Welfare Fraud Laws
Federal and state governments offer many programs designed to help people facing certain challenges, such as those who have very low incomes or are living with serious disabilities. Some notable examples include the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs managed by the Social Security Administration, as well as Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP), also known as “food stamps.”
Unfortunately, some people try to get benefits from these welfare programs to which they are not entitled. This can result in criminal charges. Someone convicted of welfare fraud may face jail time and potentially other serious consequences. If you are suspected of this offense, you should not talk to the police or prosecutors about your situation. Statements that you make in an effort to clear your name could unexpectedly come back to haunt you. Instead, you should consult a lawyer who handles fraud charges and can explore any available defenses.
What Is Welfare Fraud?
Welfare fraud usually involves lying or hiding something in communications with government agencies that manage public benefits.
Elements of Welfare Fraud
A prosecutor charging welfare fraud usually will need to show that the defendant provided false information to the government (or omitted material information) regarding their eligibility for benefits. This may involve not only the initial application but also later interactions with the government, such as failing to mention changes in circumstances that could affect eligibility. The prosecutor also must prove that the defendant acted intentionally or knowingly.
Some welfare programs restrict the ways in which a recipient may use their benefits. Knowingly violating restrictions on use also may result in a criminal charge.
Examples of Welfare Fraud
Priscilla claims that three children live in her household when she applies for SNAP benefits, which are based in part on household size. These children actually live with their other parent.
Phil receives SSDI benefits due to a serious disability that prevents him from working. A new treatment improves his condition to the point that he can start working again. Phil does not tell the SSA about this improvement and continues to collect payments.
Offenses Related to Welfare Fraud
Some other offenses that could be charged in situations similar to those supporting a welfare fraud charge include:
- Larceny: taking property from someone else without authorization and with the intent to deprive them of it
- Forgery: making or using a fake or falsified document with a fraudulent intent
- Perjury: knowingly making a false statement after formally pledging to tell the truth
- Bribery: perhaps a recipient or applicant tried to pay a government employee to turn a blind eye to welfare fraud
States that do not have a specific welfare fraud statute might charge various forms of welfare fraud as one or more of these offenses. Sometimes a defendant might face multiple charges. Plea negotiations might involve trading guilty pleas to some charges for the dismissal of others.
Defenses to Welfare Fraud
A common defense to a welfare fraud charge is that the defendant did not have a culpable mental state. A mistake made in good faith should not result in a conviction. For example, perhaps the defendant misread a question on an application, or perhaps they innocently forgot to tell the government about a change in their circumstances.
In other cases, a defendant might argue that the allegedly false statement was actually true. Perhaps the government made a mistake in reviewing the application. Another defense strategy might involve arguing that the defendant was not responsible for the false statement. Someone else in their household might have completed the application and submitted it under the defendant’s name. Or a stranger might have stolen the defendant’s information and used it to submit a fraudulent application.
Penalties for Welfare Fraud
States that have enacted laws specific to welfare fraud impose varying periods of time behind bars. These may depend on the type of wrongdoing or the amount of benefits involved. Here are the potential terms of imprisonment that a defendant might face under the main welfare fraud statute in various states:
- Arizona: 0.5-1.5 years (1 year presumptive)
- California: up to 6 months for making a false statement, or for fraudulently obtaining or retaining benefits worth no more than $950; up to 1 year, or 16 months or 2 or 3 years, for fraudulently obtaining or retaining benefits worth more than $950
- Georgia: generally up to 12 months; 1-5 years if defendant obtained over $1,500 in benefits
- Massachusetts: up to 1 year
- Michigan: up to 90 days if $500 or less in benefits involved; up to 4 years if more than $500 in benefits involved
- Nebraska: no jail time (fine only) if less than $500 in benefits involved; up to 3 months if $500-$1,499 in benefits involved; up to 2 years if at least $1,500 in benefits involved
- Pennsylvania: up to 5 years (benefits worth $999 or less); up to 7 years (benefits worth $1,000 or more)
Federal statutes governing various welfare programs also impose penalties for fraud. For example, 42 U.S. Code Section 408 describes fraud involving federal disability insurance benefits. This offense generally carries up to five years of imprisonment.
In addition to imprisonment, a defendant might be required to pay restitution to the government agency that they defrauded. They also might lose their access to this type of benefits, either permanently or for a set time.
