Wednesday, June 27, 2012

The Food-Stamp Crime Wave

Millionaires are now legally entitled to collect food stamps as long as they have little or no monthly income. Thirty-five states have abolished asset tests for most food-stamp recipients. These and similar "paperwork reduction" reforms advocated by the United States Department of Agriculture (USDA) are turning the food-stamp program into a magnet for abuses and absurdities.
The Obama administration is far more enthusiastic about boosting food-stamp enrollment than about preventing fraud. Thanks in part to vigorous federally funded campaigns by nonprofit groups, the government's AmericaCorps service program, and other organizations urging people to accept government handouts, the number of food-stamp recipients has soared to 44 million from 26 million in 2007, and costs have more than doubled to $77 billion from $33 billion.
The USDA's Food and Nutrition Service now has only 40 inspectors to oversee almost 200,000 merchants that accept food stamps nationwide. The Government Accountability Office reported last summer that retailers who traffic illegally in food stamps by redeeming stamps for cash or alcohol or other prohibited items "are less likely to face criminal penalties or prosecution" than in earlier years.
Lax attitudes toward fraud are spurring swindles across the nation:
• Earlier this month, the Milwaukee Journal Sentinel revealed that Wisconsin food-stamp recipients routinely sell their benefit cards on Facebook. The investigation also found that "nearly 2,000 recipients claimed they lost their card six or more times in 2010 and requested replacements." USDA rules require that lost cards be speedily replaced. The Wisconsin Policy Research Institute concluded: "Prosecutors have simply stopped prosecuting the vast majority of [food-stamp] fraud cases in virtually all counties, including the one with the most recipients, Milwaukee."

Read more: http://online.wsj.com/article/SB10001424052702304657804576401412033504294.html

SNAP Fraud and Abuse

It is illegal to knowingly use, transfer, acquire, change or possess SNAP benefits or South Dakota EBT cards in any way not authorized by the Supplemental Nutrition Assistance Program. If the value is $100 or more, you could be charged with a felony. If found guilty, you could be fined up to $250,000, be sentenced to 20 years in jail, or both.
Persons found guilty of intentional program violations may be disqualified from the Supplemental Nutrition Assistance Program 12 months for the first offense, 24 months for the second and permanently for the third offense. In addition, the court will require repayment of any unauthorized SNAP benefits issued.
Households CANNOT use SNAP benefits to buy:
  • Beer, wine, liquor, cigarettes or tobacco;
  • Any nonfood items such as pet foods, soaps, paper products and household supplies
  • Vitamins and medicines.
  • Food that will be eaten in the store.
  • Hot foods
In some areas, restaurants can be authorized to accept SNAP benefits from qualified homeless, elderly, or disabled people in exchange for low-cost meals. SNAP benefits cannot be exchanged for cash.

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