Welfare fraud is the act of receiving public assistance benefits on the basis of some kind of fraudulent action. The fraud can include giving false statements on an application for benefits, neglecting to report the receipt of another type of benefit such as workers compensation, or neglecting to report income. Five welfare fraud offenses are covered in the New York criminal code. The particular charge you would face is based on the dollar amount of public assistance benefits you are accused of stealing from the government. You could be prosecuted under New York Penal Law section 158.15 for welfare fraud in the third degree if you:
- Knowingly committed a fraudulent welfare act, and
- The value of the benefit funds you received from your activity was greater than $3,000
A “fraudulent welfare act” entails engaging in any of the following activities:
- Filing an application for a public benefit card in full awareness that the application contains false information,
- Assuming the identity of another person in order to get public assistance benefits, or
- Putting forth a false statement in order to fraudulently establish or maintain eligibility for public assistance benefits; or to get an increase or to prevent the reduction of public assistance benefits.
For the purposes of the welfare fraud legislation, the term “public assistance benefits” refers to money, property or services furnished by the federal, state or local government and administered by the Department of Social Services or by social services districts.
A Case Law Example
Nicole Carter put in an application at the New York City Human Resources Administration for SNAP food benefits, temporary cash assistance, and public health insurance. On her application, Ms. Carter certified that she had no income or resources to report. In actuality, Ms. Carter was working for the United States Postal Service, as evidenced by pay stubs and time sheets, as well as by the testimony from a USPS investigator. Subsequently, Ms. Carter was convicted of welfare fraud in the third degree based on the amount of benefits she received fraudulently. This was the case of the People v. Carter, 948 N.Y.S.2d 608 (N.Y. App. Div., 2012)
Offenses that are Related
Welfare fraud in the fifth degree: New York Penal Law section 158.05
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(212) 300-5196Welfare fraud in the fourth degree: New York Penal Law section 158.10
Welfare fraud in the second degree: New York Penal Law section 158.20
Welfare fraud in the first degree: New York Penal Law section 158.25
Possible Defenses
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In order to get a convict against you on a charge of welfare fraud in the third degree, the prosecutor has to be able to demonstrate that your fraudulently received benefits funds exceeded $3,000. If the prosecutor is not able to prove that, even if the prosecutor was able to prove that you did indeed get the benefits fraudulently, then the court is probably going to dismiss the charge.
You applied for food stamps and Medicaid after losing your job, but you didn't report that you started earning cash income from freelance work a few months later. Now a caseworker has contacted you saying there's an investigation into your benefits, and you received a letter mentioning welfare fraud charges.
Could I really face criminal charges just for not reporting my freelance income while receiving public assistance?
Yes, failing to report income while receiving public assistance benefits can result in criminal charges under New York Penal Law § 158.15, Welfare Fraud in the Third Degree, which is a class D felony if the overpayment exceeds $3,000 but is less than $50,000. The prosecution must prove that you intentionally withheld information about your income to continue receiving benefits you were not entitled to. However, there may be defenses available, including whether you received proper notice of your reporting obligations or whether the unreported income actually affected your eligibility. An experienced attorney can negotiate with the district attorney's office to potentially reduce the charges or arrange a repayment agreement that avoids a felony conviction on your record.
This is general information only. Contact us for advice specific to your situation.
The Sentence
Since this is a class D felony offense, if you are convicted of welfare fraud in the fifth degree, your sentence might include a prison term of up to 7 years, a probation term of 5 years, and the payment of a fine. You would also be obligated to repay the funds that you received fraudulently.
