Mar 21, 2024

The Penalties for Selling SNAP Benefits for Monetary Gain

The Penalties for Selling SNAP Benefits for Monetary Gain: Federal Crimes and Severe Consequences

Understanding the Illegal Sale of SNAP Benefits

Selling your SNAP benefits instead of using them to buy food can seem like an easy way to get cash in a pinch. But it’s illegal and can lead to huge fines, permanent disqualification from SNAP, and even federal criminal charges.

This practice is known as SNAP trafficking. It’s a serious crime that comes with severe consequences for both recipients selling their benefits and retailers or other individuals buying them. Don’t risk your future over what seems like quick money.

It’s Considered SNAP Trafficking

When you sell your SNAP benefits for cash or non-food items, it’s considered SNAP trafficking[1].

According to the USDA Food and Nutrition Service, this is very different from typical benefit fraud.

• Fraud is lying to get benefits you don’t qualify for.
• Trafficking is exchanging SNAP benefits for cash or other restricted items.

Trafficking is considered a much more serious violation. The government comes down hard on it.

Stiff Penalties for Recipients

Criminal Charges and Disqualification Periods

If caught selling your SNAP benefits, here are the penalties you could face:

• 1st offense – 1 year disqualification from SNAP
• 2nd offense – 2 year disqualification
• 3rd offense – Permanent disqualification
• Up to 20 years in prison for trafficking $500+ in benefits
• Fines up to $250,000

According to the Farmers Market Legal Toolkit, individuals who undertake criminal activity in SNAP transactions can face fines of up to $250,000 and imprisonment for up to 20 years.

Losing SNAP for a year or longer can devastate your ability to feed yourself and your family. And a felony trafficking conviction makes life extremely difficult.

Retailers and Buyers Also Face Penalties

It’s not just recipients who get punished for SNAP trafficking.

The Pennsylvania Office of State Inspector General notes that retailers or individuals caught buying benefits also face stiff penalties like:

• 1st offense – $15,000 fine and 1 year disqualification from SNAP
• 2nd offense – $30,000 fine and 3 year disqualification
• 3rd offense – $60,000 fine and permanent disqualification
• Up to 20 years in prison for trafficking $100+ in benefits

Buying benefits can also lead to federal money laundering charges. These penalties can easily destroy a business.

How Investigators Prove Trafficking

Detection Methods and Investigation Tools

Investigators have sophisticated tools to catch trafficking.

According to the USDA’s aggressive action against trafficking, they:

• Analyze SNAP transaction data for suspicious patterns[2]
• Review security camera footage that shows illegal exchanges
• Interview witnesses who observed trafficking
• Conduct undercover operations offering to buy benefits

The USDA uses the Anti-Fraud Locator using EBT Retailer Transactions (ALERT) system to monitor electronic transaction activity and identify suspicious stores for analysis and investigation.

Once they have evidence, denying the charges rarely succeeds.

Getting Caught Accidentally

Perhaps you didn’t realize selling benefits was illegal.

Under 7 U.S. Code § 2024, here are the penalties if caught accidentally[3]:

• 1st offense – $500 fine and 1 year disqualification
• 2nd offense – $1,000 fine and 2 year disqualification
• 3rd offense – $2,500 fine and permanent disqualification

Ignorance of the law is no defense. You must educate yourself on the rules.

How Lawyers Can Help

If accused of trafficking, an experienced lawyer can help by:

• Reviewing if the investigation was done properly
• Determining if evidence proves criminal intent
• Negotiating for reduced penalties
• Building the strongest possible defense for trial

A skilled lawyer may get charges dismissed or reduced. Don’t go it alone.

Avoiding Trafficking Accusations

Prevention Tips and Best Practices

Here are some tips to avoid accidentally trafficking your benefits[4]:

• Never sell benefits for cash or non-food items
• Only use benefits to buy eligible groceries from reputable retailers
• Keep your EBT card and PIN secure
• Report any retailer or individual attempting to purchase your benefits

Following the rules prevents you from getting caught up in trafficking.

Real-Life Trafficking Examples

Think it won’t happen to you? Read these real-life stories[5]:

Tanya’s Story

When Tanya lost her job, she sold $200 of her SNAP benefits to pay her rent. She was caught and disqualified from SNAP for a year.

Miguel’s Mistake

Miguel didn’t know selling his benefits was illegal. When he traded half his benefits for cash, he was fined $750 and lost SNAP for 6 months.

Frank’s Grocery

Frank’s Grocery bought EBT cards from recipients to stock their inventory. The store paid a $100,000 fine and was banned from SNAP for 5 years.

As you can see, the risks are real. Don’t let this happen to you.

If You’re Falsely Accused

Protecting Your Rights

Sometimes recipients get wrongly accused of trafficking. Here’s what to do:

• Stay calm – false accusations happen
• Don’t get angry or defensive with investigators
• Be cooperative to show you’ve got nothing to hide
• Politely share your side of the story
• Contact a lawyer immediately to protect your rights

With an expert lawyer, you can fight false allegations. Don’t go it alone.

Avoiding Trafficking Stings

Watch out for undercover agents trying to entrap you in trafficking stings[6]:

• An agent may approach you offering to buy your benefits
• They’ll pressure you to agree to the deal
• Once you agree, they’ll move in and arrest you

The USDA’s fraud prevention efforts include sophisticated investigative techniques and coordinated sting operations to stop fraudsters.

Never take a sketchy deal, no matter how good it sounds. It could be a setup.

Your Rights Against Self-Incrimination

If accused of SNAP trafficking, you have legal rights:

• Right to remain silent – don’t have to answer investigator questions
• Evidence can’t be used if obtained illegally
• Right to an attorney – ask for one immediately
• Innocent until proven guilty – burden of proof is on the state

Know your rights. Don’t say anything to investigators without your lawyer.

Don’t Fall for These Trafficking Scams

Watch out for these common trafficking scams:

• “Buy” expensive items you immediately “return” for cash
• Give your EBT card and PIN to staff who handle illegal transactions
• Return empty containers but store gives cash instead of refund
• Pay inflated prices for basic food to exchange benefits for cash

Any deal exchanging SNAP for cash is illegal. Just say no.

The Penalties for Selling SNAP Benefits for Monetary Gain