California Department of Social Services presents……. 1REV 7/11/14

WHAT IS WELFARE FRAUD? Welfare fraud happens when someone who is applying for or receiving CalFresh or CalWORKs provides false information or knowingly fails to report any mandated changes in their current situation or sells or trades their CalFresh Benefits for anything other than food 2REV 7/11/14

THE MOST COMMON TYPES OF WELFARE FRAUD Knowingly failing to report mandatory additional income or other benefits.Claiming to be a single parent while the child’s other parent actually lives in the home.Submitting a claim for a child who does not live in the home or for fictitious children.Collecting benefits from another state along with collecting benefits from California. Trafficking EBT cards (Allowing use of or selling EBT cards to others).This includes selling or trading benefits online through social media such as Craigslist, Facebook and Twitter 3REV 7/11/14

Examples of EBT Trafficking Selling, trading or giving away EBT food benefits. Allowing a retailer to buy EBT food benefits in exchange for cash. Letting someone else use EBT food benefits intended for you. 4REV 7/11/14

Examples of Fraud in California In one county a husband and wife applied for cash-aid on their alleged low income. The couple failed to report that the wife owned a liquor store and recycling business. The wife also drove a $76,000 luxury car and had almost $150,000 hidden in her dresser drawer. In another county, a woman used a fake Social Security number to obtain almost $2,000 in cash aid and CalFresh. Retail stores exchanging cash for CalFresh EBT Cards. 5REV 7/11/14

REPORTING WELFARE FRAUD Why should we report Welfare Fraud activities? Reporting Welfare Fraud prevents, detects, and deters fraudulent activities. Reporting Welfare Fraud allows for the prosecution of those who unlawfully obtain public aid. Reporting Welfare Fraud protects the interests of those in genuine need and conserves taxpayer resources. 6REV 7/11/14

What information is needed to report fraud? Who? What? Where?When? Why/How? 7REV 7/11/14

WHAT INFORMATION WILL I BE ASKED WHEN I MAKE A REPORT? Information that will be helpful with the investigation includes: May you be contacted? If so, what is your name and phone number? (Your identity can be kept confidential). When was the fraud taking place and for how long? How are they committing welfare fraud? Examples: An unreported adult is living in their home. They have assets that have not been reported to the case worker. They have not provided the caseworker their current address. They are trying to sell or trade their EBT card. Where do they live? (address/county) Who is the person committing fraud? 8REV 7/11/14

Investigations are conducted by the county Welfare Fraud Hotline Counties are mandated to conduct investigations of alleged criminal conduct within the CalWORKs and CalFresh (Food Stamp) programs. To report welfare fraud contact the appropriate County Agency directly. County Agency Or If you need assistance in determining which county to call contact the Welfare Fraud Hotline at: or by at: Fraud 9REV 7/11/14

Additional Fraud Reporting Resources To report suspected Social Security abuse: Office of Inspector General Department of Health & Human Services ATTN: HOTLINE PO Box Washington, DC Phone HHS-TIPS ( ) Fax To report In-Home Supportive Services (IHSS) Fraud: DHCS IHSS Fraud Hotline: On-line at: To report Child Abuse: Child Protective Services: CPS Hot lines: Child Welfare Information Gateway: To report suspected Medi-Cal fraud or elder abuse: California Department of Justice Bureau of Medi-Cal Fraud Elder Abuse P.O. Box Sacramento, CA Phone Toll-free: (800) Attorney General's Bureau of Medi-Cal Fraud & Elder Abuse On-line at: To report EBT trafficking: USDA’s OIG hotlines: To report suspected WIC abuse: File a complaint by calling (800) , ask for the Program Integrity Unit. File a complaint by writing to: Program Integrity Unit WIC Supplemental Nutrition Branch 3901 Lennane Drive Sacramento, CA File a complaint by to: eFax: (916) REV 7/11/14

Welfare Fraud Investigations can result in a variety of outcomes A denial of benefits A reduction of benefits A discontinuance of benefits Restitution action In cases where there is clear criminal intent to commit fraud, and the amount of fraud is significant, a complete and detailed report is sent to the District Attorney’s Office with a request for criminal prosecution. Once a conviction is obtained, the offender could: Be ordered to pay restitution Receive a jail sentence in county jail Receive a state prison sentence State of California Fraud Hotline: TIPS (8477) 11REV 7/11/14