Full question:
My husband and I own a small grocery store/meat market/deli in MS. Thirteen years ago, one of our cashiers was approached by a gentleman trying to buy items with food stamps that were not permissable. The cashier told him he could not purchase certain items under the food stamp program that we had in place. He then told our cashier that he needed cash and he would give her his 22.00 of food stamps for cash. She DID NOT take any money out of our register, she took the only money she had in her wallet (13.00) and gave it to him. He was an undercover agent for food stamp fraud. We service many poor people, and we need to have the program reinstated. Our application has been denied and we feel this is totally unfair. We were NOT in the store when this happened, and the cashier took the money out of her own wallet. Is there any hope of having the food stamp program again for our store.
- Category: Misc
- Date:
- State: Mississippi
Answer:
Food stamp fraud is a serious crime under both federal and state law. The government actively prosecutes offenders. If the evidence is insufficient for criminal prosecution, administrative hearings may occur. If a recipient commits an intentional program violation (IPV), they may be disqualified from receiving food stamps for one to two years, or for life in severe cases.
The Food Stamp Act imposes strict penalties on stores that accept food stamps for non-eligible items. For fraudulent transactions exceeding $5,000, penalties can reach up to $250,000 in fines and twenty years in prison. Even lesser offenses are felonies with fines up to $10,000 and five-year prison terms. Stores that violate food stamp laws may be disqualified from accepting food stamps in the future.
If your store is disqualified, the disqualification period can last for a reasonable time, not exceeding three years (7 C.F.R. § 272.6(a)). You can appeal the disqualification. The Food and Nutrition Service, the review body for such cases, can assess evidence regarding the severity of the penalty and the violation itself. If you received a notice of administrative action, review it carefully and consider filing an appeal to present your case.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.