What is Welfare Fraud?
Welfare fraud describes
the intentional misuse of various state funded welfare programs. It may consist of withholding certain
information or providing inaccurate or false information to receive
benefits. The most common types of
welfare fraud include failing to report additional income, failure to disclose
information regarding household family members, or supplying false information
about an inability to work. There have
also been instances were people feigned illness or injury to manipulate the
welfare system.
The Cost of Welfare
Fraud
In general practice,
welfare fraud often consists of someone acquiring benefits that are undeserved
to them. An error may occur where a
recipient collects benefits in their name in a situation where they don't
qualify, or they may collect benefits on behalf of someone who will never
receive the funds.
Welfare fraud has proven
to be rather expensive, costing the system millions in misused benefits every
year. In each U.S. state, the penalty
for extensive fraud warrants a felony convention, one that could land a
perpetrator in prison for many years.
Due to the growing rate of this crime, several states now offer large
rewards for the reporting of welfare fraud that leads to a conviction.
Criticism
Welfare fraud has been
widely criticized by advocates of the system because this abuse makes funds
less available to those who actually need the benefits. It has also been criticized by opponents of
the system who believe the crime creates situations where hard working
taxpayers are supporting the middle class and a lavish lifestyle for criminals. These critics have coined the terms "welfare
Cadillac" or "welfare Queen" to instances or individuals associated with
welfare fraud.
Examples of Welfare
Fraud
1.) In 1977, the
executive director of the Illinois Legislative Advisory Committee for Public
Aid took action against Linda Taylor, a Chicago resident. It was claimed that Taylor used 14 alias
names to receive an estimated $150,000 in medical coverage, cash assistance and
food stamps. It was said that the woman
migrated from district to district using these aliases to fraudulently obtain
benefits.
2.) In 1981, Dorothy Woods was jailed on 12
counts of welfare fraud. She claimed 38
non-existent children and manipulated the system for more than $300,000. The most disturbing part about this story is
that Woods was rumored to be a wealthy woman before committing the crime.
3.) Arlens Otis of Cook County, Illinois was
indicted on 613 counts of fraudulently receiving $150,839 in welfare benefits
from July of 1972 to February of 1978.
4.) The biggest case of welfare fraud came when
Barbara Williams was found guilty of manipulating Los Angeles County for
$239,000 in benefits. The crime provoked
a conviction that sentenced her to eight years in prison.
Welfare fraud is a crime
that can be easily avoided. This can be
done by accurately reporting all of your information to an agency, including
job status and the number of family members residing in your home. Additionally, it is wise to refute the
efforts of anyone that attempts to involve you in this type of fraud.
You can report this crime
by contacting your local welfare office.
