Docs. expose apparent predatory loan scheme by Dem NM state rep.

Tara Jaramillo, a current Democrat state representative and owner of the caregiving company Positive Outcomes, Inc., is facing serious allegations of financial exploitation following a damning investigation. Jaramillo’s company, which offers home healthcare services, has come under scrutiny for a payday loan scheme that targeted its own employees, many of whom are Native American caregivers.

The company allegedly issued loans to its workers with a bi-weekly interest rate of 15%, equivalent to an annual rate of 390%, an amount far beyond New Mexico’s legal cap of 15% per year. A whistleblower identified via public records reported these unethical practices to the New Mexico Department of Workforce Solutions (NMDWS). The whistleblower’s claims highlight that Positive Outcomes, a company funded through Medicaid, profited off its workers by deducting loan repayments directly from their paychecks, sometimes driving the workers’ effective wages below the state-mandated minimum.

According to an investigation report, employees were forced to sign documents that allowed for deductions before receiving their checks. Those loans created a perpetual cycle of debt, leaving caregivers financially dependent on Jaramillo’s company. The caregivers, who already faced the challenges of low pay, ended up in a financially precarious position while working for the very company that claimed to support the vulnerable.

The whistleblower’s April 3, 2024 email to NMDWS explicitly accused Jaramillo of violating the state’s usury laws. He stated, “Charging bi-weekly 15% interest charges to the poorest people in our state that are caregivers (who are mainly Native Americans) is criminal… The company in question should be held accountable and prosecuted to the full extent of the law.” NMDWS has since confirmed these allegations as part of a directed investigation aimed at uncovering systemic wage law violations.

In a September 12, 2023, email to the state investigator Raymond Renteria, the whistleblower described the apparent loan scheme in detail and provided a list of affected employees, many of whom are former workers of Positive Outcomes. These caregivers described how they became financially entrapped by multiple loans, enduring deductions that essentially robbed them of fair compensation for their labor. Three former employees all corroborated these practices.

The findings paint a disturbing picture of Jaramillo’s use of her company’s resources and Medicaid funds to allegedly line her own pockets at the expense of the state’s most vulnerable workers. 

Raymond Renteria and his team at NMDWS are leading an ongoing investigation to determine the full extent of the alleged violations and to ensure accountability for those affected. If found guilty, Jaramillo could face severe legal consequences, including charges of usury, wage theft, and misuse of public funds.

The apparent exploitation uncovered has sent shockwaves through the state, with many calling for immediate action against Jaramillo. Community leaders and affected workers are demanding that Jaramillo be held accountable for her actions and that the state tighten regulations to prevent such abuses in the future.

Jaramillo, who narrowly won in 2022, faces a tight race against Republican past-state Rep. Rebecca Dow, who seeks to reclaim her former seat in the New Mexico House of Representatives.