Penalties for Food Stamp Fraud

Welfare fraud is any intentional misrepresentation or concealment of required personal or financial information such as job or income or financial hardships to get or obtain an increase of public assistance benefits, including food stamps. If you sign papers (i.e., applications, questionnaires and recertifications) knowing that the information is not true, it is called fraud or intent to commit fraud. Fraud can be prosecuted even if you did not receive any benefits.

Investigation

The Department of Family and Children Services (DFACs) or the social services agency in your state and/or county may talk to those who are closest to you to obtain information. You can waive the right to not say anything or to have an attorney speak for you, but if you do, you will be asked questions that can be used later if you end up at a hearing or in court.

Disqualification Hearing

The social services agency handling the fraud accusation can decide to make a case for criminal prosecution with the local district attorney, or it can file a civil suit that won't get you jail time, or it can schedule an administrative hearing to determine whether or not to cut off your benefits and/or make you repay amounts that you should not have received due to the misinformation or concealment. A hearing does not keep a future criminal prosecution from happening. The agency has the burden of proof to show that you actually intended to commit fraud, so it's best to say as little as possible.

How to Prepare for a Hearing

Gather together all of your documents and witnesses that can and will support your statement that you did not willingly, willfully or intentionally withhold, misrepresent or conceal requested or required information with the intent to gain benefits to which you were not entitled. If you lose, a payment schedule may be set up for you to repay any overages or benefits to which you were not entitled. If you win, your benefit payments will go on as they have before.

Alternative Remedies to Possible Prosecution

You may choose to waive your administrative hearing. If so, you are agreeing to not only be disqualified from receiving benefits for a specific period of time and to pay back the overage or benefits that you received to which you were not entitled, but you are also opening yourself up to possible criminal prosecution as well as a reduction in benefits for the rest of your household. It may be best to agree to repay the overage and accept a reduction in benefits without admitting any intent to defraud.

Food Stamp Laws

Since laws for food stamp fraud and penalties are governed by the state and county in which the fraud occurred, they are not the same across the board. There are many online agencies that state that they can apply for food stamps for you, thus making the process easier and faster. Never use those agencies. You can apply for food stamps directly with the benefits office in your county for free and without risk of revealing private information to unscrupulous frauds that will use your information and put you at risk of criminal prosecution. If you suspect someone of food stamp fraud, hot line numbers are available in every state for reporting it.

References

• What is Food Stamp Fraud?
• Fraud and Discrimination Reporting