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Understanding Welfare Fraud in America

National Welfare Fraud Statistics and Trends

Welfare fraud is one of the most committed crimes in America, yet many get by month after month without being caught. However, law enforcement has made welfare fraud a top priority in the past decade.

According to U.S. Sentencing Commission data, government benefits fraud has increased 92.2% since FY 2019, with 4,855 cases reported in fiscal year 2023. The federal government estimates that about 1-2% of total welfare spending is fraudulent, while welfare fraud detection agencies identify over 30,000 cases annually in the United States.

Who Commits Welfare Fraud?

Typically, these types of white-collar crimes are often committed by recipients of the welfare system or by an employee that has access to the computers at a local government operation. Some cases involve the use of identity theft to receive benefits. People can steal the identity of someone who qualifies and use their data to collect benefits or cash.

Federal data shows that in 2020, the Office of Investigations for the Social Security Administration received 489,636 allegations. Most of the fraud was committed not by the recipients but by other persons who stole or collected the benefit after the recipients’ death.

The Process of Investigating Welfare Fraud

How Law Enforcement Builds Welfare Fraud Cases

When a person is suspected of welfare fraud, law enforcement will work the case gathering evidence. They use search warrants along with documents they have seized to file official charges.

The welfare fraud investigation process involves:

• Manual or automated checks of welfare applications
• Investigators looking for suspicious anomalies, false information, or duplicated claims
• Unannounced house visits to verify eligibility
• Data matching against bank records and employment databases

Consequences of Welfare Fraud Convictions

Those convicted of welfare fraud can face significant prison time, and there will be hefty fines that come along with the criminal record. If you live in the Queens area and you have been charged with a welfare crime, then you need to contact a lawyer immediately.

According to Pennsylvania’s Office of State Inspector General, welfare fraud occurs when an individual uses fraudulent means to receive public assistance benefits to which they were not entitled.

You want an attorney that has handled these types of cases before and knows how to present the proper defense. It can mean the difference in going to jail or doing community service.

Common Misunderstandings about Welfare Fraud

Unintentional Welfare Fraud Violations

How does this type of fraud occur? Well, some people commit a crime without even realizing it, and this is the case for welfare fraud. If you don’t declare all household income, or you have assets that you don’t report, then you can be convicted. You may not be purposely trying to defraud the government, but you just had a lapse in judgment or forgot.

To receive benefits, you must declare all assets and income, and all recipients must sign a perjury statement. Since things change frequently, you may have additional income that you didn’t report.

Reporting Requirements and Deadlines

Technically, if you get a new vehicle, sell a property or an automobile, you must notify the agency about these changes within 30 days. Any change not reported within an appropriate amount of time is fraudulent in the eyes of the law, and it can lead to charges of welfare fraud.

Federal law requires recipients to notify the government program of any material changes in their financial or household circumstances that might impact eligibility. Examples include:

• Changes in earned income
• Changes in household size
• Receipt of other benefits
• Employment status changes

Consequences of Being Convicted

The Complex Process of Welfare Fraud Prosecution

Convicting a person of welfare fraud is a complicated process. Many cases we handle in Queens is due to a child that has moved from the home, and the agency wasn’t notified. The parents continue to collect benefits even though they no longer live with them. Also, we see a lot of people that have job changes that affect their income and they fail to report those additional monies.

Other things that must be reported include alimony, child support, adoption subsidies, and any changes in the number of people in the household.

Criminal and Civil Penalties

The state of New York may file welfare charges, but they can also file perjury charges for lying also. Receiving benefits that a person is not entitled to is a serious crime.

When it comes to fraud committed by welfare employees in the Queens area, they are always prosecuted to the fullest extent of the law. The District Attorney’s office usually handles these cases. The prosecutor will file at least one perjury count as well as seeking:

• Jail or prison time
• Putting you on probation
• Assigning community service
• Placing a permanent ban on ever receiving welfare benefits

New York Welfare Fraud Offenses

Different Degrees of Welfare Fraud in New York

According to New York law, a person commits welfare fraud when they intentionally engage in any of the following activities:

• Offering, presenting or submitting an oral or written application for public assistance benefits while knowing that the application contains false statements or information.
• Using a false identity, whether real or fictitious, with the intent of obtaining public assistance benefits.
• Giving false information or statements in order to establish or maintain eligibility for public assistance benefits.

The state of New York recognizes five degrees of welfare fraud crimes. Each degree is distinguished by the monetary value of public assistance benefits that were wrongfully used. Here is a closer look at each degree of welfare fraud:

Fifth Degree Welfare Fraud

New York Penal Law § 158.05 – Class A Misdemeanor

• Any amount of fraudulent benefits
• Up to 1 year in jail

Fourth Degree Welfare Fraud

New York Penal Law § 158.10 – Class E Felony

• Benefits exceeding $1,000
• Up to 4 years in prison

Third Degree Welfare Fraud

New York Penal Law § 158.15 – Class D Felony

• Benefits exceeding $3,000
• Up to 7 years in prison

Second Degree Welfare Fraud

New York Penal Law § 158.20 – Class C Felony

• Benefits exceeding $50,000
• Up to 15 years in prison

First Degree Welfare Fraud

New York Penal Law § 158.25 – Class B Felony

• Benefits exceeding $1,000,000
• Up to 25 years in prison

Potential Penalties for Committing Welfare Fraud

If convicted of welfare fraud in the state of New York, you may be required pay restitution equal to the monetary value of benefits that were illegally obtained. In addition to this sum, you may be permanently barred from receiving welfare benefits in the future. Other punishments include jail or prison time, community service and a long list of other punishments.

According to federal sentencing statistics, nearly 68 percent of fraud offenders had little or no prior criminal history, yet still faced significant penalties.

Importance of Legal Assistance in Welfare Fraud Cases

Time-Sensitive Nature of Welfare Fraud Defense

If you are under investigation or have been charged with welfare fraud, time is of the essence. You need an experienced attorney that knows how to defend you.

The New York Office of the Welfare Inspector General conducts investigations of fraud, abuse or illegal acts perpetrated within local social services districts and by beneficiaries of public assistance services.

How Defense Attorneys Can Help

Many times, these cases can be resolved without you spending any time in jail. With extensive knowledge of the legal system, our team has relationships with people in law enforcement and the court circuit.

We can make deals and try to negotiate the charges. While there are no guarantees until we examine your case, we have helped many clear up misunderstandings and walk away unscathed. The important thing is having a lawyer working hard for you.

Don’t deal with Queens Welfare Fraud Lawyers alone. Speak to the Spodek Law Group today.

FAQs about Welfare Fraud

What is welfare fraud?

The term welfare fraud is used to describe the act of intentionally defrauding the government in order to receive, maintain or increase welfare payments or services.

Federal welfare fraud statistics from the GAO show that in FY 2021, confirmed fraud totaled $4.5 billion, though this may not include all cases.

Who should you contact if accused of welfare fraud in Queens?

If you or someone you know is being accused of welfare fraud, you need a Queens welfare fraud lawyer to help you protect your wallet and your reputation.

Welfare fraud accusations of any kind should always be taken seriously. If you or a loved one has been accused of welfare fraud, our Queens welfare fraud lawyers may be able to help. Give us a call today to see what we can do for you.

Key New York Penal Law Provisions for Welfare Fraud

Under New York Penal Law Article 158, the state defines various welfare fraud offenses and their penalties. The law includes provisions for:

• Fraudulent welfare acts
• Criminal use of public benefit cards
• Criminal possession of public benefit cards

These laws are enforced by various agencies including local District Attorneys’ offices and the NYC Human Resources Administration’s Bureau of Fraud Investigation, which pioneered the use of data analytics to support investigative fieldwork.