Food Stamp Program Waste, Fraud and Abuse

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Henry Clay
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Food Stamp Program Waste, Fraud and Abuse

October 2005

The Food Stamp Program
Waste, Fraud and Abuse

In September 2005, a store owner pled guilty in a federal court to committing over $1 million in food stamp fraud and money laundering. An investigation by the USDA Office of the Inspector General revealed that the individual illegally obtained over $1.2 million in food stamp benefits in just five months.
Source: USDA, OIG, Investigation Developments, September 2005
http://www.usda.gov/oig/webdocs/InvPosting050930.pdf

In October 2003, the owner of a Miami convenience store was convicted of illegally redeeming food stamp coupons worth approximately $3.3 million. The owner is serving time in jail.
Source: USDA, OIG, Investigation Developments, September 2005
http://www.usda.gov/oig/webdocs/InvPosting050908.pdf

In December 2003, a Chicago convenience grocery store owner was convicted of food stamp fraud. The owner paid more than $575,000 in restitution for his actions, which included food stamp trafficking and laundering, in which he was helping a disqualified food stamp participant receive profits from food stamp receipts.
Source: UDSA, OIG, February 2005, Report No. 52

In 2003, the food stamp program spent $1.1 billion in "overpayments" to program beneficiaries. This is money that is not refunded to the government and is counted as a program loss on the budget books.
Source: OMB, GAO-05-245, May 2005

In FY 2001, food stamp benefit overpayments and underpayments totaled $1.3 billion of the $15.5 billion in total benefits distributed to program beneficiaries. Additionally, according to the House Budget Committee, "three and a half cents of every food stamp benefit dollar is lost to trafficking."
Source: August 2003 House Budget Committee Press Release
http://www.house.gov/budget/rpwasteexample072403.htm

In 1999, $1 billion was spent paying for food stamp benefits to the wrong people, while certain eligible recipients were shortchanged a total of $450 million. These errors equaled nearly 10% of the total food stamp budget.
Source: GAO, GAO-01-272 January 2001

Staff Contact: Joelle Cannon, 202.226.9717
Joelle.cannon@mail.house.gov
[url]http://johnshadegg.house.gov/rsc/FoodStampWaste.doc[/url]

Taxpayer
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Joined: 09/08/2005 - 12:01am
Food Stamp Program Waste, Fraud and Abuse

Why do we reimburse grocery stores at FULL RETAIL PLUS handling fees for food stamp purchases? Seems with the bulk purchasing power of the program, if we are going to buy lazy, fat people twinkies, we should at least be getting a break on them.

pmrmsm
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Joined: 05/08/2006 - 10:52am
Feds target small stores in

Feds target small stores in inquiry into foodstamp fraud
Authorities say the stamps are then redeemed as usual by the unscrupulous merchants at face value, netting them huge profits and diverting as much as $330 million in taxpayer funds annually a year. The transactions are electronically recorded and federal investigators, wise to the practice, are closely monitoring thousands of convenience stories and mom-and-pop groceries, to halt the fraud.
Known as foodstamp trafficking, the illegal buying or selling of foodstamps is a federal offense…

PPH

Naran
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Joined: 10/06/2004 - 12:01am
Bill would require photo ID

Bill would require photo ID for Maine food stamp users
Staff | Sun Journal
By Eric Russell, BDN Staff
Posted Feb. 28, 2012, at 6:22 p.m.

AUGUSTA, Maine — Potential fraud could be reduced if food stamp recipients were required to produce photo identification .....

Rep. Lance Harvell, R-Farmington....sponsored LD 1812.... would... allow food retailers to ask EBT users to show identification.

Many ....said ...requirement would have unintended consequences...feared that it might further demonize those receiving public assistance.

[url=http://bangordailynews.com/2012/02/28/politics/bill-would-require-photo-...

***********

Golly. Does that mean requiring ID for cashing a check, buying a house, or opening a bank account is DEMONIZING the applicants?? Horrors.

Naran
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Last seen: 4 years 5 months ago
Joined: 10/06/2004 - 12:01am
Bump.

Bump.

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