Falsely Reporting Income to Obtain Welfare Benefits: Fraud Charges

Welfare Fraud: The Consequences of Lying About Your Income

Committing welfare fraud can lead to serious criminal charges. Let’s break down what welfare fraud is, what the penalties are, and what defenses you may have if accused.

What is Welfare Fraud?

Welfare fraud refers to intentionally providing false or misleading information to obtain government benefits you aren’t entitled to. This includes programs like:

• Supplemental Nutrition Assistance Program (SNAP)
• Temporary Assistance for Needy Families (TANF)
• Medicaid
• Public housing assistance
• Unemployment benefits

Lying about your income, assets, household size, or other details to qualify for benefits is illegal.

For instance, if you fail to report income from a side job or inheritance, you could be charged with welfare fraud. Not reporting that your spouse moved back in, or claiming children who don’t live with you full-time, would also be considered fraud.

Penalties for Welfare Fraud

The consequences for welfare fraud depend on the amount of benefits wrongly obtained and specific state laws. Generally, it’s prosecuted as a felony or misdemeanor theft charge.

Penalties may include:

• Jail time – Felony fraud can result in years in prison. Misdemeanors may lead to less than 1 year.
• Fines – From hundreds to tens of thousands of dollars.
• Restitution – Having to repay all improperly received benefits.
• Benefits disqualification – Being banned from receiving benefits for a period of time or life.
• Federal charges – Lying on federal forms like SNAP and Medicaid applications can also lead to federal fraud charges.

The more money involved, the more serious the charges. For instance, fraudulently obtaining over $500 in SNAP benefits in Texas is a felony with up to 2 years imprisonment. Amounts over $1,500 are punishable by up to 10 years.

Defenses Against Welfare Fraud Charges

If you’re accused of welfare fraud, don’t panic. There may be defenses an experienced criminal defense lawyer can raise on your behalf, such as:

• Lack of intent – The prosecution must prove you knowingly lied on your application. If it was an honest mistake or you didn’t understand the reporting requirements, you may not have criminal intent.
• Disability – If you have a mental illness or disability that prevented you from filling out your paperwork properly, it could be a defense.
• Duress – Feeling threatened or coerced by an abusive partner or family member into committing fraud may provide a defense.
• No knowledge – If someone else completed your application without your knowledge or consent, you may avoid charges.
• Statute of limitations – There is a limit on how long after alleged fraud the state can charge you. This ranges from 3-6 years depending on the location.

In many cases, working with the agency to repay benefits and get back in compliance is better than facing criminal prosecution. Consulting an attorney to understand your rights is critical.

The Takeaway

Committing welfare fraud has serious legal and financial consequences. However, mistakes happen and the law allows for defenses in certain situations.

If you’re being investigated or charged, don’t go it alone. Hire an experienced criminal defense attorney to protect your rights. They can evaluate any possible defenses and negotiate with prosecutors for reduced penalties or dismissal when appropriate.

With the right legal help, many accused of welfare fraud avoid jail time and felony convictions. Don’t jeopardize your future over benefits you weren’t entitled to in the first place. Get advice from a lawyer right away so you can put this behind you.