What to Do if You’re Investigated for Welfare Fraud

Both the state and federal governments need to protect the integrity of the welfare system. For this reason, prosecutors may hold claimants accountable for even minor fraud to the full extent of the law. Do not speak with law enforcement or public officials if you’re being investigated for welfare fraud in New Jersey. Immediately contact welfare fraud lawyer Peter Katz to discuss your defense.

Overview of Welfare Programs

Program or welfare fraud charges generally involve allegations that you submitted false information to a social assistance program to obtain benefits. This often involves claims that you lied about or omitted information about your income, assets, health, household size, or continued eligibility.

Welfare fraud is generally punishable under both state and federal law. State-based claims involve allegations that you defrauded a New Jersey assistance program, including:

• SNAP/EBT
• Unemployment
• NJ Family Care/Medicaid
• Home Energy Assistance Program
• WIC
• Housing Assistance
• Childcare credits

Because many of these programs, such as Medicaid, are partially funded by the federal government, you can also be charged with welfare fraud in federal court. This most commonly occurs when the fraud involves a business entity, such as a store, that unlawfully accepts SNAP for unauthorized products.

Steps to Take During Welfare Fraud Investigations

If you receive a letter from the State of New Jersey—generally through the Division of Family Development—regarding suspected fraud, immediately bring it to a local white-collar criminal defense lawyer. This normally means they already have evidence of the alleged fraud and may be fishing for additional information.

It can be overwhelming when you’re threatened with losing your benefits, and this may lead you to make false statements out of fear. You should not ignore any attempted contact, but you should immediately obtain legal representation. Once you retain a lawyer, all communications must proceed through the law office. This can protect you from making any additional false claims, resulting in dismissal and restoring any lost benefits.

Potential Consequences of Program Fraud Charges

The criminal and financial penalties associated with welfare fraud can range from the discontinuation of benefits to multi-million-dollar recovery lawsuits. This depends on the nature of the fraud and the unlawful amounts allegedly received. For example, a mother who lies about cash income to obtain Medicaid benefits may lose her healthcare and be required to pay for any unlawfully obtained healthcare services. An experienced healthcare fraud lawyer can likely help her avoid jail time through a plea negotiation.

However, running a fraudulent and unsafe childcare facility to take advantage of childcare credits may result in significant federal and state criminal charges and jail time.

Contact an Experienced Welfare Fraud Defense Attorney

Contacting dedicated federal and state white-collar criminal defense lawyer Peter Katz in New Jersey is the best thing you can do if you’re being investigated for program fraud. Do not respond to program information requests, even if it means the potential loss of benefits. Instead, immediately bring any paperwork to Peter Katz to discuss achieving the best possible outcome in your case. Call (609) 849-3179 or connect with his office online today.