?

    MR. BAIRD.  That is correct.

    MR. WHITFIELD.  Because you didn't know about it.

    MR. BAIRD.  That is correct.

    MR. WHITFIELD.  Okay.  Now, it is my understanding that Social

Services of Western Pennsylvania, on March 23rd, 1999 prepared a post-

placement report on Masha and sent it to Families Thru International

Adoption in Cherry Hill, New Jersey and from what we have been able

to find out, this is totally fake.  There is no Social Services of Western

Pennsylvania.  The phone number didn't work.  It has never been in

existence and so can anyone tell me, does anyone know Frances White? 

Ms. Smith, have you ever seen this document?

    MS. SMITH.  I have seen the document.

    MR. WHITFIELD.  How did you get it, the document?

    MS. SMITH.  It was something that was submitted.  It was sent to our

office.

    MR. WHITFIELD.  And who sent it to you?

    MS. SMITH.  I don't know.

    MR. WHITFIELD.  You don't know who sent it to you?

    MS. SMITH.  I don't, no.  I have seen the document.

    MR. WHITFIELD.  Did you understand that under Russian law there

were three post-placement studies that were supposed to be conducted?

    MS. SMITH.  Yes.

    MR. WHITFIELD.  And did you conduct any or did you notify anyone

to conduct any of these studies?

    MS. SMITH.  I have seen documents in the file that notified Mr.

Mancuso of the schedule of post-placement that was due.  At that time, it

is typically standard that a copy of that goes to the home study agency, as

well.  Again, I can't answer as to exactly what occurred.  I was not the

case worker.

    MR. WHITFIELD.  So Mr. Dymtchenko, you were involved in this

and I think Mr. Mancuso paid you over $4,000 for his expenses related to

the Russian government adoption process.  Did you receive any post-

placement reports from Ms. Smith on Masha Allen?

    MR. DYMTCHENKO.  Yes, I did.

    MR. WHITFIELD.  How many?

    MR. DYMTCHENKO.  Two.

    MR. WHITFIELD.  And do you have copies?

    MR. DYMTCHENKO.  One that you just showed and the other one was

on the letterhead of Reaching Out Thru International Adoption.

    MR. WHITFIELD.  Now--okay, let me just--

    MR. DYMTCHENKO.  Translate them both and submitted to Russian

authorities.

    MR. WHITFIELD.  Okay.  Now, my time is running out, but Mrs.

Seamans-Conn, I understand that you have some knowledge of this post-

placement report from Reaching Out and that this was conducted by

telephone, is that correct?

    MS. SEAMANS-CONN.  Yes, I was employed at the time that that

post-placement was conducted and I recall that that was conducted by

telephone by Ms. Eiferman.

    MR. WHITFIELD.  And that is not the way these are supposed to be

conducted, is it?

    MS. SEAMANS-CONN.  Traditionally, that is not the way that it--

    MR. WHITFIELD.  You are supposed to have an in-home site visit, is

that correct?

    MS. SEAMANS-CONN.  Usually it is the same agency that conducts

the home study, but not always, but it should be a licensed--

    MR. WHITFIELD.  But who did this telephone report?

    MS. SEAMANS-CONN.  I believe that was Carol Eiferman.

    MR. WHITFIELD.  Ms. Eiferman, is that true?  Did you do this by

phone?

    MS. EIFERMAN.  I conducted a follow-up telephone call to Mr.

Mancuso at the direction of Ms. Seamans-Conn, who was our Executive

Director at that time.

    MR. WHITFIELD.  So according to your testimony and the testimony

of others who are involved in international adoptions, it is the accepted

practice that it is an in-home visit, not a telephone call?  Do you

recognize that?

    MS. EIFERMAN.  At the time, of course, best practice is to see

children in the home.  It was considered acceptable practice.  If you

needed to conduct a telephone interview to glean the information, if

families were reluctant.

    MR. WHITFIELD.  Yes.

    MS. EIFERMAN.  There are even very rare cases of agencies using

self reports.  A form is mailed to the family, the family--

    MR. WHITFIELD.  Mr. Wallace, do you agree with that?

    MR. WALLACE.  I would not think it would be acceptable best

practices to complete what we call a post-placement over the phone.

    MR. WHITFIELD.  What about you, Mr. Baird?

    MR. BAIRD.  I don't agree with that.  Pennsylvania regulations

require that post-placement supervisory visits be conducted by a social

worker in the home.

    MR. WHITFIELD.  Okay.  Mr. Stupak, you are recognized for 10

minutes.

    MR. STUPAK.  Thank you, Mr. Chairman.  Mr. Baird, you indicated

in your statement that your agency determined that Mr. Mancuso was

eligible to adopt?

    MR. BAIRD.  Yes.

    MR. STUPAK.  What did that mean?

    MR. BAIRD.  Our social worker contacted--well, would you repeat

the question?

    MR. STUPAK.  Sure.  What does eligible to adopt mean?

    MR. BAIRD.  Are you talking about the conclusion of the home study

or the call that she placed to the New Jersey agency?

    MR. STUPAK.  Well, let me--your agency made the determination, so

what went in to make that determination initially to adopt?

    MR. BAIRD.  Right.  He contacted us and said he was working with a

New Jersey agency.  After he submitted his application package to us,

our social worker contacted the New Jersey agency and spoke to

Jeannene Smith and got her verification that he was eligible to adopt

through them.

    MR. STUPAK.  Okay, to be eligible, is it just merely filling out some

paperwork or do you do--

    MR. BAIRD.  The question she presented to the New Jersey agency

was is he eligible, as a single man, to adopt and she got the answer back,

yes, he was.

    MR. STUPAK.  Okay.  Now, that--

    MR. BAIRD.  Of course then we went and did the home study and

came up with a favorable recommendation after reviewing all the

information.

    MR. STUPAK.  So you did do a home study in this case?

    MR. BAIRD.  Yes, we did.

    MR. STUPAK.  Did anyone ever contact the ex-wife or the daughter?

    MR. BAIRD.  No.

    MR. STUPAK.  Is it common that single--did your agency, at any

time, look into or probe into why a 41-year old man, divorced man,

would want to--who already had a biological daughter and you know, by

looks of things, had some income and was capable of having more

children with a second wife, but chose just, instead, to adopt a child, a 5-

year-old child?

    MR. BAIRD.  Well, I think the home study addressed that.  He

provided an autobiography that gave several reasons why he wanted to

adopt.  He missed having a child.  He had been divorced for 11 years. 

He enjoyed parenting.

    MR. STUPAK.  Well, autobiography, that is his own words, isn't it?

    MR. BAIRD.  Well, she interviewed him, also, and verified and

probed and verified that that seemed to be his coherent story of why he

wanted to adopt.

    MR. STUPAK.  And you don't think that is unusual?

    MR. BAIRD.  I can't comment on that.  All I know is that there are

currently over two million single men parenting children in the United

States.  I don't know how many are adoptive parents, but it is not unusual

for a single man to be a parent.

    MR. STUPAK.  Well, but in reading this report that your agency

submitted, if a person who wants to adopt, prospective adoptive father

tells you he is not able to maintain a meaningful relationship with his

teenage daughter who lived nearby, doesn't that sort of make you

wonder?

    MR. BAIRD.  Not necessarily.  He did provide reasons that she had

become more active with her friends and she was very busy in her own

life and that their visits had become less frequent and that he did not have

an ongoing relationship with her, but he made it sound like it was a

normal developmental thing.  He did not say he was estranged from her

or vice-versa.  Nothing in his write-up about it or his responses, that I can

tell, became a red flag.

    MR. STUPAK.  If that is normal, won't that same thing happen then

after he adopted, once that child became a teenager, won't that child

want to spend more time with friends and not necessarily with Mr.

Mancuso?

    MR. BAIRD.  Well, he had gone through a divorce and it is possible

that he, the estrangement from his wife had factored in.

    MR. STUPAK.  But he never really said that, did he?

    MR. BAIRD.  No, he didn't.

    MR. STUPAK.  So I guess I am really wondering why you didn't talk

to the wife and the--

    MR. BAIRD.  He did say he and his wife had moved apart.  They

parted their ways.

    MR. STUPAK.  Oh, sure.  Those are his self-serving statements, but

no one ever checked in with the ex-wife or the child, that was all.  I just

thought it was strange, that is all.  Let me go to Ms. Smith.  You have a

book, I believe, there in front of you, there?  Now, there is a document

book there.  I want you to look at this document that we have.  One

minute, here.  I have it here, but I don't have it in the book.  Number 2,

please.  Now, this is a form that Mr. Wallace's had or was this your

form, your agency's form?

    MS. SMITH.  That was a form we used in our office in Cherry Hill.

    MR. STUPAK.  Okay.  It is 1997, so this would be Mr. Wallace's

form?

    MS. SMITH.  I am sorry?

    MR. STUPAK.  It says on top 8/4/1997.  Would this be Mr. Wallace's

form?

    MS. SMITH.  No, that was a form we used in Cherry Hill.

    MR. STUPAK.  Okay.  While you were an employee of Mr. Wallace?

    MS. SMITH.  Yes.

    MR. STUPAK.  Okay.  Whose handwriting at the top here, where it

says family name, whose handwriting is that?

    MS. SMITH.  That would be mine.

    MR. STUPAK.  Okay.  So how did you interview Mr. Mancuso?  By

phone or in person?

    MS. SMITH.  Under the source, it is listed as AOL, so it appears that

this was an information request that came in through the Internet.

    MR. STUPAK.  Okay.  Where it says notes here, prefer female, 4 to 5

years old.  Whose handwriting is that?

    MS. SMITH.  That is mine.

    MR. STUPAK.  Okay.  Underneath that, 12/23/97, received dossier. 

Whose is that?

    MS. SMITH.  Hannah Druger.

    MS. DRUGER.  Mine.

    MR. STUPAK.  Ms. Druger?  Okay.  And then you called him to let

him know that he had to do certain things, right?

    MS. DRUGER.  These things were not included.

    MR. STUPAK.  I am sorry, what?

    MS. DRUGER.  Not included.  Power of attorneys--

    MR. STUPAK.  Right.

    MS. DRUGER.  We need a separate agency licensed--

    MR. STUPAK.  Okay.  And then there is a 12/24/97.  Whose

handwriting would that be?  Would that be yours again, Ms. Druger?

    MS. DRUGER.  Yes.

    MR. STUPAK.  Okay.  And then, if we go on the next page, second

page here, in the lower right-hand corner, never cashed, signature torn

off, per Mr. Mancuso request.  He then reissued check to FTIA

coordinator.  Whose writing is that?

    MS. DRUGER.  That is mine.

    MR. STUPAK.  That is yours.  How about the agency fees in the upper

right-hand corner, page two.  Whose writing is that?

    MS. DRUGER.  On the upper right-hand corner is mine.

    MR. STUPAK.  Where it says agency fees?  Okay.  So agency fees

here now, just so I make sure I have this right, this would be your

agency, right, Ms. Smith?

    MS. SMITH.  At the time, they were fees that were received through

Families Thru International Adoption.  The top fees and that form was

initiated at the time as FTIA.

    MR. STUPAK.  Okay.  So when did he become your agent?  I am

sorry, your client?

    MS. SMITH.  I don't really know.

    MR. STUPAK.  Well, you agree you were terminated in February of

1998 with Mr. Wallace's company?

    MS. SMITH.  Yes, that is correct.

    MR. STUPAK.  So anything after February of 1998, he would be your

client then, right?

    MS. SMITH.  No.  When families switch to our agency, they signed a

form indicating they wished to switch and they would fill out Reaching

Out contracts.

    MR. STUPAK.  Okay.  How about going to Exhibit Number 8 for me,

then?

    MS. SMITH.  I am sorry?

    MR. STUPAK.  Exhibit Number 8, please.

    MS. SMITH.  Eight.

    MR. STUPAK.  Eight.  Okay, did you have a chance to review that? 

And that is dated April 21st, 1998 and in there specifically, you talk about

Mr. Mancuso to Mr. Wallace and you say therefore, the entire fee, which

was remitted to your office in the amount of $2,050 is due at this time. 

Mr. Mancuso has received his referral and will be traveling soon.  And

Mancuso has decided to remain with our office and Russia program. 

And that is on the letterhead of Reaching Out Thru International

Adoption, so April 21st, 1998, as far as you were concerned, he was your

client, right?  Mr. Mancuso.

    MS. SMITH.  I am looking at this document, but I don't recall this.

    MR. STUPAK.  Mr. Wallace, could you take a look at that document? 

It is in Tab Number 8.  It would be in the white books there.  There are a

couple of them there.

    MR. WALLACE.  Yes.

    MR. STUPAK.  Okay.  Do you remember receiving that at all?  That

document, Number 8?

    MR. WALLACE.  I don't recall the day I received it.

    MR. STUPAK.  What is your understanding of that document?

    MR. WALLACE.  I keep that in my file.

    MR. STUPAK.  It came out of your file?

    MR. WALLACE.  Yes.

    MR. STUPAK.  Okay.

    MR. WALLACE.  And I have the copy that was sent with the fax

confirmation on it that prints out with the fax.

    MR. STUPAK.  Okay.

    MR. WALLACE.  So it has the date and so forth.

    MR. STUPAK.  So is it fair to say that after April 21st, 1998 Mr.

Mancuso was no longer your client?

    MR. WALLACE.  Yes, and I would actually say before that, but yes,

by that time, without question, it is black and white that she is saying that

he is completing his adoption through her.

    MR. STUPAK.  Okay.  Ms. Smith, how about Tab Number 9?  Would

you take a look at that, please?  It is on Reaching Out Thru International

Adoption, Inc. stationery.

    MS. SMITH.  Yes.

    MR. STUPAK.  And it says acknowledgement and agreement?

    MS. SMITH.  Yes.

    MR. STUPAK.  Now, is that from Mr. Mancuso with your agency?

    MS. SMITH.  Yes.

    MR. STUPAK.  And he has paid you a fee in the amount of $1,800?

    MS. SMITH.  Yes.

    MR. STUPAK.  And parent's signature, would that Mr. Mancuso?

    MS. SMITH.  I have no way of knowing that.

    MR. STUPAK.  Okay.  Do you have any reason to dispute the day of

May 1st, 1998?

    MS. SMITH.  No, not that I would have a reason to.

    MR. STUPAK.  Okay.  Mr. Chairman, hopefully we will be having

another round of questions.

    MR. WHITFIELD.  We will.

    MR. STUPAK.  Thank you.

    MR. WHITFIELD.  And at this time I recognize Mr. Ferguson of New

Jersey.

    MR. FERGUSON.  Thank you, Mr. Chairman.  I actually want to pick

right up where Mr. Stupak left off.  Ms. Smith, let me ask you a simple

question first.  This is an easy yes or no.  Were you and your agency the

adoption agency responsible for the adoption of Masha?  Yes or no?  It is

real easy.

    MS. SMITH.  I think we all were.

    MR. FERGUSON.  That is a remarkable answer.  I think that would

probably catch a lot of people by surprise.  I think perhaps some of us in

this room were more responsible than others.  Is the answer to that--

legally, were you the responsible adoption agency for this adoption?  Did

you place her with Mr. Mancuso?

    MS. SMITH.  I think we had a role in it, yes.  I don't know who,

ultimately.

    MR. FERGUSON.  Okay, well then let us get into that, then.  We have-

-you know, we had Tab 8, which Mr. Stupak just had us looking at,

talking about you requesting the money for it.  We have Tab 9 that Mr.

Stupak just had us looking at on your letterhead with his signature, as

further documentation.  Also in Tab 9, we have an announcement with a

picture of little Masha.  "Reaching Out Thru International Adoption, Inc.

is happy to present to Matthew A. Mancuso," picture underneath. 

Masha.  And you told Mr. Wallace's organization that you had the

referral in the document.  Does that refresh your memory?  Were you

legally the adoption agency responsible for Masha's adoption, for her

placement?

    MS. SMITH.  I don't know, but I would like to explain that.

    MR. FERGUSON.  This is a real easy question.

    MS. SMITH.  It is not an easy question.

    MR. FERGUSON.  Well, I realize it is not an easy question for you,

but it has either, there is an answer that it is either yes or no, and the

preponderance of evidence here seems to suggest that you, at every turn,

and your organization, were responsible for placing her.  At this point,

you still will not acknowledge that?

    MS. SMITH.  No, I think that we definitely had a part in that and--

    MR. FERGUSON.  Then the answer is yes, is it not?

    MS. SMITH.  Yes.

    MR. FERGUSON.  Thank you.

    MS. SMITH.  But I would like to clarify that further, if I can.

    MR. FERGUSON.  Go ahead.

    MS. SMITH.  We were a part of FTIA.  We had no knowledge that

office was going to be shut down and there were a lot of families that

were caught in that.  When they were caught in that, families turned to us

for help and continued to turn to us for help for many months after that. 

We did the best that we could to get the families through that.

    MR. FERGUSON.  Why did you ask for your money back from Mr.

Wallace?

    MS. SMITH.  Did Mr. Wallace ever give that?

    MR. FERGUSON.  That is not the question I asked you.  I have asked

you a question.  Why did you ask for the money back?

    MS. SMITH.  I don't know.  I don't recall--

    MR. FERGUSON.  We are getting a lot of "I don't knows" and "I

don't remembers" and "I don't recall" and "I'm not sure" and "we are all

responsible" and we are not getting a lot of straight answers here.  Now,

you have known you were going to testify here.

    MS. SMITH.  I understand--

    MR. FERGUSON.  You have got a lot of documentation.  You don't

know why you requested the money back?

    MS. SMITH.  This is the first I have ever seen that document in this

whole investigation.

    MR. FERGUSON.  Your document?  This is a document on your

letterhead.

    MS. SMITH.  Yes.

    MR. FERGUSON.  But you have no knowledge of it?  You have no

idea?

    MS. SMITH.  Not of that document.

    MR. FERGUSON.  That is a pretty remarkable thing.  That is it.  That

is just--it is tough to believe.  It is tough to believe.  Let me go on.  Ms.

Smith, your organization, is this true, never notified any home study

agency that Mr. Mancuso had a child placed with him, is that true?

    MS. SMITH.  I don't know the answer to that.

    MR. FERGUSON.  Why don't you know the answer to that?

    MS. SMITH.  Because, as I said, our standard practice, when a client

comes home, a letter is sent that indicates the post-placement schedule

and the home study agency is typically notified at that time.  I am not the

case worker on that file.  I don't know what occurred.

    MR. FERGUSON.  That is a very lame answer.  To say I am not the

case worker, someone who runs an organization saying well, I am not

responsible for the things whether my employees do their job or not. 

You are absolutely responsible.

    MS. SMITH.  There is a letter in the file that indicates the post-

placement schedule and that letter did go out to Mr. Mancuso.  I do not

know if the home study agency was copied.  There is not a specific note

to that.  Again, I didn't perform the service.

    MR. FERGUSON.  Were you licensed in April and May of 1998 when

you said that Mancuso was your client?

    MS. SMITH.  No.

    MR. FERGUSON.  How do you explain that?  Why did you say he was

your client when you were not licensed to be doing what you were

doing?

    MS. SMITH.  We received notification that we were approved and

everything was in order.  We received our paper license in June.

    MR. FERGUSON.  That looks pretty bad at this point, doesn't it, after

a child's been abused and a man is in jail?  That is a pretty flimsy

explanation to say well, we had verbal approval, but we actually--I mean,

technically you weren't licensed.  You weren't licensed.  You were

collecting money.  You were representing to another organization that

this person was your client.  You said that you take responsibility for

placing this girl in this man's home and today we are hearing a lot of "I

don't remembers," "I am not sure," "Aren't we all really responsible for

this?"

    What is your understanding of what a post-placement report is?

    MS. SMITH.  Post-adoption supervision.

    MR. FERGUSON.  Yes.

    MS. SMITH.  Typically, when a social worker goes into the home and

meets with the adoptive family and verifies the child's placement and the

well-being of the child.

    MR. FERGUSON.  Did that happen here?  Did that happen here?

    MS. SMITH.  Not to my knowledge.

    MR. FERGUSON.  And you are the responsible placement agency, so

why didn't it happen?

    MS. SMITH.  Apparently, Mr. Mancuso did not comply.

    MR. FERGUSON.  Why not?

    MS. SMITH.  I don't know.  The file indicates that there were requests

made.  The file indicates than were attempts--

    MR. FERGUSON.  Mr. Wallace, what would happen if you were

trying to do a post-placement report and someone didn't comply?  You

referenced it in your opening statement.

    MR. WALLACE.  We send out several notices.  The person

responsible for the file, if they do not get the post-placement, brings it to

my attention.  I start calling, contacting, and take all appropriate action to

ensure that it is turned in and it sometimes takes a lot of time, but every

time I do it.

    MR. FERGUSON.  Ms. Smith, who is the case worker?  You said

several times I am not responsible, I don't know, I wasn't the case

worker on this particular case.  Who was the case worker?  Ms. Smith?

    MS. SMITH.  It looks like Hannah.

    MR. FERGUSON.  Hannah was the case worker?

    MS. SMITH.  Most of the case notes were signed by Hannah.

    MR. FERGUSON.  Okay.  Let us ask your employees, then.  Who ran

the show here?  Go ahead, you take a turn.

    MS. EIFERMAN.  Were you directing that at--

    MR. FERGUSON.  All three of you, each of you.

    MS. EIFERMAN.  In my experience as Executive Director, Jeannene

Smith really ran the agency on a day-to-day basis and on every level,

every function.

    MR. FERGUSON.  Hannah?

    MS. DRUGER.  I agree.

    MR. FERGUSON.  I am sorry?

    MS. DRUGER.  I agree.  I was involved when the agency became

licensed as an agency when she went through the licensing process with

Anna Montez, so you know, I guess you would say I was there.

    MR. FERGUSON.  Can you answer the question that I asked?

    MS. DRUGER.  About post-placements?

    MR. FERGUSON.  Yes.

    MS. DRUGER.  We definitely had definite guidelines for when those

were to take place, no question about that.  I don't recall about sending a

copy to the agency.  I don't remember that part, but there was a time

table for the adoptive parents to follow.  I don't think there was anything

formal about non-compliance that I know of, that I am aware of. 

Nothing formal.

    MR. FERGUSON.  So you had guidelines that just simply weren't

followed?

    MS. DRUGER.  That may happen, especially during a certain period

of time when things were in limbo because of some things, some issues

between FTIA and Reaching Out.

    MR. FERGUSON.  Last question.  Last question, Mr. Chairman.  I

appreciate the indulgence.  Ms. Druger, was Ms. Smith familiar and

knowledgeable about these different cases?

    MS. DRUGER.  Every case.

    MR. FERGUSON.  Every case, every situation?  The details of the

situations, the details of the cases?

    MS. DRUGER.  Absolutely.

    MR. FERGUSON.  That is remarkably tragic.

    MR. WHITFIELD.  Thank you, Mr. Ferguson.  At this time, I

recognize Dr. Burgess for 10 minutes.

    MR. BURGESS.  Thank you, Mr. Chairman.  Mr. Wallace, do you

have one of these evidence binders in front of you?  Or can you get one?

    MR. WALLACE.  No, sir, I don't, but I will.

    MR. BURGESS.  Can I ask you to open that up to Tab 6 and this starts

off with a fax cover page.

    MR. WALLACE.  Yes, sir.

    MR. BURGESS.  Now, that is your organization, correct?  The

Families Thru International Adoption?

    MR. WALLACE.  The name of our organization is Families Thru

International Adoption, yes.

    MR. BURGESS.  And was Ms. Druger working for you at that time?

    MR. WALLACE.  Ms. Druger never worked for FTIA.

    MR. BURGESS.  Why is this like this?  Is this just an error?  Oh, this

was addressed to Serguei.  But through your company.

    MR. WALLACE.  As was explained earlier, FTIA had retained Ms.

Smith as an independent contractor, a northeast regional coordinator, to

contact families about international adoption, network with other

professionals, and that relationship went on for about 16 months.  It was

somewhat turbulent.  She was given far advanced warning that this has

got to change; it didn't and she was terminated.  During the time she

worked with us, she would have access--well, she also changed--we had

an application that we had prepared and submit for her to use and she

would change it and then send it out.

    MR. BURGESS.  All right, I think I understand the gist, but Ms.

Druger, you did not actually work for Families Thru International

Adoption?

    MS. DRUGER.  No.

    MR. BURGESS.  Mr. Dymtchenko, if I have pronounced that

correctly, you made the statement, in your opening statement, that you

wish that Mr. Mancuso's wife and daughter had been more forthcoming

with information.  Under this same tab, we actually have a letter from

Mr. Mancuso's daughter that looks pretty benign.  Have you become

aware of evidence from Mr. Mancuso's older daughter or ex-wife that

would have led you to believe that he was an unsuitable candidate for

parenthood?

    MR. DYMTCHENKO.  The only letter that I saw, it was a letter of his

daughter that he included as a reference in his adoption file, which was

translated and also presented to the Russian court and Russian judge

asking Mr. Mancuso, along with the prosecutor, a lot of questions about

his relationship with his biological daughter.

    MR. BURGESS.  But you referenced, in your opening statement, that

you wish that Mr. Mancuso's ex-wife and adult daughter had been more

forthcoming with information and we got information from--

    MR. DYMTCHENKO.  I believe that would be helpful.

    MR. BURGESS.  Yes.  Well, we got information from his daughter

that, again, looks pretty benign.  What about--are you aware of any

information from Mr. Mancuso's ex-wife?

    MR. DYMTCHENKO.  No, I saw their interview on television.

    MR. BURGESS.  I am a little bit troubled that this tab--why don't we

pass that all the way down to the end of the table, if he has just got one

book there?  It shows some pictures of some family outings, some

pictures of the house.  I guess it was a three bedroom house.  One of the

bedrooms was converted to an office.  One of the things, the most

troubling things that we heard during Masha's testimony was that from

day one she didn't have her own room.  She slept in Mr. Mancuso's bed

from day one.

    I mean, someone somewhere along the line had to know about that,

that this little girl wasn't being provided her own bedroom.  Wouldn't

that be just one of the--I mean, I will admit.  I have never heard of a

single man adopting a 5 or 6-year-old child.  Maybe it does happen and I

am just not aware of it, but boy, it would seem to me to just be so basic. 

Does this child have her own bedroom?  We have got three world-class

social workers at the end of the table.  Is that an unreasonable question to

ask?  Ms. Eiferman, let me just ask you.  Is that an unreasonable question

to ask?

    MS. EIFERMAN.  When I conduct in-home post-placement interviews

with my New Jersey families, we certainly review the whole home and

we look at the child's bedroom.  Usually, the child will take me to their

bedroom and perhaps proudly show me their new things, so it is

intricately part of an in-home post-placement visit.

    MR. BURGESS.  Now, in this case, the in-home post-placement visits

that we have, at least the ones we have to look at for the purposes of this

hearing, are Tab 13 and Tab 15, is that--do you have that?

    MS. EIFERMAN.  Hang on a second.

    MR. BURGESS.  Do you have that available?

    MS. EIFERMAN.  Yes, here it is.

    MR. BURGESS.  Okay, Tab 13, Social Services of Western

Pennsylvania.

    MS. EIFERMAN.  Yes.

    MR. BURGESS.  You are pretty familiar with these people, you work

with them all the time?  A good group?  Straightforward?

    MS. EIFERMAN.  First of all, I was not employed in the office.  I was

not an employee of Reaching Out when this was done in March of 1999.

    MR. BURGESS.  Okay, fair enough.

    MS. EIFERMAN.  Since my--if you are asking since my employment

there?  Since November of 2000, this is not an entity that I have heard of

before.

    MR. BURGESS.  Okay.  Well, Frances White, who is a licensed social

worker, is she someone, he or she someone who is known to you?

    MS. EIFERMAN.  I would have to say the same; same reply.

    MR. BURGESS.  Ms. Smith, you were working at the company March

23rd of 1999, is that correct?

    MS. SMITH.  Yes.

    MR. BURGESS.  Okay.  Social Services of Western Pennsylvania, are

they a stand-up group?  They do a lot of work for you?

    MS. SMITH.  I do not handle any home studies or post-placement

reports whatsoever.

    MR. BURGESS.  Who does?

    MS. SMITH.  All of that goes to our social work supervisor.

    MR. BURGESS.  Who is that?

    MS. SMITH.  Right now, it is Carol Eiferman.

    MR. BURGESS.  Who would that have been March 23rd of 1999?

    MS. SMITH.  That, most likely, would have been Leslie Breslau.

    MR. BURGESS.  And she is not with us today?

    MS. SMITH.  No.

    MR. BURGESS.  Okay.  Are you familiar with Frances White,

licensed social worker?

    MS. SMITH.  No.

    MR. BURGESS.  Why--I mean, this is so sad.  Here is where it could

have been stopped, right here, and no one really takes ownership of the

report and no one knows the social worker.  Whose responsibility is it

when arranging an adoption and whose responsibility is it to receive

these types of reports?  I mean, is Serguei's group over there in Russia, is

he going to be happy to send you more cases if this is the caliber of

report that comes in?  Nobody knows who the company is, nobody

knows who the social worker is.  Mr. Chairman, I would ask that we

subpoena Frances.

    MR. WHITFIELD.  We have tried to find her and we don't think she

exists.

    MR. BURGESS.  Well, then that calls into question just the whole

validity of this report.  Ms. Eiferman, let us look at the other report that

we have available, which is under Tab 15, and this was done--I want to

be sure I have got it during your time of employment.

    MS. EIFERMAN.  Right.

    MR. BURGESS.  This was done July 7 of 1998.  Would that be under

your jurisdiction or is that someone else, also?  You signed it, so I

presume that this is your report.

    MS. EIFERMAN.  I am looking under Tab 15.  There is a report dated

November 15, 2000.

    MR. BURGESS.  Yes.

    MS. EIFERMAN.  Which--you mentioned a July date.  I am confused.

    MR. BURGESS.  I beg your pardon.  It is the date the child was

received, July 7, 1998.

    MS. EIFERMAN.  Okay.

    MR. BURGESS.  So you made this report yourself in November of

2000.

    MS. EIFERMAN.  This report was generated when Marlene, who was

our Executive Director and also worked with families adopting from

Russia as our in-office country caseworker, came to me and said this is

an urgent matter.  The Russian courts, and the Russian officials are

requesting information about this child, Masha.  Could you finish up on a

report a predecessor of mine started?  And at first I said, well, I am a bit

uncomfortable with this, because I am licensed in New Jersey and I

really practice in New Jersey.  I was given the understanding and given

the information that best practice is, of course, in-home; that at the time

it was acceptable practice if families could not meet with the agency for

some reason, that telephone interviews could be conducted.  So I went

and I found the initial scratch notes done by a predecessor and I did

indeed then telephone Mr. Mancuso to verify information, to get a little

more detail, and then I did prepare the report that you have here.

    MR. BURGESS.  From testimony that we received from Russia, as I

recall, and anyone feel free to correct me, as I recall, the abuse started

basically the night she arrived in Mr. Mancuso's home, so around July of

1998.  So we are 2 and a half years later, November 2000, but I don't

think the abuse was actually discovered for another several years.  So

here is a point at which had someone gone to the home and had an

opportunity to interact with the child, it might have been a red flag to

someone, that the little girl didn't say come and see my room, come and

see my stuff--

    MS. EIFERMAN.  Yes.

    MR. BURGESS.  --come and see my things.  And a logical question

might have been, can you show me where you sleep.

    MS. EIFERMAN.  Yes.

    MR. BURGESS.  And that might have uncovered a lot of this stuff. 

You know, it is so frustrating for us up here, because we have had to sit

and listen to hours and hours of testimony from the child herself.

    MS. EIFERMAN.  Yes.

    MR. BURGESS.  And I mean, almost all of us here are parents and it

was extremely--it was a bad, bad day.  Let us just leave it at that.  Ms.

Druger, I would like to ask you one other question and we will go back

to Tab 6, the very last page of that, after all of the photographs showing

things that just reek of normalcy, you penned a note there, or Mr.

Mancuso, I beg your pardon, has penned a note back to you and says, I

hope this helps explain my position and plan on the feminine needs

question.  Now, I am not trying to embarrass anyone, but for the life of

me, I don't see where--number one, I guess I really don't know what was

asked, but I suspect that I know.  I mean, I am a physician, I am an Ob-

gyn physician.  I suspect that I know what the question is addressing, but

for the life of me, I don't see how it was addressed in any of these

photos.  Can you elaborate on that at all?

    MS. DRUGER.  Are you talking to me?

    MR. BURGESS.  Yes.  The note was addressed to you.

    MS. DRUGER.  Right, right.

    MR. BURGESS.  I assume that you are the woman the note was

addressed to was you.

    MS. DRUGER.  Right.  No, I have absolutely no idea what it meant,

but I assumed that maybe it had something to do with when, during the

home study process, when certain questions are asked regarding how he

would address issues with her, at some point that is what I took as

feminine needs, that is the way I interpreted it.

    MR. BURGESS.  Right.  Boy, if we could have followed that up in

February of 1998--

    MS. DRUGER.  Yes.

    MR. BURGESS.  --we would have stopped this problem a lot sooner.

    MR. WHITFIELD.  The gentleman's time has expired.  I recognize--

    MR. BURGESS.  Thank you, Mr. Chairman.

    MR. WHITFIELD.  --Mr. Walden for 10 minutes.

    MR. WALDEN.  Thank you very much, Mr. Chairman.  I have been

listening to this panel and our colleagues here questioning the panel of

witnesses and it is most disturbing.  I am unfortunately engaged in a

couple of other meetings at the same time and so I would like to yield,

however, to my colleague.  Mr. Ferguson from New Jersey has been very

much involved in trying to get to the bottom of this and Mr. Chairman,

with your permission, I would yield the balance of my time to Mr.

Ferguson.

    MR. FERGUSON.  I thank the gentleman for yielding.  I actually want

to continue on what Dr. Burgess was talking about.  Mr. Baird, as part of

the home study, Mr. Mancuso submitted reference letters, three reference

letters.  All of them were from coworkers of his.  They are attached to

the home study in Tab 5.  I don't if you can pass the binder around.  If

you could take a look at the binder and Tab 5.  I am pretty sure it is Tab

5.  Is it 5 or 6?  Okay, we will find them.  I think they may be in Tab 5. 

They may be near Tab 5.  These recommendation letters are short.  Two

of them are about half a page in length.  Did anyone talk--from your

agency talk to these references to delve a little deeper and learn more

about their opinion of him, as he might be an adoptive parent?

    MR. BAIRD.  Not from what I can tell from the file.

    MR. FERGUSON.  Okay.  Any idea why?

    MR. BAIRD.  No.  Typically, we did not check references.  We did

not verify letters of reference.

    MR. FERGUSON.  So these could have been from anybody.  He could

have written them himself.

    MR. BAIRD.  I suppose so, but that is right.  It is not part of the

requirements, the regulations, to verify letters of reference.  So we don't

typically do it unless there is some inconsistency that we see.

    MR. FERGUSON.  Ms. Smith, do you verify letters of

recommendation?

    MS. SMITH.  Carol, can you address that?

    MR. FERGUSON.  Wait, wait, wait.  Ms. Smith, do you know if you

do it or not?

    MS. SMITH.  I don't handle the social work, no.

    MR. FERGUSON.  So you don't know if you verify letters of

recommendation or not?

    MS. SMITH.  I don't know that, but can I ask my social work--

    MR. FERGUSON.  Sure.

    MS. SMITH.  --supervisor to address that?

    MR. FERGUSON.  Okay, I just wanted to establish that you don't

know that.  You do know that?

    MS. EIFERMAN.  At the present time we do.  Whether that was a

policy of the agency when this adoption took place, I can't speak to that.

    MR. FERGUSON.  Okay.  That strikes me as unsettling, that nobody

seems to--didn't, anyway, seem to even check letters of recommendation. 

Okay, back to Mr. Baird.  So even though neither the State nor the

adoption agency required you to follow up on the references, your

agency attached them to the report.  Why would your agency want to

include information on the report if it wasn't actually verified?

    MR. BAIRD.  It was required by the page that we received from

Reaching Out Thru International Adoption on what they needed to have

accompany the home study.

    MR. FERGUSON.  So you submitted information that--did you tell

them it wasn't verified?  It just seems--

    MR. BAIRD.  I don't know, from the files, whether we did.  We sent

them as part of a package.

    MR. FERGUSON.  So you got these letters.  By even any kind of

objective observation, they were sort of skimpy looking.  A couple of

them are a half a page, all from coworkers, no verification whatsoever,

but you just submitted them with the report, as if you believed they were

completely bona fide.

    MR. BAIRD.  That is right.

    MR. FERGUSON.  You said in your testimony that it was your

agency's experience that the planning agency in international adoptions

contacted an applicant's references.  Did you verify that Jeannene Smith

or her agency checked his references?

    MR. BAIRD.  No.

    MR. FERGUSON.  Mr. Mancuso's references.

    MR. BAIRD.  No.

    MR. FERGUSON.  Why?

    MR. BAIRD.  We don't typically verify references ourselves, so there

is no information in the file that we asked them to verify if they had

checked the references.

    MS. EIFERMAN.  Mr. Ferguson, may I add something here?  I mean,

this was not a home--under the New Jersey standards which we operate

for home study.  It is not a standard of the State of New Jersey that when

families submit--in New Jersey it is for letters of reference.  The

standards of practice for adoption agencies do not indicate that then the

agency must contact each person that wrote those letters and submitted

them.  So it is not a State standard in New Jersey and perhaps not in

Pennsylvania.  So that is an issue for an agency--

    MR. FERGUSON.  Sure.

    MS. EIFERMAN.  --to decide.

    MR. FERGUSON.  And I wouldn't argue with you if we are going to

agree that that is a problem.  That is a serious flaw in the law.

    MS. EIFERMAN.  Yes.  Okay.

    MR. FERGUSON.  But I am just trying to get to like a mindset here,

sort of in good conscience.

    MS. EIFERMAN.  Yes.

    MR. FERGUSON.  What would someone--

    MS. EIFERMAN.  I understand.

    MR. FERGUSON.  What if it was your child?

    MS. EIFERMAN.  Right.

    MR. FERGUSON.  You know, why wouldn't--I mean, and particularly

if you are getting letters of recommendation from someone.  You have

no idea who they are and that is why you asked for letters of

recommendation.  You get three from three coworkers and there is no

verification that they were even done by them.

    MS. EIFERMAN.  Yes.

    MR. FERGUSON.  No follow-up, no conversation.  I mean, it is

skimpy to begin with.  No nothing.  Hannah, yes, that is--Hannah, I am

sorry.

    MS. DRUGER.  Right.

    MR. FERGUSON.  Ms. Druger, you, in a letter--we have a letter from

Mr. Mancuso.  This is Tab 6, I think, still.  Yes.  You had actually asked

for additional letters of recommendation.  Based on his response, our

assumption is that you had asked for additional letters of

recommendation.

    MS. DRUGER.  Where are you?

    MR. FERGUSON.  This is Tab 6, page 2.  The first page of Tab 6 is a

fax cover page.  The second page is a letter from--Dear Hannah, enclosed

are some other references letter that you asked for, along with another

statement from me concerning my reasons for adoption.  I hope this what

you were looking for.  Matthew Mancuso.  Why did you ask for

additional letters of recommendation?

    MS. DRUGER.  I am wondering if I was asked by the social work

supervisor to cover a category such as a neighbor, someone, maybe a

person that knew him better.  I don't remember, but I don't know if--I

really don't remember specifically, but usually I would think that the

reference letter would have to incorporate a certain familiarity, not just

coworkers.  So I don't know.

    MR. FERGUSON.  Who was working at the company at the time, at

the agency?

    MS. DRUGER.  I was.  I was there with Jeannene and we had a social

work supervisor as well.  Every agency has to have an executive director

and a social work supervisor.  She is not here.

    MR. FERGUSON.  And you weren't licensed, so you didn't

necessarily have a social worker there.

    MS. DRUGER.  At this time, I think she was licensed May 1998.  I

don't know.

    MR. FERGUSON.  This is February.

    MS. SMITH.  At the time of that letter, it is before Mr. Wallace states

he delivered the letter to us.

    MR. FERGUSON.  Okay.

    MS. DRUGER.  FTIA.

    MR. FERGUSON.  The point is, this isn't a big bureaucracy.  There

aren't thousands of people and it kind of got lost in a shuffle.  There is

three people in an office.  No one knows why there was a request for

additional letters of recommendation.  This is the mystery.  It is another

mystery.  What was the problem?

    MS. DRUGER.  There is nothing--

    MR. FERGUSON.  Someone wanted more letters of recommendation. 

A red flag went off.  Somebody's conscience said there could be a

problem here.  I want to know who thought of that, what the red flag

was, and why these additional letters of recommendation were requested. 

Ms. Druger, can you answer that question?

    MS. DRUGER.  I am sorry, I can't.

    MR. FERGUSON.  Ms. Smith, can you answer that question?  Do you

agree that this is an important question to have an answer for?

    MS. SMITH.  Yes, I do.

    MR. FERGUSON.  Serguei, can you tell me why?

    MR. DYMTCHENKO.  Unfortunately I cannot, but I can tell you that

the letters of recommendations were not required by Russia, so they are

not recognized as official documents.  It could be prepared by anyone, so

it is not official document.  I don't know why they asked for it.

    MR. FERGUSON.  If the post-placement reports are not done, what

does the Russian government do to that agency?

    MR. DYMTCHENKO.  Then it was a different procedure, but I

personally send some of the request letters from the Russian minister--

    MR. FERGUSON.  Okay, let me rephrase.  I am sorry to interrupt you. 

I am very short on time.  How did the Russian government feel about this

particular situation, where the post-placement report was not done?

    MR. DYMTCHENKO.  Usually, we used to--in writing post-placement

reports and some of those letters I send personally to Jeannene Smith--

    MR. FERGUSON.  Were they--

    MR. DYMTCHENKO.  --because she was not complying with some

other cases as well.

    MR. FERGUSON.  Were they pleased with what was going on here or

displeased?

    MR. DYMTCHENKO.  Of course displeased.

    MR. FERGUSON.  Displeased.

    MR. DYMTCHENKO.  The post-placement report is the most

important tool in supervision of the living of the child after adoption in a

new family.

    MR. FERGUSON.  For very obvious reasons, yes.

    MR. DYMTCHENKO.  Yes, of course.

    MR. WHITFIELD.  The gentleman's time has expired.

    MR. FERGUSON.  Thank you, Mr. Chairman.

    MR. WHITFIELD.  Mr. Dymtchenko, the Russian government is

aware that Mr. Mancuso was convicted of child molestation and is in

prison today, is that correct?

    MR. DYMTCHENKO.  I personally was investigated by general

prosecution office of Russian Federation twice on this case.

    MR. WHITFIELD.  So they are aware.

    MR. DYMTCHENKO.  And not just me, every single person who was

involved the case in Russia.

    MR. WHITFIELD.  Okay.

    MR. DYMTCHENKO.  The judge, the prosecution, the Minister of

Education, every single one.

    MR. WHITFIELD.  Now, I would assume that if these post-placement

reports were not conducted, that the government of Russia may be less

interested in using that agency for adoption purposes.  Would that be

accurate or not accurate?

    MR. DYMTCHENKO.  Oh, I believe so.

    MR. WHITFIELD.  So I mean--

    MR. DYMTCHENKO.  But--

    MR. WHITFIELD.  --everything seems so hodge-podge here and

without any strict regulations and everything being very nebulous and

arbitrary, it almost appears that the only reason that any of these adoption

agencies would even ask for a post-placement report is they want to

make sure they get additional adoptions opportunities from the Russian

government.

    MR. DYMTCHENKO.  But since 2001, Russia requires the agencies

operating in Russia be accredited by the Russian government.

    MR. WHITFIELD.  Yes, yes.

    MR. DYMTCHENKO.  The procedure has changed.

    MR. WHITFIELD.  Well, you seem to be further along than we are in

this country.  I mean, if there ever was an area that needs to be regulated

by the Federal government, this is the area.  And I would just ask Ms.

Smith, what is your gross income per year at your agency?

    MS. SMITH.  Me personally?

    MR. WHITFIELD.  Your agency.  What is the gross revenue?

    MS. SMITH.  I have no idea.

    MR. WHITFIELD.  You don't know?  Mr. Wallace, what about you?

    MR. WALLACE.  Mr. Chairman--

    MR. WHITFIELD.  You don't know how much your gross revenues

are with your fees?  I mean, I can't believe you can sit there and say that

you own this agency, you are licensed, and you don't know what your

income is.

    MS. SMITH.  I have an accountant that does that and we file, but I

don't--

    MR. WHITFIELD.  I am not asking you to--

    MS. SMITH.  Put a range.

    MR. WHITFIELD.  I am asking you just a range of your gross revenue.

    MS. SMITH.  I honestly don't know the answer to that question.

    MR. WHITFIELD.  Mr. Wallace, what about you?

    MR. WALLACE.  Which year?

    MR. WHITFIELD.  Any year.  I guess the most recent.

    MR. WALLACE.  Well, we started out with probably $50,000 in gross

revenues and we have been blessed to do well and at this point, calendar

year 2006, we will probably have about two and a half million dollars in

revenue.

    MR. WHITFIELD.  Okay.  Well, I would hope that the other members

of the subcommittee, even though Oversight and Investigations is not a

legislative subcommittee, we do make recommendations on legislation,

and I hope that all of us maybe could agree that this is an area that we

need to explore some Federal legislation on this area.  I yield to Mr.

Stupak.

    MR. STUPAK.  Thank you, Mr. Chairman.  Mr. Wallace, are you

aware of any adoption agencies being shut down by State officials?

    MR. WALLACE.  I am sorry.  Am I aware of any adoption agency

being shut down?

    MR. STUPAK.  Sure.  You are in Indiana, right?

    MR. WALLACE.  I am in Indiana.

    MR. STUPAK.  Do you know of any Indiana?

    MR. WALLACE.  I cannot--there is one in Florida that I am aware of,

because I read adoption news.

    MR. STUPAK.  Yes, one in Florida.

    MR. WALLACE.  And there was one in a lot of trouble that I think

was on probation maybe a year ago in Indiana.  Unfortunately, I don't

know of more.

    MR. STUPAK.  Well, it sounds like there is no standards and there is

no enforcement in the world of adoption, is that right?

    MR. WALLACE.  I think it is very, very, very poorly regulated on a

State by State basis.  Some States have a little better oversight and

regulation; many States have poor regulation.  When there are problems,

the agency usually has reasons why and promises not to do it again and--

    MR. STUPAK.  And that is about it.

    MR. WALLACE.  -there are very few consequences.

    MR. STUPAK.  I find it amazing that no one checks references.  But

before you hire someone, do you check their references?

    MR. WALLACE.  Yes.

    MR. STUPAK.  So you check references for hiring but not for

adoptions?

    MR. WALLACE.  I am sorry?

    MR. STUPAK.  So you check references for hiring someone but not

for references to place someone in a home?

    MR. WALLACE.  I would say it is absolutely not a common practice

for adoption agencies to verify letters of reference.  As I sit here today, it

certainly--hindsight seems like it would be a great idea, but I do see a

couple of issues.  First of all, adoptive parents do have to jump through

many hoops.  There are sex abuse checks, child abuse checks, criminal

checks.

    MR. STUPAK.  Well, then why did all of those fail here?

    MR. WALLACE.  The system isn't perfect.  I am not here to defend it-

-

    MR. STUPAK.  Right.

    MR. WALLACE.  --but I am just saying adoptive parents have to work

very hard to become adoptive parents.  Thankfully, I hope and pray that

Mr. Mancuso's case is one isolated incident.  It may not be.  And we do

need a good standard and as I said--

    MR. STUPAK.  Well, let me ask you this question.  Would you agree

with Mr. Dymtchenko that the most important thing is the post-adoptive

report?

    MR. WALLACE.  Yes.  I mean, I think making sure the person--

    MR. STUPAK.  Sure.

    MR. WALLACE.  --as a qualified candidate, according to current

standards, and there is a Federal FBI fingerprint check and everything,

but yes, after that child is placed in the home, the most important thing is

the post-placement.

    MR. STUPAK.  So even the most important thing in this case was

never done, right?

    MR. WALLACE.  It was--from what I have heard and listened to--

    MR. STUPAK.  Right.

    MR. WALLACE.  --and so forth, no.

    MR. STUPAK.  Well, Ms. Smith, can you tell us why it was never

done, the post-adoption report?

    MS. SMITH.  It seems evident that there were--

    MR. STUPAK.  Pardon?

    MS. SMITH.  It seems evident that there were attempts to have it

done.

    MR. STUPAK.  What attempts were they?

    MS. SMITH.  There was notification sent.  There were reports

submitted that we have since found are probably fraudulent reports.  We

need tools and we need laws that will enforce this.

    MR. STUPAK.  Well, let me go to--go to Tab 12 for me, would you? 

Go to Tab 12.  Do you have it there, a two-page report?

    MS. SMITH.  Yes.

    MR. STUPAK.  Okay, go to the second page.  You sent Matthew a

welcome home letter and the post-placement schedule and the dates are

on there, 11/98, 3/99, and 7/99.

    MS. SMITH.  Yes.

    MR. STUPAK.  Who wrote that out there?

    MS. SMITH.  I don't know.

    MS. DRUGER.  I did.

    MR. STUPAK.  Ms. Druger?

    MS. SMITH.  That is her handwriting, yes.

    MS. DRUGER.  Yes.

    MR. STUPAK.  Okay.  And then how about the next one, 9/25/98,

received letter and photos from Matt.  Sent to--

    MS. DRUGER.  That is mine, too.

    MR. STUPAK.  Okay.  Now, was that a post-adoption report, then? 

You received a letter and photos?

    MS. SMITH.  I think it was referring to that note that came with the--

that handwritten note that he wrote to me.

    MR. STUPAK.  Okay, but that is not a post-placement report, right?

    MS. SMITH.  No.

    MR. STUPAK.  Correct?  This note from him is not a post-placement

report?

    MS. SMITH.  No, it is not.

    MR. STUPAK.  Okay.  2/24/99, the next entry.  Left a message

requesting a post-placement report.  Who is L.B.?  Whose handwriting

would that be?

    MS. SMITH.  That is Leslie Breslau, the social work supervisor.

    MR. STUPAK.  Okay.  So how about 3/30/99, filed copy of post-

placement and gave to Leslie to mail to Serguei?  Filed copy in chart.

    MS. DRUGER.  That is mine.

    MR. STUPAK.  That is yours again, Ms. Druger?

    MS. DRUGER.  Yes.

    MR. STUPAK.  Okay.  Then how about this one, 11/16/2000, sent PP? 

That is post-placement report, I take it, Number 4, to Matt Mancuso. 

The next is dated 7/2/01, correct?

    MS. DRUGER.  That is my handwriting.

    MR. STUPAK.  Okay.  What does that mean?

    MS. DRUGER.  That means that the report that I generated with him, I

sent him a copy as well.

    MR. STUPAK.  Okay, the report you generated with him, is this the

one you did by phone?

    MS. DRUGER.  Correct.

    MR. STUPAK.  Why would you call it PP Number 4?

    MS. DRUGER.  That was a way to keep in chronological order.

    MR. STUPAK.  Okay, but--

    MS. DRUGER.  Also, I believe in--

    MR. STUPAK.  Well, are you telling me there is four post-placement

reports on this case?

    MS. DRUGER.  No, that is my way of keeping in chronological order. 

The one that I--

    MR. STUPAK.  Okay.  What does Number 4 mean then?

    MS. DRUGER.  The one that I was involved with would have been the

fourth post-placement report requested.

    MR. STUPAK.  Okay.  So you have a person with four requests for a

post-placement and as far as we know, he only filed one, correct?

    MS. DRUGER.  When I last saw the file, there was only one there.

    MR. STUPAK.  Well, did you follow up on it then, when you only

saw one there?

    MS. DRUGER.  The follow-up I did was the report.

    MR. STUPAK.  Was the telephone call?

    MS. DRUGER.  Yes, it was the report in 2000.

    MR. STUPAK.  What about the one that was due in July of 2001, did

anyone follow up on that?

    MS. DRUGER.  When I completed the report, then I gave it to our

Executive Director, Marlene.

    MR. STUPAK.  Okay.

    MS. DRUGER.  And my best recollection is, I said to her, I am really

not comfortable with doing these.  I don't want to do another one.

    MR. STUPAK.  Not comfortable doing what, these reports?

    MS. DRUGER.  A telephone post-placement with someone who was

living out of State.

    MR. STUPAK.  So why didn't you have someone go visit the home

then, if you are not comfortable with it?

    MS. DRUGER.  Well, the reports are voluntary.  He could have

perhaps let someone.  At the time--

    MR. STUPAK.  Well, how can a report be voluntary when it is the

critical aspect?  The post-placement report, that is the critical part, the

most important document that we have in adoption.  How can that be

voluntary?  You said the reports are voluntary.

    MS. DRUGER.  The reports are voluntary.  The State statutes do not

speak to completed adoption post-placement supervision.  The

requirement--

    MR. STUPAK.  But does a Russian law?

    MS. DRUGER.  The Russian law does, but the State laws do not.

    MR. STUPAK.  So when you are sitting in your office when you are

doing an adoption with a Russian child, what laws do you give credence

to, the State of New Jersey or Russian?

    MS. DRUGER.  I give the New Jersey laws credence.

    MR. STUPAK.  How about Russian?

    MS. DRUGER.  And I tell the families that this is a requirement of the

country you are adopting from, whichever it may be.

    MR. STUPAK.  Okay.

    MS. DRUGER.  And that these are--it is now in the agency contract.

    MR. STUPAK.  So the bottom line is now--

    MS. DRUGER.  That is something we are going to require of you.  But

if you look carefully at the New Jersey adoption standards, even to this

day, finalized adoption reporting--

    MR. STUPAK.  Well, you are talking about--

    MS. DRUGER.  --are silent on.

    MR. STUPAK.  You are talking about the--

    MS. DRUGER.  To put this technically, yes.

    MR. STUPAK.  When you talk about this New Jersey adoption, did

you have any policy in your office on how you are supposed to do this

stuff?  You talk about these standards.

    MS. DRUGER.  To do the reports?

    MR. STUPAK.  Or the adoption or your aspects.  Did you have any

written policy?  In this office of Reaching Out Thru International

Adoption, Incorporated, did you have written policies in that office?

    MS. DRUGER.  Of course.

    MR. STUPAK.  You did.  Did they require you to do a post-placement

report?

    MS. DRUGER.  They require us to make every single attempt that we

can to get the information.  When I was requested--

    MR. STUPAK.  Then what did--

    MS. DRUGER.  --to do the one report I did, and I did let the director

know at that time I was not going to be doing another one.

    MR. STUPAK.  And then what did you do after July 21, I am sorry,

July 2001, to get one from Mr. Mancuso?

    MS. DRUGER.  The subject never came up again.

    MR. STUPAK.  It never came up again until--

    MS. DRUGER.  No.

    MR. STUPAK.  --today?

    MS. DRUGER.  No, not until today, but I mean, it never came up

between us at that time.

    MR. STUPAK.  Okay.  But has your--

    MS. DRUGER.  My understanding was that perhaps other avenues

were handling this.

    MR. STUPAK.  Who told you other avenues were handling this?

    MS. DRUGER.  No one told me that, but I--

    MR. STUPAK.  So you just assumed?

    MS. DRUGER.  I made it clear that that was not something I was

going to do.  I am licensed in the State of New Jersey to work with New

Jersey families.  I felt that if anyone should be doing that report, it should

be someone in Pennsylvania.

    MR. STUPAK.  So did you contact anyone in Pennsylvania?

    MS. DRUGER.  No, I let the director know I wasn't going to do it and

it never came--

    MR. STUPAK.  And the director--

    MS. DRUGER.  It was never discussed again as, okay, we have to get

X, Y, and Z completed, done, finished.  I never heard from--to the best of

my recollection, I never heard from any other entity regarding this case.

    MR. STUPAK.  How would any other entity know about if you didn't

tell them?  So why would some other entity notify you about this case if

you never notified them?

    MS. DRUGER.  The entities I refer to are the foreign officials.

    MR. STUPAK.  The foreign officials?

    MS. DRUGER.  Yes.  There were no further requests ever made.

    MR. STUPAK.  Well, did your agency ever tell Pennsylvania that this

child you helped to pursue the adoption with was now in Pennsylvania? 

Is that one of your requirements?

    MS. DRUGER.  If you are speaking at the time of the child's

homecoming, that I--

    MR. STUPAK.  I am talking about Masha Allen.

    MS. DRUGER.  No, I understand.

    MR. STUPAK.  When you know she is going to Pennsylvania, aren't

you supposed to notify Pennsylvania?  Isn't that one of your

requirements of your license?

    MS. DRUGER.  I was not in the employ of Reaching Out at the time

of the child's homecoming, so I can't speak to that standard or that

practice, what they did at that time.  It is clear that there is a letter here

from the previous casework supervisor outlining what was necessary to

the adoptive parent.

    MR. STUPAK.  But wasn't Reaching Out Thru International Adoption

required to contact Pennsylvania officials to tell them that this person has

moved to their State?  So the State adoption laws, as Mr. Baird testified,

that would have been critical there.

    MS. DRUGER.  I am not versed in the Pennsylvania adoption laws.

    MR. WHITFIELD.  The gentleman's time has expired.

    MR. STUPAK.  Thank you, Mr. Chairman.  It is a panel of see no evil

and hear no evil and speak no evil.

    MR. WHITFIELD.  Yes, yes.  Mr. Ferguson, Mr. Walden yielding you

his time and we ware going to recognize you again for 5 minutes, then

we will go to Dr. Burgess, and then I still think we will have time to go

to the floor for a vote and then after your questions, we can dismiss this

panel.

    MR. FERGUSON.  Mr. Wallace, how many kids--how many children

have you all placed for adoption over the years?

    MR. WALLACE.  About 3,000.

    MR. FERGUSON.  Three thousand.  Do you still talk to any of them?

    MR. WALLACE.  Many?

    MR. FERGUSON.  Yes?

    MR. WALLACE.  We have a reunion every year.  We had about 2,000

people this year.  We have an East Coast picnic.  We get cards and

letters.  We let people know we are available if they need resources.  We

have had families call us and say, I think this other family has an issue or

a problem, and we will take it and run with it.

    MR. FERGUSON.  Ms. Smith, how many children have you and your

organization placed for adoption over the years?

    MS. SMITH.  A few hundred.

    MR. FERGUSON.  A few hundred.  Do you have activities like that or

do you ever see them?  Do you ever talk to them?

    MS. SMITH.  Yes.

    MR. FERGUSON.  In what circumstances?

    MS. SMITH.  We have had reunions and gatherings.

    MR. FERGUSON.  Would you just pull the microphone closer?  Sorry.

    MS. SMITH.  We have had some reunions, gatherings.  We are much

smaller.  But yes, we see the families and the kids and that is a very big

part of what we do.

    MR. FERGUSON.  Rewarding, isn't it?

    MS. SMITH.  Yes.

    MR. FERGUSON.  In the case of Masha, as far as we can tell, once she

was placed in Mr. Mancuso's home, am I wrong about this, did anybody

talk to her or Mr. Mancuso at all since that day?  Has anyone?  Ms.

Smith, have you?

    MS. SMITH.  The file indicated that two of our social work

supervisors spoke with Mr. Mancuso.

    MR. FERGUSON.  Okay.

    MS. SMITH.  And again, there was a post-placement report in the file. 

We did not know it was fraudulent at the time.

    MR. FERGUSON.  Ms. Eiferman, was it you who--did you speak to

him?

    MS. EIFERMAN.  I had perhaps a 30-minute conversation with him

once.

    MR. FERGUSON.  Post-placement?

    MS. EIFERMAN.  Correct.  Post-adoption, correct.

    MR. FERGUSON.  Did you talk to her?

    MS. EIFERMAN.  This was conducted during work hours or

work/school hours, so I spoke only with the father.

    MR. FERGUSON.  Did anyone else, either of you?  You didn't speak

to him.  Did you ever wonder how she was doing, Ms. Smith?

    MS. SMITH.  We always wonder how the kids are doing.

    MR. FERGUSON.  How frequent is it that you have an adoptive parent

who will not communicate, will not have someone come to the home,

essentially nonresponsive, other than a phone conversation?  Is that very

frequent?

    MS. SMITH.  The problem has been pervasive in the industry.  We

have taken--

    MR. FERGUSON.  No, I am just talking about you.  Is it common at

your agency to deal with adoptive parents where you have placed a child-

-

    MS. SMITH.  It has happened.

    MR. FERGUSON.  Is it common?

    MS. SMITH.  It is less now, because we have taken steps to try and

make it forcible.  We make them prepay in advance now and we put it in

a contract.

    MR. FERGUSON.  No, no, that is good, that is good.  Good.  If you

have a parent who sort of wants nothing to do with you after placement

of the child, how does that make you feel?  Do you wonder about what is

going on?

    MS. SMITH.  We do, but there is nothing we have been able to do

about it.  We have had cases like that.

    MR. FERGUSON.  Does it bother you?

    MS. SMITH.  It does.  We have tried contacting DYFS, State

agencies, and they want nothing to do with it.  You are left helpless.

    MR. FERGUSON.  You were left helpless?

    MS. SMITH.  Yes.

    MR. FERGUSON.  That is quite a statement to make after we know

what happened to Masha, isn't it?

    MS. SMITH.  It is.

    MR. FERGUSON.  There was definitely somebody left helpless here.  I

yield back.

    MR. WHITFIELD.  Thank you, Mr. Ferguson.  Dr. Burgess, you are

recognized for 5 minutes.

    MR. BURGESS.  Thank you, Mr. Chairman.  Mr. Wallace, this is a

bad case, isn't it?

    MR. WALLACE.  I am sorry?

    MR. BURGESS.  I said this is a bad case, isn't it?

    MR. WALLACE.  Yes.

    MR. BURGESS.  Mr. Baird, and I appreciate the very thorough report

that you have given us.  You would agree, too, this is a bad case?

    MR. BAIRD.  Yes.

    MR. BURGESS.  And bad cases make bad law, but you know, we are

left with a situation here that we just can't help but react to.  You said

that it is not unusual to have a single man adopt a female child, is that

correct, or that does occur?  Was that your testimony where I heard that

comment made?

    MR. BAIRD.  I said it is allowed in Pennsylvania.  I mean, I should

have said it is allowed in Pennsylvania.  Anybody can adopt in

Pennsylvania.  There is no--

    MR. BURGESS.  Will you give me an idea of how many?

    MR. BAIRD.  How many?

    MR. BURGESS.  What kind of numbers we are talking about.

    MR. BAIRD.  I have no idea how many single men have adopted.  I

know there are over two million single fathers who are parents in the

United States.

    MR. BURGESS.  But I don't mean to cast any aspirations on that

group, but we heard testimony yesterday from a psychologist that 20

percent of men fantasize about a pedophilic relationship and 10 percent

act on it.  The numbers actually may be more toward the 20 percent with

the advent of the Internet.  I would submit that it may be something that

whoever keeps these records and keeps tabs on these children, really may

want to pay some attention to.  We have no idea.  I don't.  Does anyone

on the panel have an opinion as to whether or not this just such an outlier

that we don't really need to worry about it, or is happening tonight? 

Does anyone have an opinion on that?  Mr. Wallace, what do you think?

    MR. WALLACE.  I think that there is about 20,000 kids adopted every

year internationally and that is the past several years.  It has gone up and

down over the years.  And my hope and pray is that--in the opening

statement by the Chairman, he said about bringing kids to the United

States.  To me, adoption is not about bringing kids to the United States. 

Adoption is about bringing kids into a loving permanent safe home. 

There are kids that leave this country that are adopted overseas into

hopefully loving safe homes.  My comment is I am not a big fan of

regulation, but I have often said I wish no one could bring a child into

their home, biological or adoption, without a home study, because nine

times out of ten a home study is a good tool.  It helps people prepare for

parenting and it does catch some folks that aren't prepared.  People are

rejected.  That being said--

    MR. BURGESS.  Well, it is the practice of your company to do a home

study and these post-placement events would have occurred had the

adoptions stayed through your agency.

    MR. WALLACE.  Absolutely.

    MR. BURGESS.  Well, should an agency that gets a post-placement

report from any agency that they don't know, should you require that

they produce a license or some type of documentation or verification that

they are, in fact, an agency of record?

    MR. WALLACE.  We would require with a post-placement a copy of

the agency's license.

    MR. BURGESS.  Ms. Smith, what do you think about that?  Do you

think if your firm contracts with an agency for a post-placement review,

that you don't know that firm, they are new to you, should you require

any additional documentation, a license, something to show that they are

bona fide firm?

    MS. SMITH.  I would like to ask my social work supervisor on that.

    MR. BURGESS.  But I am really interested in your response because

you are the owner of the company.  I mean, I have owned a company and

I know, the buck stops here.  Are you going to accept this or should you

get further documentation that this is indeed a reputable company? 

Because it looks like you had two post-placement checks on this child,

one was fraudulent and one was phoned in, and the third wasn't done. 

And it was the worse of possible circumstances that you left this baby in.

    MS. SMITH.  It is my understanding that we get copies of licenses. 

Again, I can ask Carol to verify that, when we get post-placement.

    MR. BURGESS.  Yes, but Carol didn't work for you then, when we

got this fraudulent one from whoever it was.  Now I have forgotten

which tab it was.  We have been through this so much.  Tab 13, Social

Services of Western Pennsylvania, March 23, 1999.  Carol, you didn't

work there then, did you?

    MS. EIFERMAN.  No, I did not, but I can speak only to the current

practice.

    MR. BURGESS.  All right, the current practice.

    MS. EIFERMAN.  I can't speak to the practice at that time.

    MR. BURGESS.  But the current practice is?

    MS. EIFERMAN.  Well, the current practice is that when--it is

traditionally done, that the agency that home studies a client is also the

agency that will return for post-placement visits.  And we do give the

family--

    MR. BURGESS.  But that didn't happen in this case.

    MS. EIFERMAN.  Okay.

    MR. BURGESS.  Southwest Services of Western Pennsylvania,

apparently it is a company nobody has ever laid eyes on.

    MS. EIFERMAN.  There is occasionally--in the current practice,

occasionally we will have a family that, for whatever personal reason,

will leave their home study agency and have a different person or agency

do their post-placement reporting.  We have built into our system at the

present time, that they must either prepay--

    MR. BURGESS.  What about requiring records from their doctors and

their teachers, do you ever ask for things of this nature?  I cannot believe

a child would have sustained this degree of abuse over and over again

and not have some medical difficulties on account of it.  I mean, I just

can't believe that that would happen.

    MS. EIFERMAN.  When myself and our social workers conduct the

in-home post-placement reports in the State of New Jersey, yes, we do. 

We ask for a letter from either the pediatrician or perhaps the family

practice physician to attest that the child is receiving care and to write a

statement about the child's health at that time.

    MR. BURGESS.  I don't know about New Jersey or Pennsylvania.  In

Texas it is a law that if a doctor suspects something going on, they have

to call CPS--

    MS. EIFERMAN.  Correct.

    MR. BURGESS.  --the Child Protective Services, before the sun sets.  I

mean, it is not an option, it is not negotiable, it has to happen.  I am

assuming it is the same in your State as well.

    MS. EIFERMAN.  We have the same law here and it extends past

physicians.

    MR. BURGESS.  Mr. Chairman, I don't know what to say.  The

system failed this child repeatedly for a number of years.  A statement

was made that perhaps all of us bear some responsibility.  I don't know,

maybe that is true, but I got a feeling from this panel in front of us, some

people are more responsible than others.  It is a bad case.  I will be

surprised if there wasn't litigation.  I don't understand why someone is

not in jail.  And I will yield back.

    MR. WHITFIELD.  Thank you, Dr. Burgess.  With that, I would like to

excuse this panel.  We appreciate your being with us this afternoon.  We

have two votes on the House floor, then we will be coming back and I

would say we will be back at about, at the latest, 15 until 5:00 and then

we will call up the second panel.  And I apologize in advance to the two

panelists on the last panel, and we will be back as soon as possible.  So

we are in recess until 4:45.

    [Recess]

    MR. WHITFIELD.  Okay, we will call the hearing to order, and we

appreciate you all being with us, Mr. Rolsky, who is a board member of

the Joint Council on International Children's Services in Alexandria,

Virginia, and Ms. Trish--is it Maskew?

    MS. MASKEW.  Maskew.

    MR. WHITFIELD.  Maskew--President of Ethica, Incorporated in

Silver Spring, Maryland.  As you know, this is an Oversight and

Investigations hearing and we do take testimony under oath, and do

either or you object to testifying under oath?

    If you would please stand and raise your right hand.

    [Witnesses sworn]

    MR. WHITFIELD.  Thank you very much.  You are both under oath

now and, okay, Ms. Maskew, you are recognized for 5 minutes for your

opening statement.

TESTIMONY OF TRISH MASKEW, PRESIDENT, ETHICA,

INC.; AND JARED ROLSKY, BOARD MEMBER, JOINT

COUNCIL ON INTERNATIONAL CHILDREN'S SERVICES

    MS. MASKEW.  Thank you, Mr. Chairman, and thank you for the

opportunity to testify today.  I am Trish Maskew, President of Ethica, a

nonprofit advocacy group dedicated to improving ethics in adoption. 

Ethica was founded in 2002, in the wake of the Cambodian adoption

crisis, as an independent voice for reform.  And to maintain our

independence, Ethica does not accept monetary support from anyone

who places children for adoption.

    Before founding Ethica, I worked for an adoption agency and I also

served on the board of directors and as interim director of Joint Council. 

When the problems in Cambodia came to light, I had recently been asked

by my agency's director to take over the program there.  In the year that

followed, I became disillusioned and shocked at the unethical and illegal

activity that some were engaged in.  I entered the world of adoption

believing what I had always heard, that most agencies operated ethically

and that there were a few bad apples.  I know longer believe that is true. 

While I believe that the vast majority of adoption professionals are well

intentioned, the unregulated environment they work in, the money that

can be made, and most often their are concern for children and their

desire to help encourage bad practices and lead some to employ

situational ethics, believing that the end justifies the means.  Some try to

excuse the situation in Cambodia by noting that all of the cases were

cleared and only two people were convicted of illegal activity.  But the

truth is that agencies were falsifying home studies, bending the rules and

engaging in willful blindness, ignoring the red flags that signal

trafficking, bribery, and visa fraud.  Perhaps most shocking to me was

the realization that other professionals who stood side by side with me

throughout that crisis were able to walk away and continue operating in

the same fashion in other countries.

    As I became increasingly aware of these problems, I knew I would

never again be able to work in an agency and be responsible for families

and children until practices improved.  I became convinced that adoption

needed an entity that was free of the financial interests that encourage

bad practices, and so I resigned and 6 months later I founded Ethica.  I

have also parented several children, including two sons adopted

internationally.  And in 2003, I was invited to The Hague, where I

researched and wrote the first draft of an implementation manual of the

Adoption Convention.

    Adoption is one of the most unregulated industries in America today,

and as a parent and an adoption professional, I don't use that word

lightly, but adoption is big business and regulation hasn't changed with

the times.

    Recently Ethica, in cooperation with the National Association of

Attorneys General, conducted a survey on adoption regulation, and while

the full report is still in progress, the preliminary data shows that only

three States require specific licensure for international adoption.  Only

two require that agencies provide educational background information on

their overseas employees.  The reality is that most States did not

acknowledge the vast differences between adoption from foster care and

international adoption.  One area that is greatly impacted by this is post-

placement monitoring.  In adoption from foster care, a family might have

lengthy visits with a child and a long post-placement period before

adoption, and so regulations generally only require monitoring until an

adoption is finalized.  But a family adopts internationally, they might

find themselves the legal parent of a child within hours of their first

meeting.  There is virtually no time to assess the rightness of the

placement and no guarantee the foreign staff has any child welfare

training.  These parents return to the State with a finalized adoption and

no post-placement monitoring.  Some States, however, require that

adoptive parents readopt the child, because the State doesn't recognize

the foreign adoption decree.  And in those States there is more

opportunity for monitoring, because regulations can be applied to parents

adopting internationally.

    The lack of appropriate regulation in adoption today means that the

driving force between decisions and policies is often the market and not

the best interest of children.  Too often an adoption is done in the best

interest of the adoptive parent.  And while we all recognize that the child,

and sometimes birth and adoptive parents are victimized by this, Ethica

also recognizes that there can be a fourth victim, adoption agencies who

try to operate in the best interest of children.  There is sadly too many

agencies that cut corners in ways that are dangerous, as we have seen

today, and they should be stopped.  But there are other agencies that

acknowledge that more services are needed than are mandated by law.  If

an adoption agency were to place an older child from Russia, for

example, and know that it is in the best interest of the child that they

monitor that family, even if the State doesn't require it, they could

choose to require the family to sign a contract, saying that they would do

post-placement monitoring, and some agencies do this.  But if an

adoptive parent has three agencies in their town who will do a home

study and only one requires post-placement monitoring, the parents are

most likely going to choose the easiest and fastest route.

    The same principle holds true for home studies.  When I did my first

home study in 1994, my agency required us to complete the same

training program required for families from foster care, which was 10

weeks of classes in addition to home study visits.  Those classes were

invaluable to me as a parent and no doubt helped my agency get a better

sense of me as well.  Since that time, however, agencies have been

moving to fewer and fewer requirements, because regulation doesn't

require them and because they are in constant competition with other

agencies that will do home studies without education, sometimes in only

3 to 4 weeks.  One has to wonder if 10 weeks of classes would have

allowed time to interview Mr. Mancuso's birth daughter, or maybe to

probe his motivations for adopting.  Likewise, we have to wonder

whether a single post-placement visit would have said Masha years of

abuse.  While I believe it is impossible for anyone to design a home

study that would be 100 percent effective in protecting children, I also

believe it would help to require that parents adopting internationally have

the same training and post-placement supervision as those adopting from

foster care.

    Some believe that the hate regulations will fix this problem, but we

are not so optimistic.  Among the many problems in the regulations, they

mandate that every parent undergo 10 hours of training, but they allow

such training to be done in the form of on-line classes or video tapes.  I

do not see how requiring Mr. Mancuso to watch 10 hours of videotapes

in his own home would have protected Masha.  The regulations also

require post-placement monitoring, but only until an adoption is

finalized.  And finally, the regulations will only apply to adoptions

between Hague countries, leaving many children, currently all those

adopted from Russia, unprotected.  By failing to adequately regulate this

industry, we do a grave disservice to children.  It is our hope that

someday that will change.  Thank you.

    [The prepared statement of Trish Maskew follows:]

PREPARED STATEMENT OF TRISH MASKEW, PRESIDENT, ETHICA, INC.

    Thank you for the opportunity to testify today. I'm Trish Maskew,

president of Ethica, a non-profit advocacy group dedicated to improving

ethics in adoption. Ethica was founded in 2002, in the wake of the

Cambodia adoption crisis, as an independent voice for reform. To

maintain our independence, Ethica does not accept monetary support

from anyone who places children for adoption.

    Before founding Ethica, I worked for an adoption agency and I also

served on the Board of Directors, and as interim director, of Joint

Council. When the problems in Cambodia came to light, I'd recently

been asked by my agency's director to take over the program there. In

the year that followed, I became disillusioned and shocked at the

unethical and illegal activity that some were engaged in. I entered the

world of adoption believing what I'd always heard-that most agencies

operated ethically and that there were a few bad players that were ruining

it for everyone. I no longer believe that is true. While I believe that the

vast majority of adoption professionals are well intentioned, the

unregulated environment they work in, the money that can be made, and,

most often, their concern for children and their desire to help, encourage

bad practices and lead some to employ situational ethics believing that

the end justifies the means.

    Some tried to excuse the situation in Cambodia by noting that all the

cases were cleared and only two people were convicted of illegal activity

(a subject I explored in depth in an article entitled "Child Trafficking and

Intercountry Adoption: The Cambodian Experience, Cumberland Law

Review, 2005) but the truth is that agencies were falsifying homestudies,

bending the rules, and engaging in willful blindness, ignoring the red

flags that signaled trafficking, bribery and visa fraud. Perhaps most

shocking to me was the realization that other professionals who stood

side by side with me through that crisis were able to walk away and

continue operating in the same fashion in other countries. As I became

increasingly aware of the problems, I knew that I would never again be

able to work in an agency, and be responsible for families and children,

until practices improved. I became convinced that adoption needed an

entity that was free of the financial interests that encouraged bad

practices. I resigned and six months later, I founded Ethica.

    I've parented several children, including two sons adopted

internationally. In 2003, I was invited to The Hague where I researched

and wrote the first draft of an implementation manual on the adoption

convention.

    Adoption is one of the most unregulated industries in America today.

As a parent and an adoption professional, I do not use that word lightly,

but adoption is big business and regulation has not changed with the

times.

    Recently Ethica, in cooperation with the National Association of

Atttorneys General, conducted a survey on adoption regulation. While

the full report is still in progress, initial data shows that only three states

require specific licensure for international adoption. Only two require

that agencies provide educational background information on their

overseas employees. The reality is that most states do not acknowledge

the vast differences between adoption from foster care and international

adoption.

    One area that is greatly impacted is post-placement monitoring. In

adoption from foster care, a family may have lengthy visits with the child

and a long post-placement period before adoption, and so regulations

generally only require monitoring until finalization. But when a family

adopts internationally, they may find themselves the legal parents of a

child within hours of their first meeting. There is virtually no time for the

parents to assess the rightness of a placement, and no guarantee that the

foreign staff has any child welfare training. These parents return to their

state with a finalized adoption and no post-placement monitoring.

    Some states do require that the adoptive parents re-adopt a child

because the state does not recognize the foreign adoption decree. In those

states, there is more opportunity for monitoring because regulations can

be applied to internationally adopting parents.

    The lack of appropriate regulation in adoption today means that the

driving force behind decisions and policies is often the market, not the

best interests of children. Too often, an adoption is done in the best

interests of the parent. And while we all recognize that the child, and

sometimes birth and adoptive parents, are victimized, Ethica also

recognizes that there can be a fourth victim-adoption agencies that try

to operate in the best interests of the child.

    There are sadly too many agencies that cut corners in ways that are

dangerous. Yet there are other agencies that acknowledge that more

services are needed than are mandated by law. If an adoption agency

places an older child from Russia and knows, unequivocally, that it is the

best interests of the child to monitor that family even though the state

doesn't require it, they could choose to require the family to sign a

contract mandating post-placement monitoring. Some agencies do. But if

an adoptive parent has three agencies in their town that will do

homestudies and only one agency requires post-placement services, the

parents will most likely choose to go the least expensive, easiest route.

    The same principle holds true for homestudies. When I did my first

homestudy in 1994, my agency required us to complete the same training

program required for families adopting from foster care--10 weeks of

classes in addition to homestudy visits. Those classes were invaluable to

me as a parent, and no doubt helped my agency get a better sense of me

as well. Since that time, however, agencies have been moving to fewer

and fewer requirements because regulation doesn't require them and

because they are in constant competition with other agencies that will do

homestudies without education, sometimes in only 3-4 weeks.

    One has to wonder if 10 weeks of classes would have allowed time

to interview Mr. Mancuso's birth daughter, or to probe his motivations

for adopting. Likewise, one has to wonder whether a single post-

placement visit would have saved Masha years of abuse. While I believe

it is impossible for anyone to design a homestudy that would be 100%

effective in protecting children, I also believe that it would help to

require that parents adopting internationally have the same training and

post-placement supervision as those adopting from foster care.

    Some believe that the Hague regulations will fix the problem. We are

not so optimistic. While the regulations mandate that every parent

undergo ten hours of training, they allow such training to be done in the

form of online classes or videotapes. I do not see how requiring Mr.

Mancuso to watch ten hours of videotapes in his own home would have

protected Masha.

    The regulations also require post-placement monitoring only until an

adoption is finalized. And finally, the regulations will only apply to

adoptions between two Hague countries, leaving many children,

currently including all those adopted from Russia, unprotected.

    By failing to adequately regulate this industry, we do a grave

disservice to children. It is our hope that someday that will change.

    MR. WHITFIELD.  Thank you, Ms. Maskew.  Now, I understand that

you may or may not have to leave before we finish, so if you do, we will

understand and thank you for being here.  Mr. Rolsky, you are

recognized for 5 minutes for your opening statement.

    MR. ROLSKY.  Thank you, Chairman Whitfield and Ranking

Member Stupak.  I am pleased to be here to talk to the subcommittee

about exploitation of children, and I hope the hearings will result in the

goal of helping promote safe, loving and permanent homes for all

children.  I am going to address today something about the Joint Council

on International Children's Services, what the Council believes and

specific areas of home study preparation and post-placement services in

adoption and how these definitions have evolved over the years,

interstate adoption standards and lastly, the importance of post-

placement and post-adoption reporting.

    I have a Masters Degree in social work from the University of

Pennsylvania.  I have been working in the field of mental health and

adoptions for over 35 years.  I am currently the Executive Director of

Golden Cradle Adoption Services, who serves both domestic and

international adoptions, and we are located in Cherry Hill, New Jersey,

which, I guess, says something about some of these issues.  I am also a

recent member of the Board of Directors of the Joint Council on

International Children's Services and last year was chair of the Ethics

Committee, whose job was to establish standards of practice, to revise

and establish new standards of practice for our member agencies.

    JCICS has been involved in international child welfare since 1976

and over that time has developed an appreciation of the complexity

related to the processes and approaches that serve to protect children

while hopefully meeting their needs of permanency, safety, and love. 

Collectively, we have over 240 members and those organizations serve

approximately 80 percent of all the international adoptions in the United

States.  JCICS, as a value, believes that all children need to have a

permanent home, deserve to have permanent, loving homes when the

child cannot be safely cared for by their birth families, or in permanent

adoptive homes within their country of birth.

    We believe that inter-country adoption can be a positive option for

these children.  It is one of the largest child welfare organizations around

and the mission is to advocate on behalf of children in need of

permanent, safe, loving homes, promote ethical child welfare practices,

strengthen professional standards, and educate adoptive families, social

service professionals and government representatives throughout the

world.  International child welfare agencies, child advocacy groups,

parent support groups, and international medical clinics choose to be

members of the Joint Council.

    All of our member agencies are required to subscribe to and establish

standards of practice which is designed to protect the rights of children,

above all else, as well as birth parents and adoptive parents.  Some of the

definitions of the things that we have been talking about today have

changed over the years, especially since the 1990s, when this incident

occurred and I just want to address that.  Post-placement services today

is defined by, as a result of the Hague Treaty; it means services to the

child and the family from placement through finalization.  Post-adoption

services, which was referred to today without a definition, basically

means services after the finalization to that family and that child.

    Prior to the Hague Convention on the Protection of Children and Co-

Operation in Respect of Intercountry Adoption, there was little

differentiation between those two definitions.  All services after the

placement of the child, whether finalized or not, were considered post-

placement services.  Every State, country, and commonwealth creates

and enforces the post-placement requirements for the adopting families. 

The purpose of this is always to ensure the safety, well-being, and

optimal development of the child.

    The most usual consequences of a family's failure to meet post-

placement requirements, which means the mandated ones, can ultimately

be the removal of the child from the home by the adoption agency, and I

want to clarify that that is when it is a post-adoption service mandated by

State law.  Post-adoption, there is no consequence that is backed up by

law.  Home study is the education and investigative process that

determines the suitability of a family for the placement of a child.  As in

post-placement services, every State creates its own specific standards,

but they are all looking to ensure that the family will provide a home that

is safe, loving and caring.

    Just as an example, New Jersey, which is one of the, whether for

good or evil, today obviously, is one of the more stringent, highly-

regulated States when it comes to specifying issues around adoption,

requires--and it was mentioned earlier--four references; one neighbor,

one person who knows them for more than 5 years, one employer, and

one other.  No family members can be a reference.  Other States,

Pennsylvania requires three and they don't specify much more beyond

that.  Interstate--JCICS's standards of practice have been submitted for

the record and you have them there, require all agencies to be licensed in

the State which they incorporated.

    Many agencies, to facilitate working across State jurisdictions, have

inter-agency service agreements.  In New Jersey, a licensed agency is

required to have an interstate adoption agreement, or we call it a service

agreement.  If my agency in New Jersey works with a family in

Pennsylvania, we are required to have a written service agreement, it is

not a contract, it is a service agreement, with the Pennsylvania agency

who is licensed to do those services in that State.  In addition, we have to

get a copy of their license.

    In particular, post-placement supervision, in this kind of a situation,

would have to be done with a licensed Pennsylvania agency when it is

interstate with these two States.  The frequency and the content and the

specifics of the post-placement report would be governed by the most

stringent of the State's requirements.  For instance, when we do a

placement of a child for a family in Pennsylvania, the home study has to

meet Pennsylvania and New Jersey requirements.  New Jersey

requirements are more stringent.

    The other thing that wasn't mentioned today but needs to be looked

at is re-adoption.  Re-adoption is something that most families, certainly

back then, would have done, and that would have fallen under the State

of Pennsylvania's requirements.  When re-adoption is required, the

county judge makes a statement as to how many post-placement visits

need to be done.  The weakness here, though, is there was no State

definition of what that should be.  Some counties will just say just give

me the papers; others will say I want all three visits.  I want it just like

the full adoption.  There is no consistent legal process for re-adoption in

any State, I might add, and the trend is to make them easier.

    The country of origin also has post-placement requirements; we have

heard about that.  Over the period of time that we have been talking

about it, they vary from two to four visits from Russia over a 1 to 4-year

period.  Because the adoption is finalized in the country, when they come

here, there is no legal backing for an agency, for an individual or

whatever, to require, enforce except through the contract that they

signed, the post-placement supervision.

    I won't go into the details, but you probably already heard testimony

about Ukraine and Russia's problems with unfulfilled post-placement

reports.  JCICS has been strongly trying to get involved with these two

countries to try to do some enforcing, getting to the agencies and so on,

but at this point, we haven't been given that information to do it.  But

certainly, JCICS has offered their resources in that regard.

    I just want to, since I am way over, on behalf of all the members and

all the colleagues in the adoption community, I think, I know we

appreciate the Congress's interest in this and especially the

subcommittee, to try to give us some resources, some tools in order to

enable us to provide the kind of safety net that is required and necessary

for children who come here from other countries.  It wouldn't hurt, at the

same time, to encourage all the other States who have very lax adoption

laws, to raise to a standard, to rise to a standard that would be a real

protection to children today.

    [The prepared statement of Jared Rolsky follows:]

PREPARED STATEMENT OF JARED ROLSKY, BOARD MEMBER, JOINT

COUNCIL ON INTERNATIONAL CHILDREN'S SERVICES

    Chairman Whitfield, Ranking Member Stupak, Members of the

House Subcommittee on Oversight and Investigations, thank you for

providing me with an opportunity to share our experience and

recommendations on best practices in  the international adoption field.  

    I am pleased to be here today and hopeful that the Subcommittee can

take action against the exploitation of children and help promote safe,

loving and forever homes for all children.

    Today, I will address who Joint Council on International Children's

Services is and what we believe; the specific areas of home study

preparation and post placement services in adoption and how the

definitions have evolved over the years; interstate adoption standards;

and lastly, the importance of post placement reporting.

Introduction

    I received a Masters Degree in Social Work from the University of

Pennsylvania in 1968.  I have worked in the field of child and family

mental health and domestic and international adoptions since that time.  

I have been the Executive Director (Chief Executive Officer) of Golden

Cradle Adoption Services since 1997.  Golden Cradle Adoption Services,

established in 1980, is a provider of both domestic and international

adoption services, located in Cherry Hill, New Jersey.

    I am on the Board of Directors of the Joint Council on International

Children's Services (JCICS) and the Chair of the Ethics Committee

whose job is to establish Standards of Practice for our member agencies.

Through our involvement in international child welfare since 1976,

JCICS has developed an appreciation of the complexity related to the

processes and approaches that serve to protect children while

expeditiously meeting their need of finding permanency, safety and

love.  Collectively our members, over 240 organizations, serve

approximately 80% of all international adoptions in the United States. 

JCICS believes that all children - regardless of race, ethnicity, gender,

medical limitations or other conditions - deserve a permanent, safe and

loving home. When children cannot be safely cared for in their birth

families, or in permanent adoptive homes within their country of birth,

we believe that ethical intercountry adoption provides the most positive

option for children. 

    As one of the oldest and largest child welfare organizations, Joint

Council on International Children's Services is the lead voice on

intercountry children's services.  With a mission to advocate on behalf of

children in need of permanent, safe and loving families, Joint Council

promotes ethical child welfare practices, strengthens professional

standards and educates adoptive families, social service professionals

and government representatives throughout the world.  International

child welfare agencies, child advocacy groups, parent support groups and

international medical clinics choose membership in Joint Council as a

means to address the critical issue of parentless children and creating

permanent solutions and promote best practices in our field. Joint

Council Member agencies subscribe and are held to an established

Standards of Practice, designed to protect the rights of children above all

else, as well as birth parents, and adoptive parents.

Post Placement Reports and Home Studies

    I would like to address the specific areas of home study preparation

and post placement services in adoption.  Some of the definitions have

changed over the years.  As of 2006:

    Post Placement Services means those services provided to the

adopting family and placed child from physical arrival of the child in the

adopting household until legal finalization of the adoption.

    Post Adoption Services means those services provided to the

adopting family and placed child after the legal finalization of the

adoption

    Prior to The Hague Convention on Protection of Children and Co-

Operation in Respect of Intercountry Adoption, there was little

differentiation between the two definitions above.  All services after the

placement of the child, whether finalized of not, were considered post

placement services.

    Every country, state and commonwealth creates and enforces the

post placement requirements for adopting families.  The purpose of this

is to ensure the safety, well being and optimal development of the child. 

The most usual consequence of a family's failure to meet post placement

requirements can ultimately be the removal of the child from the home

by the adoption agency.

    Home Study is the education and investigative process that

determines the suitability of a family for the placement of a child in their

home/family.  As in post-placement services, every state creates its own

specific standards but they all are looking to be sure that the family and

home will provide a safe, caring and loving environment for the child.

Interstate adoption standards:

    JCICS Standards of Practice, which have been submitted for the

record, require all agencies be licensed in the state in which they are

incorporated and in which they do their business.  Many agencies, to

facilitate working across state jurisdictions, have inter-agency service

agreements.  This means that a New Jersey licensed agency, in order to

place a child with a Pennsylvania family will work with a Pennsylvania

licensed adoption agency.  This arrangement is also required by New

Jersey adoption regulations.

    In particular, the post placement supervision would have to be

conducted (based on the above mentioned written service agreement)

with a Pennsylvania licensed agency.  The frequency, content and other

specifics of the post placement report would be governed by the most

stringent of the state requirements.  The only exception to this is if the

placement is already finalized (as is common in international adoptions). 

In that situation the sending county and the state where the family lives

would determine the frequency content, etc. of the post placement

supervision.

    Re-adoption is used in International Adoptions to obtain a birth

certificate from a US state which is then used to obtain US citizenship

for the child.  This was the process used for international adoption

placements before the United States changed the law granting citizenship

based on the Child Citizenship Act of 2000 (H.R. 2883), which was

signed into law on October 20, 2000.  In January 2004, U.S.

Citizenship and Immigration Services launched the Certificate of

Citizenship Project which automatically issues certificates to

children entering the United States on an I.R. 3 visa.  Prior to this

federal law change re-adoption was frequently used by families who

adopted internationally.  Under current U.S. Citizenship and Immigration

Services regulations, children who were not seen by all relevant parents

prior to their overseas adoptions are not considered to have full and final

adoptions.  They must be re-adopted in the State where they will be

residing.

    Despite the frequency of re-adoption, there has been no consistent

legal process used to achieve this end.  Pennsylvania State regulations

still do not address this issue.  Individual county courts (who do the re-

adoption) have differing requirements which can include no post

placement supervision to a full schedule of visits, similar to a domestic

adoption, which consist of 3 visits over a 6-month period.

    The country of origin also has a post placement requirement.  Russia,

since 1997, has required from 2 to 4 visits over a 1 year to 4-year period. 

When this is done for the country of origin it is conducted voluntarily by

the family, as there is no US legal requirement for them to carry through. 

The adoption is already finalized and the agency can only cajole and

appeal to their commitment to the best interest of this and other children

who might come to this country.  This has been a concern to both

agencies and sending countries as there has been a number of families

who have refused to allow post placement visits after returning to the

US.  Despite their being told in writing and verbally of the need, some

just refuse. 

    Many sending countries have expressed concerns over the missing

post-placement reports and have taken action by limiting the

accreditation of agencies who can work in their country, closing regions

of their country to adoption and limiting the number of placements of

intercountry adoptions.  The Ukraine government has voiced their

concern over missing post placement reports from 900 children out of the

4,907 that were adopted from that country between 1996 and 2004. 

Russia is also concerned over the alleged approximate 1,700 missing

reports from the 45,034 children adopted from their country between

1996 and 2005.

    JCICS strongly encourages adoptive families to comply with their

agency's and the child's country of origin required post-placement

reports.  These reports are becoming increasingly more important as

many foreign officials assume the worst if they do not receive a report

and are left wondering what happened to the child. Furthermore, failure

to comply with these requirements can negatively impact other

intercountry adoptions from that country.  JCICS has been working very

closely with the U.S. Department of State and the foreign countries to

explore solutions.  JCICS also has specific information on our website

educating and encouraging families to complete their post placement

reports. 

    These post placement services should provide counseling for the new

family, observe the child's adjustment to the new home, and supply

parents with information and referrals that might be needed for an

optimal family adjustment. Many foreign countries also require post-

placement supervision for six months to four years to ensure that the

child has been well-placed and is receiving adequate care and love. For

this reason, agencies may ask parents to furnish photographs, written

reports and medical reports to send to the child's country of origin. As

part of post placement, many agencies have organized support and

education groups for new adoptive parents.

Conclusion

    On behalf of our members and colleagues in the adoption

community, I would like to convey our appreciation for the interest and

support from the U.S. Congress, and especially this subcommittee, on

ethical intercountry adoption and best practices in the child welfare field. 

Providing a loving, safe family for children in need around the world

must be a priority of the U.S. Government and a priority for all of us, as

citizens of a global community.  With your assistance, we hope that more

children around the world will find the safe, permanent families they

deserve. 

Thank you very much for allowing me to appear before the

subcommittee today. I would be happy to answer any questions you may

have.

    MR. WHITFIELD.  Mr. Rolsky, thank you and we appreciate your

testimony.  I am assuming both of you and your organizations, perhaps,

would you support an effort at the Federal level to provide some Federal

standards for adoption of children internationally?

    MR. ROLSKY.  Yes.

    MS. MASKEW.  We would welcome them, actually.

    MR. WHITFIELD.  Okay.  So you see it as a significant need?

    MS. MASKEW.  Yes.

    MR. WHITFIELD.  Okay.  Now, I found it a little bit interesting that

the parents are, the adoptive parents, are the ones that appear to be

responsible for paying and selecting the agencies that do the home

placement and the post-placement.  Is that normally the practice?  I

mean, it appear to me that someone, some other agency should have that

responsibility of selecting the agency to do the study.  Am I wrong

about?

    MS. MASKEW.  The standard practice is that parents choose their

agencies and the people who do their home studies.

    MR. WHITFIELD.  Why is that?  I mean, it looks like that if they are

the one paying directly for the home study, there is every incentive for

the home study to be good.

    MS. MASKEW.  I would agree that that is probably a problem.  I

mean, one of the things that we hear continuously from social workers is

that it is very difficult for them to deny somebody a home study.

    MR. WHITFIELD.  Yes.

    MS. MASKEW.  Because if they do, people--if they don't have a very

good, solid, say based on a police record or something, then they can

actually be sued for not--

    MR. WHITFIELD.  Yes.  I mean, it just appears that, in this Federal

legislation, if we can do it, there will be some other mechanism for

selecting the group to do the study.  Would you agree with that, Mr.

Rolsky?

    MR. ROLSKY.  I think we would get accused of steering people to

agencies and then the whole other issue of whether we have under--

agreements and kickbacks would be an issue of the kind of--as long as

they are going to a licensed agency, that should be the requirement.

    MR. WHITFIELD.  Yes.

    MR. ROLSKY.  The problem is that licensing across States is not

equal.

    MR. WHITFIELD.  I must say that the panel, the first panel with Ms.

Smith and her firm, didn't give anyone any confidence that anything was

being done in a significant way to protect the child.  You all heard the

testimony.  Did you come away with that same feeling or not?

    MR. ROLSKY.  Well, by New Jersey standards, they were not met. 

New Jersey standards were not met in much of what was discussed

today.

    MR. WHITFIELD.  Yes.  Well, I am surprised that New Jersey hasn't

taken some steps to take their license away from them.

    MR. ROLSKY.  That surprises me, too.

    MS. MASKEW.  We would actually like to address that.  We did this

survey with the National Association of Attorneys General and one of

the things that we have been looking at is how many complaints do

licensing entities get and how many people can they discipline and the

States that responded to the NAAG survey almost uniformly said they

get complaints that they can't do anything about because it is not in the

specific licensing standard.  They have to be able to point to a standard

and say this was violated.

    MR. WHITFIELD.  Oh, okay.

    MS. MASKEW.  And so those standards don't address the most

common problems.

    MR. WHITFIELD.  How many adoptions would you say normally or

on the average, occurs each year where an American citizen is adopting a

child from another country?  What is the total number?

    MS. MASKEW.  I believe it is about 22,000 now.

    MR. WHITFIELD.  Twenty-two thousand per year?

    MS. MASKEW.  Yes.

    MR. WHITFIELD.  Okay.  Mr. Stupak, you are recognized.

    MR. STUPAK.  Thank you, Mr. Chairman, and thank you for staying

with us this afternoon.  Can anyone open an adoption agency?

    MS. MASKEW.  Pretty much, yes.

    MR. STUPAK.  And there are no requirements, no qualifications?

    MS. MASKEW.  Well, there are requirements for people to have

certain qualifications to hold certain positions.

    MR. STUPAK.  Okay, but if I want to open one, I can go open one?

    MS. MASKEW.  Yes, if you were to hire a supervisor or an executive

director that has the qualifications that are required by law, then pretty

much anybody can be the principle that opens it.

    MR. STUPAK.  Okay.  And Mr. Rolsky, do you want to say anything

on that?

    MR. ROLSKY.  Well, I don't think it is quite that simple.  New Jersey

has very specific requirements as to who the staffing has to be.

    MR. STUPAK.  Right.

    MR. ROLSKY.  Pennsylvania does not.  I mean, it is so variable and

that is where the problem is.

    MR. STUPAK.  Okay.

    MR. ROLSKY.  I make jokes sometimes that a plumber can run an

agency in Pennsylvania.  It cannot happen in New Jersey.  I am not

holding up New Jersey as the highest paragon, but compared to

Pennsylvania--

    MR. STUPAK.  But even in New Jersey, if they had standards, we just

saw here today if there is no enforcement of those standards because

there are no guidelines or base line on which to judge against to

determine there is a violation, how do you enforce anything?  And there

is really no way to do it.

    MR. ROLSKY.  We get bi-yearly, every other year visits from our

regulators.  They read our records, they point out stuff that we might be

not doing correctly.

    MR. STUPAK.  Sure.

    MR. ROLSKY.  We have never been denied a license, we have to

remediate.  It is minor stuff.  I am shocked that--because the stuff that

was testified to today is blatant.

    MR. STUPAK.  Yes, it is.

    MR. ROLSKY.  I don't know where that fell apart.

    MR. STUPAK.  Give me an example of what was blatant here today.

    MR. ROLSKY.  They were operating without a license.  They did a

post-placement report in a State that they couldn't do.  They had no

service agreement with a home study agency, with an agency to do a

home study.

    MR. STUPAK.  And one of the reports was fraudulent.

    MS. MASKEW.  And those are the kinds of things that are routinely

covered by regulation, so there should have been some way to--it is

possible that DYFS doesn't know.

    MR. STUPAK.  So if we were looking for a State that had the best

adoption rules and regulations, whether it be domestic or international,

which State would that be if we wanted to look at a model as we draft

legislation?

    MS. MASKEW.  Right now, Florida is redoing theirs.  They have been

the most active in disciplining agencies, to our knowledge, and they have

sought input from us and from others on how to tighten their regulations

up.  They are having problems with the fact that people can then--they

actually took a license away from somebody who then crossed the State

line into Georgia and got another license.

    MR. STUPAK.  Do you think, Ms. Maskew, do you think the Joint

Council's standards of practice and disciplinary policies will be strong

enough to weed out the bad agencies or will they just run over to another

State?

    MS. MASKEW.  I think they are stronger than they used to be, after

the rewrites that we participated in last year with them.  But the problem

is that they are not strong enough, if you will, to really regulate the kind

of problems that we need because even if all the Joint Council agencies

were to follow those, all the ones who aren't members of Joint Council,

if they don't, they still have that race to the bottom, which is a problem

for agencies as much as it is for children and families.

    MR. STUPAK.  Mr. Rolsky, do you agree with that?

    MR. ROLSKY.  Yes.

    MR. STUPAK.  Because you are from New Jersey and know both

New Jersey and Pennsylvania adoption law.  Can you tell us what is

wrong with a New Jersey licensed social worker doing a post-placement

for a Pennsylvania family?

    MR. ROLSKY.  Well, there are two issues.  A New Jersey licensed

social worker cannot do social work in Pennsylvania unless they are

licensed in Pennsylvania.  That is a licensing board issue.

    MR. STUPAK.  Right.

    MR. ROLSKY.  And the other part is that you need a license in

Pennsylvania, an adoption license to do adoption work in Pennsylvania. 

I mean, it is very organized in that regard, so we can only do adoption

services within the State in which we are licensed, period.  I mean, that is

not unique to Pennsylvania.  That is the way it is.  I am sorry, New

Jersey.

    MR. STUPAK.  Well, let me ask you this.  When a child is in a State

that has a re-adoption requirement, and I think Pennsylvania did here,

right?  A re-adoption requirement?

    MR. ROLSKY.  Re-adoption is voluntary and certainly, back then it

was used in order to obtain American citizenship and it was the only way

to get citizenship.

    MR. STUPAK.  Re-adoption?

    MR. ROLSKY.  Yes.

    MR. STUPAK.  Okay, by today's standards, if I internationally

adopted a child, in order to get a U.S. certificate, do I have to get--I

mean, birth certificate, do I have to get a re-adoption?

    MR. ROLSKY.  No.  If you went to that country, saw the child before

the adoption was finalized, you would then come back to this country

and based on the law that was just changed, the citizenship law of 2000,

the child becomes a citizen upon landing in this country.

    MR. STUPAK.  Okay.

    MR. ROLSKY.  No further supervision of any kind is necessary for

that.  So families do not have to do re-adoption.

    MR. STUPAK.  Based upon the citizenship law of what?

    MR. ROLSKY.  Of 2000.

    MR. STUPAK.  2000.

    MR. ROLSKY.  There is a specific citation number in my written

testimony.

    MR. STUPAK.  There is a lack of memory here or whatever you want

to call it today, from our witnesses, but in this case here, who should

have notified Pennsylvania that Masha was in the State and who would

be responsible for making sure the re-adoption requirement is

completed?

    MR. ROLSKY.  It is the placing agency's responsibility to notify the

home study agency when the placement is made.

    MR. STUPAK.  So in this case, New Jersey should have notified

Pennsylvania?

    MR. ROLSKY.  Yes.

    MR. STUPAK.  Okay.

    MR. ROLSKY.  That is a best practice issue.  I don't think it is a

regulation.

    MR. STUPAK.  Right, I don't think it is a regulation.  Well, under

State re-adoption statutes, if they have them, home visits and reports can

be required after placement, but it is my understanding that these sort of

requirements to do this are basically being abolished and why is that?

    MS. MASKEW.  Most States are moving toward laws that make it

easier for adoptive parents to adopt and this is an extra step that many

consider unnecessary because of the immigration regulations that are in

effect for international adoptions and so certainly, the most well-

organized lobby, if you will, is the agency lobby and I think that this is

something that--and even attorneys that do independent adoptions, it is

something that they continue to--the standards continue to move and we

see this across the board, even in domestic adoption.

    MR. ROLSKY.  I think we shouldn't ignore the other lobby, which is

parents who want to adopt.  They are wanting to go through fewer hoops

and they are not an insignificant factor.  They all vote.  Agencies don't

vote.  I mean they are not part of a constituency in that regard and they

are a very forceful voice for modifying some of the requirements.

    MR. STUPAK.  And it seems to me, though, since I have been here,

we have had a number of bills where they want further tax breaks for

adoptions and then things like that, which, I don't think anybody has any

problem with that, but shouldn't they, before they have a chance to

receive that financial benefit, if you will, shouldn't there be some things

like post-adoptive reports being filed with somebody and proof of filing

the State law or certification or something?  I mean, how many children

are adopted and we don't hear from them again in the United States?  Is

this a problem?  I am talking about international.  I mean, not hear from

again.  How do you track after a year, 2 years, 3 years?

    MR. ROLSKY.  It is voluntary, I think.

    MS. MASKEW.  It is voluntary.

    MR. ROLSKY.  Yes.  They come to picnics, the families come to

educational programs or they run into a problem and they need resource,

help with finding resources.

    MR. STUPAK.  Okay.

    MS. MASKEW.  I would say, too, that I think the families that ask for

minimum requirements are those who expect that someone's out there

watching the hen house and when they find out that there isn't somebody

protecting them, certainly the people that all come to us are always

asking how come we don't have more regulation, so I think that probably

goes both ways.  I think there is a general perception among the public

that somebody is doing this.

    MR. STUPAK.  Right.  I mean, we were shocked at the answers we

were hearing today.

    MS. MASKEW.  And they don't find out until they are in a problem,

until they call us in the middle of the night from Russia.

    MR. STUPAK.  Not that we got a lot of answers today, but I mean, do

either of you see any interest by the State Department or Immigration

Service to impose post-placement reports as a legal requirement?  I

mean, from what I am getting, you are seeing just the opposite, less post-

placement.

    MR. ROLSKY.  We just went through this with The Hague.  There

was no indication that--I mean, I don't know if anybody raised it.  I was

certainly not part of those negotiations, but it certainly didn't come out in

any of The Hague standards, The Hague regulations from the State

Department.

    MR. STUPAK.  Have you known--like, Russia is not one of The

Hague signators to that agreement, so that agreement would not cover

them.  Have you known of any countries come back and say we want this

child back because you have not followed proper procedure or things like

this?

    MS. MASKEW.  Actually, Russia is a signatory.  They just haven't

ratified yet.

    MR. STUPAK.  Okay.

    MS. MASKEW.  But the countries that have tried and that have come

to The Hague conference and asked for this, there are standards of

international law that once an adoption is finalized there are privacy

concerns and all kinds of things that make it very difficult for the Federal

government to impose that and to force anybody to do it, so it is a

problem with post-placement issues.  But I think, as a whole, what we

have seen, and I think if there is one thing I could say that we need in this

country, is the political will to regulate this industry.  We just don't see

that.  And when The Hague regulations came in which--and we

submitted our comments along with my testimony today, in every

opportunity that they had to choose between standards that were more

lax or things that parents have asked for, they chose to go with the things

that were more favorable to agencies.  We were very disappointed with

the regulations.

    MR. STUPAK.  I see my time is up.  Thank you and thank you again

for being with us today.

    MR. WHITFIELD.  I just have one other question.  You said there are

about 22,000 of these adoptions a year, roughly, and what would you say

the average fee is for an adoption agency?  Does it range--I mean,

Mancuso paid the agencies involved here around--I am not talking about

the Russian part of it, around $5,000 or $6,000, I would say.  What

would you say the average fee is for an agency?

    MS. MASKEW.  I think that is pretty for the agency fee.

    MR. WHITFIELD.  Okay.

    MS. MASKEW.  The overseas fee can be $20,000 and up.

    MR. WHITFIELD.  Well, then what that amounts to, that is about $132

million a year industry that basically is unregulated, at the Federal level,

certainly, and which says a lot, I think.  But thank you all so much for

your testimony, for being here and you all are excused.  And I want--of

course, I ask unanimous consent or without objection to enter into the

record all documents of this hearing, subject to committee staff

redactions.  Also and without objection, I would like to enter Dr.

Hernandez's report from yesterday's hearing into the record and also

documents at the hearing on September 21st that were held on the

financial industry's efforts to combat on-line child pornography and the

record will remain open the requisite 30 days.  And is there any objection

to that?  Okay.

    MR. STUPAK.  The only question we would have is you are going to

place the documents in the proper hearing or are you just going to put

them all in this one?

    MR. WHITFIELD.  In the proper hearing.

    MR. STUPAK.  No objections, then.

    [The information follows:]

&lt;GRAPHICS NOT AVAILABLE IN TIFF FORMAT&gt;

    MR. WHITFIELD.  This hearing is adjourned and thank you all again.

    [Whereupon, at 5:15 p.m., the subcommittee was adjourned.]

2006 Sep 27