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The Penalties and Fines for SNAP Trafficking Convictions

Getting busted for trafficking SNAP benefits can lead to some super harsh punishments. Both retailers and recipients who commit SNAP fraud face fines, disqualification from the program, and even jail time in serious cases.

The penalties depend on how much trafficking happened and whether it was the first offense or repeat behavior. Let’s break down exactly what kind of fines and penalties happen when you get caught trafficking food stamps.

What is SNAP Trafficking?

First up, a quick refresher on what SNAP trafficking actually means. SNAP stands for the Supplemental Nutrition Assistance Program, which provides food stamp benefits to low-income families and individuals.

According to the USDA Food and Nutrition Service, trafficking is when someone exchanges SNAP benefits for cash instead of food.

For example:

• A retailer lets a customer pay $100 in SNAP benefits for $50 cash back.
• Someone uses their SNAP card to buy cases of soda, then resells the soda to get cash.

Both retailers and recipients can commit SNAP trafficking fraud. Either way, it’s illegal and can lead to penalties if caught!

Penalties for Retailers

Severe Consequences for Store Owners

If a retailer like a gas station or corner store gets caught trafficking SNAP benefits, they’ll likely face:

• Permanent disqualification – This means a store can NEVER again accept SNAP payments. For small stores, this effectively puts them out of business.
• Fines – Civil fines up to $100,000 based on the amount of trafficking.
• Criminal charges – Trafficking over $5,000 in benefits can trigger federal criminal charges and potential prison time.

It’s no slap on the wrist! Retailers face potentially business-ending penalties for SNAP fraud. The more trafficking, the harsher the punishment.

Permanent Disqualification

Let’s explore permanent disqualification first. This is the harshest penalty for retailers caught trafficking SNAP benefits.

According to 7 CFR § 278.6, it means a store can never again accept SNAP EBT payments for food purchases. Since many smaller stores rely heavily on SNAP revenue, losing this income stream puts them out of business.

Permanent disqualification happens if:

• It’s a retailer’s second trafficking offense – 1 strike and you’re out! Previous temporary disqualifications convert to permanent disqualification if caught again.
• A retailer is caught trafficking $5,000 or more in SNAP benefits.
• A court convicts the retailer of SNAP trafficking.

This lifetime SNAP ban is no joke. Many corner stores and bodegas never financially recover once permanently barred from the program.

Civil Fines

In addition to disqualification, SNAP retailers caught trafficking face stiff civil fines based on the dollar amount of fraud.

The USDA’s anti-fraud enforcement shows that fines up to $100,000 can be assessed for even one incident of trafficking. The more trafficking, the bigger the fine.

Some examples of potential civil fines:

• Trafficking $5,000 in benefits = $30,000 fine
• Trafficking $50,000 in benefits = $100,000 fine (the max)

These huge fines can devastate a small business. And if trafficking continues, multiple fines may be assessed! Just one more reason to avoid SNAP fraud.

Criminal Charges

SNAP trafficking over $5,000 is not just a program violation – it’s a federal crime. According to 7 U.S. Code § 2024, retailers who traffic large amounts of benefits may face criminal prosecution.

This can lead to potential outcomes like:

• Prison sentence up to 20 years
• Probation
• Community service
• Forced to repay the value of illegally trafficked benefits

Pleading guilty to SNAP fraud may reduce the sentence versus going to trial, but either way – ouch! Retailers should think twice before taking part in large scale SNAP trafficking schemes.

Penalties for Recipients

SNAP Recipient Disqualification and Criminal Penalties

Now let’s look at the penalties SNAP recipients face if caught trafficking their benefits.

According to New Hampshire’s SNAP regulations, recipients also face stiff consequences like:

• Disqualification from receiving SNAP from 1 year to permanent
• Fines up to $250,000
• Criminal charges for trafficking $5,000+ in benefits

Let’s break these down more.

Disqualification from SNAP

If caught trafficking SNAP benefits, recipients are disqualified from receiving benefits for a set time.

The Pennsylvania Office of State Inspector General notes that the length depends on whether it’s a first offense or repeat violation.

Disqualification periods include:

• 12 months for first offense
• 24 months for second offense
• Permanent disqualification for third offense

No SNAP for up to life? That’s a huge deal for low income families! This penalty alone is incredibly harsh.

Fines

Financial Penalties for SNAP Recipients

In addition to losing benefits, recipients trafficking SNAP also face fines up to $250,000 based on the dollar amount illegally exchanged.

Some potential fines include:

• $5,000 trafficking = $2,500 fine
• $20,000 trafficking = $100,000 fine
• $100,000 trafficking = $250,000 fine (max)

Fines of thousands of dollars can seem impossible to pay back for low income recipients caught trafficking benefits. The penalties are no joke!

Criminal Charges

Just like retailers, recipients who traffic $5,000 or more in SNAP benefits face federal criminal charges.

According to the Farmers Market Legal Toolkit, this can lead to outcomes like:

• Prison sentence up to 20 years
• Probation
• Community service
• Repaying the value of the trafficked benefits

Large scale SNAP fraud is not taken lightly. Recipients should think very carefully before engaging in benefit trafficking.

State Differences

Penalties for SNAP trafficking may vary slightly between states. For example, some states permanently disqualify recipients on just the second offense versus third.

The Center for Law and Social Policy notes that states have flexibility in setting fine amounts within the federal limits.

But in general, the penalties we’ve covered are consistent across the U.S. SNAP trafficking is high risk with potentially devastating consequences for retailers and recipients alike.