The federal Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, was established with a noble purpose: to provide crucial assistance to impoverished individuals and families, enabling them to access subsidies for purchasing essential food. This program, with its noble purpose, plays a vital role in supporting those in need.

Federal law makes it a crime to knowingly use, transfer, acquire, alter, or possess unauthorized SNAP benefits.

Any attempt to exploit the SNAP program for personal gain, commonly referred to as 'food stamp fraud,' not only misappropriates taxpayer money but also directly impacts those in need, the very people the program was designed to help. 

This exploitation not only affects the program's integrity but also the lives of the vulnerable individuals and families it was intended to support. This exploitation can lead to a reduction in benefits for those who truly need them, underscoring the importance of maintaining the program's integrity. 

Simply put, federal law targets SNAP (food stamp) fraud, which includes intentionally violating program rules to benefit personally, such as selling benefits or providing false information on an application. This can result in penalties, including fines, imprisonment, and permanent disqualification from the program.

Food stamp fraud is a federal crime that can result in severe penalties, including substantial fines, lengthy prison sentences, restitution, and forfeiture of property to reimburse the government.

What Does Federal Law Say?

These enforcement measures are outlined in Title 7 U.S. Code 2024, serving as a reminder of the consequences of SNAP fraud.

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…."

Anyone 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.

This means that even after serving any prison time or paying fines, the individual may still be prohibited from receiving SNAP benefits for an extended period, further impacting their ability to access essential food.

Snap Program 

While Title 7 U.S.C. 2024 addresses multiple facets related to the SNAP program, such as authorizing the Secretary of Agriculture to enforce benefits, the law effectively criminalizes two types of food stamp fraud:

• Unlawful Acquisition. This section makes it a crime when an individual knowingly "uses, transfers, acquires, alters, or possesses" SNAP benefits in a manner that is not authorized. This could include actions such as selling SNAP benefits for cash, using someone else's SNAP benefits without their permission, and providing false information on a SNAP application, such as underreporting income or assets, to receive more benefits than one is entitled to.
• Unlawful Redemption. This section makes it a federal crime to present SNAP benefits for redemption while knowing they were obtained unlawfully. If someone unlawfully sells your SNAP benefits and you attempt to redeem them knowing they were obtained fraudulently, you are committing a federal crime.

In context, the term 'knowingly' means that the individual was aware that their actions were contrary to the regulations of the SNAP program. Unintentional errors or mistakes, such as misreporting income due to a misunderstanding of the rules or forgetting to report a change in circumstances, are not considered fraud under this law.

Therefore, proving intent and prior knowledge are vital elements that prosecutors must demonstrate to secure a conviction. This understanding of 'knowingly' can help you navigate the legal system more effectively.

Related Federal Laws

7 U.S. Code Chapter 51 - Supplemental Nutrition Assistance Program has several federal statutes that are related to 7 U.S.C. 2024 food stamp fraud, including the following:

• 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

Food Stamp Fraud Penalties

Title 7 U.S.C. 2024 imposes a wide range of penalties for perpetrators of food stamp fraud. The actual penalties will depend on the type of offense and the total dollar value of the alleged fraud. A conviction carries the following penalties: 

Unlawful acquisition, transfer, use, etc. of SNAP benefits:

• If the total value is under $100, up to $1000 in fines, and up to one year in prison.
• If the total value is between $100 and $5000, up to $10,000 in fines and up to five years in prison.
• If the total value is greater than $5000, up to $250,000 in fines and up to 20 years in prison.

Unlawful redemption:

• If the total value is under $100, up to $1000 in fines and up to one year in prison;
• If the total value exceeds $1000, up to $20,000 in fines and up to five years in prison.
• Yu may also be subject to the forfeiture of any non-monetary property involved in the fraud, such as items traded in exchange for fraudulent benefits.

Notably, as an alternative to fines and imprisonment, the judge may permit someone convicted of food stamp fraud to work off their obligation by performing court-approved work until the equivalent restitution is paid. With such agreements, the court will suspend their sentence.

What Are the Defenses? 

Since SNAP benefits are managed through a federal government agency, it's a federal crime. To be convicted of food stamp fraud, the prosecutor has to prove you had fraudulent intent, meaning you knew you were committing fraud and intended to do so.

Perhaps we can argue that there were accidental omissions or misinformation. In that case, it can't be considered fraudulent intent. Often, it isn't easy to prove you knew and understood all the statutes associated with assistance.

Perhaps our federal criminal defense lawyers can argue for your case to be diverted from the court system and into a program focusing on restitution. Still, you will be required to repay your benefits and be disqualified for a period, but this could help avoid criminal charges and jail time. For more information, contact our criminal defense law firm, Eisner Gorin LLP, located in Los Angeles, CA. 

Related Content:

• Credit Card Fraud Law
• Title 7 U.S. Code 2024