Welfare Fraud - How it Works
Welfare fraud in California involves persons receiving benefits for which they are not eligible by way of providing false qualifying information. In most cases, the accused person failed to disclose income, assets or circumstances; the reporting of which would have disqualified her from further benefits.
California and the counties set strict criteria for who can receive welfare. The family must be sufficiently poor. Recipients must sign documents under penalty of perjury declaring all assets, sources of income, persons residing in the home and their contributions to the home.
Suppose, for example, that Betty is a single mother with two kids and no assets or income. Based on her circumstances, she qualifies for welfare and starts receiving benefits. But wanting to supplement her welfare income, she takes a "cash job" under the table as a receptionist. She also receives a new car as a gift from her parents. Knowing that reporting these developments would make her ineligible for benefits, she conceals them from the welfare office.
If discovered, not only could Betty be charged with felony welfare fraud...she also would be liable to repay the government for any benefits she received for which she had become ineligible (plus penalties and interest).
Some counties, such as Los Angeles, have special units devoted to prosecuting welfare fraud specifically. While defendants could go to state prison, as a practical matter prosecutors are more interested in getting restitution for the county. Defendants who successfully repay the ill-gotten benefits can usually earn a pass from jail and a reduction in the charges.
