What Are the Criminal Penalties for SNAP Fraud?

What Are the Criminal Penalties for SNAP Fraud?

The Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, provides crucial assistance to millions of low-income individuals and families struggling with food insecurity. However, like any government welfare program, SNAP is vulnerable to abuse and fraud. While errors can happen unintentionally, intentionally providing false information or misusing benefits is a crime that diverts taxpayer dollars and violates program rules meant to ensure aid reaches those truly in need.

SNAP fraud is prosecuted at both the state and federal level, with penalties ranging from administrative disqualifications to felony convictions carrying steep fines and years in prison. This article will break down the various laws and penalties surrounding SNAP fraud to provide a comprehensive overview of this complex issue. We’ll also look at real-world examples, defenses, and how to report suspected violations.

Types of SNAP Fraud

There are two main categories of SNAP fraud defined in federal law:

• Unlawful acquisition: Intentionally providing false information on an application to receive more benefits than entitled, using someone else’s EBT card without permission, or purchasing benefits from a recipient.
• Unlawful use: Using SNAP benefits to purchase ineligible items, trading benefits for cash or non-food goods (trafficking), or using benefits acquired illegally.

Specific examples include:

• Lying about household income or size on an application.
• Using multiple EBT cards that belong to other people.
• Buying restricted items like alcohol, tobacco, or lottery tickets with EBT cards.
• Exchanging SNAP benefits for cash at lower value (trafficking).
• Retailers allowing purchases of ineligible items or giving cash for EBT balances.

The key is that the recipient or retailer must knowingly violate SNAP rules and regulations. Simple errors or misunderstandings generally don’t rise to the level of intentional fraud.

Federal SNAP Fraud Laws and Penalties

The main federal law criminalizing SNAP fraud is 7 USC §2024 under the Food and Nutrition Act. This law categorizes offenses into felony or misdemeanor based on the dollar value involved:

• Over $100 but under $5,000 – Misdemeanor punishable by up to 1 year in prison and $100,000 fine.
• Over $5,000 – Felony punishable by up to 20 years in prison and $250,000 fine.

Other penalties include:

• Disqualification from SNAP for 1 year to permanent.
• Repayment of fraudulent amounts received.
• Forfeiture of property involved in trafficking offenses.
• Additional fines and prison time for subsequent convictions.

Related statutes like 18 USC §641 (theft of government funds) and 18 USC §1001 (false statements) may be used to prosecute SNAP fraud when appropriate.

Immigrants convicted of SNAP fraud over $10,000 may face deportation under the 1996 Immigration Act.

State Laws and Penalties

States have significant leeway in implementing SNAP and may enact their own laws and penalties surrounding fraud. These often mirror or expand upon federal statutes.

For example, in Texas SNAP fraud over $1500 is a felony under Texas Penal Code §32.46 and §31.03, punishable by 6 months to 10 years in prison. Many states also pursue criminal charges for smaller dollar amounts like $500.

Common additional state penalties include:

• Mandatory minimum sentences.
• Longer terms of imprisonment than federal law.
• Permanent disqualification from SNAP after 3 offenses.
• Charges for using falsified documents.
• Restitution for total amount defrauded, not just illegal transactions.

Real World Examples of SNAP Fraud

To understand how these laws apply in practice, here are some real-world examples of SNAP fraud and the penalties that were handed down:

• A New Jersey man pleaded guilty to possessing over 35 EBT cards and trafficking $100,000 in SNAP benefits for cash. He received 3 years probation and was ordered to repay the $100,000.
• A Houston retailer trafficked $1.4 million in SNAP benefits and was sentenced to 46 months in federal prison and $1.2 million restitution.
• A Florida woman lied about her income and received $16,000 in excessive benefits. She got 18 months in prison and $16,000 restitution.
• A Minnesota man acquired EBT cards from recipients and traded them for cash and drugs. He received 33 months in prison.

As shown, penalties correlate to the scope of the fraud, with lengthier prison sentences for larger dollar amounts illegally obtained.

Defenses Against SNAP Fraud Charges

Those accused of SNAP fraud have several legal defenses that may apply in fighting the charges:

• Lack of intent – Argue that false statements were accidental errors, not intentional deception.
• Entrapment – Claim law enforcement induced you to commit fraud you wouldn’t otherwise.
• Duress – You were forced or coerced into the crime against your will.
• Mistake of law – You sincerely misunderstood complex program rules.
• Mental incapacity – You lacked ability to form criminal intent due to disability.

An experienced criminal defense lawyer can assess if any of these defenses fit your particular situation. Challenging the prosecution’s evidence and proving reasonable doubt of intent is key.

How to Report Suspected SNAP Fraud

If you suspect someone is committing SNAP fraud, you can report it to the USDA Office of Inspector General by:

• Calling the OIG hotline at 800-424-9121.
• Submitting an online complaint form here.
• Emailing details to: usda_hotline@oig.usda.gov.

You can report anonymously but providing contact information allows investigators to clarify details. Most states also have hotlines to call if you suspect recipient, retailer, or employee fraud within the state. SNAP fraud robs taxpayers and denies benefits to those in true need. Reporting violations helps ensure the program’s integrity.

The Bottom Line

SNAP fraud is a serious crime that carries stiff penalties, including hefty fines, years behind bars, and permanent disqualification. Federal and state laws target both recipients who lie to obtain excessive benefits as well as retailers who traffic benefits illegally. Penalties are harsher for larger dollar amounts defrauded.

While fraud does occur, it represents a very small percentage of SNAP cases overall. If you find yourself charged with SNAP fraud after a misunderstanding or error, be sure to consult with an experienced criminal defense attorney right away to protect your rights. They can help argue against allegations and potentially have charges reduced or dismissed.