How is the government alerted to food stamp fraud (qualified answers only please)?

Question

I've got a family member who was approved for food stamps while homeless and unemployed several months ago. In the intervening time, she has found a job and a home, and is actually doing quite well for herself. Her benefits expired in November (they require renewal, which she has chosen not to pursue because she says she makes enough money now), but during the period between June and November she continued to receive benefits without alerting the government to her changed financial circumstances. I don't think she did it intentionally, but I'm still worried she might somehow get in trouble for not telling them she found a job. 

I know there are people out there who trade food stamps for drugs or sell them for money - but in her situation (considering her account is closed and she has no intention of renewing), what are the chances she'll get caught/in trouble for not alerting them? And if she is caught, what sort of trouble is she facing?

Thanks.

WW - BHN · Accepted Answer

Simplified reporting is in effect in most states.
She only had to report the income if it were over the limits and would close her case.
http://www.fns.usda.gov/snap/rules/Memo/Support/State_Options/9-State_Options.pdf


If that happened, and she used the food stamps, with the wonderful smaller government we have, no one has time to investigate some little fraud case worth less than $1000.

If she applies with the next year, they may process an overpayment, and whe will have to repay it.

? · Answer

A person is required to report any changes that affect their benefits within ten days of knowing of the change. If it comes to the attention of the office that issued the food stamp benefits that she was not entitled to the food stamps, or to a lesser amount of benefits, and she is no longer on food stamps, an over-payment letter will be issued. Here's the kicker: the over-payment can only be collected in food stamp benefits. Say that she is still receiving food stamps and the amount she received at an earlier date was $300.00 over what she qualified for. The letter would state that her future food stamp benefits would be reduced by a certain amount each month to recoup the over-payment. If she is no longer on food assistance then any recovery will go into effect if she ever reapplies for the same benefits. Her electronic file will be flagged for over-payment, in other words. The chances that any legal action will be taken are about zero. First the department would have to prove "intent to defraud" and secondly, the cost of pursuing any such action would probably be greater than the actual cost of the over-payment. I worked with the Department of Social and Health Services in my state for fifteen years and not once did I ever see the state go after a case with the situation that you described.

Just David · Answer

If an American taxpayer uses food stamp that is fraud.

If an illegal alien criminal uses food stamp, that is charitable.

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How is the government alerted to food stamp fraud (qualified answers only please)?

3 Answers