Food Stamp Fraud Under Federal Law
The federal Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, was established with a noble purpose: to provide crucial support to impoverished individuals and families by subsidizing their essential food purchases.
Any attempt to exploit the SNAP program for personal gain, commonly known as 'food stamp fraud,' not only misuses taxpayer funds but also directly harms those who are in genuine need of assistance.
Food stamp fraud is a federal offense punishable by fines, imprisonment, restitution, and property forfeiture to repay the government. These enforcement actions are detailed in Title 7 U.S. Code 2024.
If you are accused of violating this federal law, it's crucial to seek legal counsel immediately.
A qualified attorney can help you understand your rights, navigate the legal process, and build a strong defense. Let's examine this statute in more detail below.
What Does Section 2024 Say?
7 U.S.C. 2024(b)(1) says, "Whoever knowingly uses, transfers, acquires, alters, or possesses benefits in any manner contrary to this chapter or the regulations, shall, if benefits are of a value of $5,000 or more, be guilty of a felony…. if such benefits are of a value of $100 or more, but less than $5,000, or if the item used, transferred, acquired, altered, or possessed is a benefit that has a value of $100 or more, be guilty of a felony… if such benefits are of a value of less than $100, shall be guilty of a misdemeanor….
In addition, any person convicted of a felony or misdemeanor violation may be suspended by the court from participation in the supplemental nutrition assistance program for an additional period of up to eighteen months consecutive to that period of suspension mandated by section 2015(b)(1) of this title."
What Are the Provisions of the Federal Law?
While Title 7 U.S.C. 2024 covers various aspects of the SNAP program, including granting the Secretary of Agriculture the authority to enforce benefits, the law also essentially criminalizes two forms of food stamp fraud.
The unlawful acquisition section makes it a crime for an individual to knowingly "use, transfer, acquire, alter, or possess" SNAP benefits in unauthorized ways. This could include actions such as:
- Selling SNAP benefits for cash, a practice referred to as trafficking.
- Using another person's SNAP benefits without their consent.
- Providing false information on a SNAP application, such as underreporting income or assets, to receive more benefits than one is entitled to.
The illegal redemption section of the law states that it is a federal crime to redeem SNAP benefits if you know they were obtained unlawfully.
For example, if someone unlawfully sells your SNAP benefits and you try to redeem them knowing they were obtained through fraud, you commit a crime under Title 7 U.S.C. 2024.
Regarding either of these offenses, 'knowingly' means the person was aware that their actions violated SNAP regulations.
Unintentional errors, such as a mistake on a form, are not classified as fraud under this law.
Therefore, establishing intent and prior knowledge are essential, and prosecutors must demonstrate these to secure a conviction.
What Are the Federal Laws That Are Related?
7 U.S. Code Chapter 51 - Supplemental Nutrition Assistance Program includes several federal statutes related to 7 U.S.C. 2024, which addresses food stamp fraud, such as:
- 7 U.S.C. 2011 - Congressional declaration of policy;
- 7 U.S.C. 2012 - Definitions;
- 7 U.S.C. 2012a - Publicly operated community health centers;
- 7 U.S.C. 2013 - Establishment of supplemental nutrition assistance;
- 7 U.S.C. 2014 - Eligible households;
- 7 U.S.C. 2014a - Notice of change in state of residence of household;
- 7 U.S.C. 2015 - Eligibility disqualifications;
- 7 U.S.C. 2016 - Issuance and use of program benefits;
- 7 U.S.C. 2016a - EBT benefits fraud prevention;
- 7 U.S.C. 2017 - Value of allotment;
- 7 U.S.C. 2018 - Approval of retail food stores and wholesale food;
- 7 U.S.C. 2019 - Redemption of program benefits;
- 7 U.S.C. 2020 - Administration;
- 7 U.S.C. 2021 - Civil penalties and disqualification of retail food stores;
- 7 U.S.C. 2022 - Disposition of claims;
- 7 U.S.C. 2023 - Administrative and judicial review; restore rights;
- 7 U.S.C. 2024 - Violations and enforcement;
- 7 U.S.C. 2025 - Administrative cost-sharing and quality control;
- 7 U.S.C. 2026 - Research, demonstration, and evaluations;
- 7 U.S.C. 2026a - Healthy fluid milk incentives projects;
- 7 U.S.C. 2027 - Appropriations and allotments;
- 7 U.S.C. 2028 - Block grants for Puerto Rico and American Samoa;
- 7 U.S.C. 2029 - Workfare;
- 7 U.S.C. 2031 - Minnesota Family Investment Project;
- 7 U.S.C. 2032 - Automated data processing and retrieval systems;
- 7 U.S.C. 2034 - Assistance for community food projects;
- 7 U.S.C. 2035 - Simplified supplemental nutrition assistance program;
- 7 U.S.C. 2036 - Commodities for emergency food assistance program;
- 7 U.S.C. 2036a - Nutrition education and obesity prevention program;
- 7 U.S.C. 2036b - Retail food store and recipient trafficking;
- 7 U.S.C. 2036c - Annual State report on verification of SNAP participation
- 7 U.S.C. 2036d - Pilot projects to encourage the use of public-private partnerships committed to addressing food insecurity
What Penalties are Specified?
Title 7 U.S.C. 2024 outlines a range of penalties for food stamp fraud, some of which are quite severe. The specific penalties vary based on the nature of the offense and the total amount of alleged fraud.
If found guilty under this law, you could face one of several penalties, each more serious than the last. For violations involving the unlawful acquisition, transfer, use, or related actions concerning SNAP benefits:
- If the total value is less than $100, the penalty can be up to $1000 in fines and a maximum of one year in prison. (A misdemeanor offense)
- If the total amount is between $100 and $5000, fines can reach up to $10,000, and imprisonment can last up to five years.
- If the total value exceeds $5000, the penalties include fines of up to $250,000 and imprisonment for up to 20 years.
For crimes related to unlawful redemption:
- If the total value is under $100, fines can be up to $1,000, and imprisonment can last up to one year.
- If the total value exceeds $1000, fines can go up to $20,000, and imprisonment can last up to five years.
For any conviction under Title 7 U.S.C. 2024, you may also face forfeiture of any non-monetary property involved in the fraud, such as items exchanged for fraudulent benefits.
Instead of fines or jail time, courts may allow someone convicted of food stamp fraud to 'work off' their obligation through court-approved work until the restitution is fulfilled.
In such cases, the court will suspend their sentence, and the individual will be required to perform community service or other approved work until the value of the fraud is repaid.
What Are the Possible Defenses?
Most penalties for food stamp fraud typically include administrative fines, though criminal charges can also be applied. Because a federal agency oversees SNAP benefits, such violations constitute a federal crime.
To be convicted of the white collar crime of food stamp fraud, the prosecutor must demonstrate that you had fraudulent intent, which means you were aware of committing fraud and intended to do so.
If we claim there were accidental omissions or misinformation, it cannot be regarded as fraudulent intent. Typically, demonstrating that you were aware of and understood all relevant statutes related to assistance is challenging.
Our federal criminal defense lawyers may be able to argue successfully for your case to be diverted from the court system into a restitution-focused program. While you will need to repay your benefits and face a period of disqualification, this approach could help you avoid criminal charges and jail time.
Contact us for a case review by phone or via the contact form. Cron, Israels & Stark has offices in Los Angeles, CA.