Federal Food Stamp Fraud

7 U.S.C. § 2024 – SNAP Fraud Defense Lawyer

The federal Supplemental Nutrition Assistance Program (SNAP), commonly referred to as the Food Stamp Program, is designed to help low-income individuals and families purchase essential food.

Because SNAP benefits are federally funded, misuse of those benefits can result in prosecution under federal law.

Under 7 U.S.C. § 2024, knowingly misusing, transferring, trafficking, or unlawfully redeeming SNAP benefits can lead to serious criminal penalties, including substantial fines, imprisonment, restitution, forfeiture, and suspension from the SNAP program.

If you are under investigation or charged with food stamp fraud, early legal intervention by an experienced federal criminal defense attorney can significantly impact the outcome of your case.

Your best hope for a favorable outcome is with a defense attorney at Eisner Gorin LLP in Los Angeles. To schedule a consultation, call (818) 781-1570 or contact us here.

What Is Food Stamp Fraud Under 7 U.S.C. § 2024?

7 U.S.C. § 2024 criminalizes the knowing misuse of SNAP benefits. The statute covers both individuals and retailers who unlawfully acquire, transfer, use, redeem, or possess benefits in violation of federal regulations.

The key element in any prosecution is knowledge and intent. Honest mistakes or clerical errors do not automatically constitute fraud.

Two Primary Categories of SNAP Fraud

Unlawful Acquisition

This includes knowingly:

Selling SNAP benefits for cash (benefit trafficking)
Using another person's SNAP benefits without permission
Providing false information on a SNAP application
Underreporting income or assets to obtain more benefits

The government must prove that the conduct was intentional and contrary to SNAP rules.

Unlawful Redemption

This typically applies to retailers or third parties that knowingly redeem benefits obtained unlawfully.

Examples include:

Accepting SNAP benefits for non-food items
Purchasing benefits at a discounted rate from recipients
Redeeming benefits known to have been fraudulently acquired

What Does “Knowingly” Mean?

To convict under 7 U.S.C. § 2024, prosecutors must prove that:

You were aware your conduct violated SNAP rules;
You intentionally acted contrary to program regulations;
You did not act by mistake, misunderstanding, or accident.

Intent is the central issue in most food stamp fraud cases.

Common Examples of SNAP Fraud Allegations

Benefit Trafficking

Exchanging SNAP benefits for cash at less than face value.

False Statements on Applications

Misrepresenting income, household size, or employment status to increase benefit eligibility.

Retail Store Violations

Accepting SNAP benefits for:

Cigarettes
Alcohol
Non-food merchandise

Retailers may also face permanent disqualification from the SNAP program.

Related SNAP Statutes

7 U.S.C. § 2024 is part of Chapter 51 of Title 7, which governs SNAP. Related provisions include:

7 U.S.C. § 2015 – Eligibility disqualifications
7 U.S.C. § 2016 – Issuance and use of program benefits
7 U.S.C. § 2021 – Civil penalties and disqualification of retail stores
7 U.S.C. § 2022 – Disposition of claims
7 U.S.C. § 2023 – Administrative and judicial review

These statutes allow for both administrative penalties and criminal prosecution.

Penalties for Food Stamp Fraud

Penalties depend on the value of the alleged fraud.

For Unlawful Acquisition or Trafficking

Under $100:
- Up to $1,000 fine
- Up to 1 year in prison (misdemeanor)
Between $100 and $5,000:
- Up to $10,000 fine
- Up to 5 years in prison (felony)
Over $5,000:
- Up to $250,000 fine
- Up to 20 years in prison (felony)

For Unlawful Redemption

Under $100:
- Up to $1,000 fine
- Up to 1 year in prison
Over $1,000:
- Up to $20,000 fine
- Up to 5 years in prison

Additional Consequences

In addition to fines and imprisonment, courts may impose:

Restitution to the government
Forfeiture of property involved in the offense
Temporary or permanent disqualification from SNAP participation
Administrative penalties
Suspension from federal assistance programs

Retail stores may also lose their SNAP authorization.

Federal vs. Administrative Enforcement

Many SNAP violations begin as administrative investigations. However, when prosecutors believe there was intentional fraud, the case may escalate to federal criminal charges.

Federal cases are often investigated by:

USDA Office of Inspector General
Federal law enforcement agencies
U.S. Department of Justice

Common Defense Strategies

An accusation is not a conviction. Strong defenses often focus on intent and knowledge.

Lack of Fraudulent Intent

If inaccuracies resulted from:

Misunderstanding eligibility requirements
Complex income calculations
Clerical mistakes
Miscommunication

The government may struggle to prove criminal intent.

Insufficient Evidence

The prosecution must prove beyond a reasonable doubt that you knowingly violated SNAP regulations.

Diversion or Restitution-Based Resolutions

In some cases, defense counsel may negotiate:

Civil repayment agreements
Administrative resolution
Deferred prosecution
Restitution in lieu of incarceration

Frequently Asked Questions

Is food stamp fraud a federal crime?

Yes. SNAP is a federally funded program, and fraud may be prosecuted under 7 U.S.C. § 2024.

What is benefit trafficking?

Benefit trafficking refers to selling SNAP benefits for cash or exchanging them for non-eligible items.

Can I go to jail for SNAP fraud?

Yes. Depending on the amount involved, penalties can include up to 20 years in federal prison.

Are honest mistakes considered fraud?

No. Criminal charges require proof of knowing and intentional misconduct.

Can a retailer lose SNAP authorization?

Yes. Retail stores may face permanent disqualification from participating in the SNAP program.

What To Do If You Are Under Investigation

If you are contacted regarding SNAP fraud:

Do not make statements without legal counsel
Do not alter documents
Preserve financial records
Contact an experienced federal criminal defense attorney immediately

Early intervention can prevent escalation to criminal charges.

Speak With a Federal SNAP Fraud Defense Attorney

Food stamp fraud allegations can threaten your freedom, finances, and future eligibility for federal benefits.

If you are under investigation or charged under 7 U.S.C. § 2024, experienced federal defense counsel can evaluate your case, challenge the government's evidence, and pursue the best possible outcome.

Eisner Gorin LLP is here to help. Schedule your consultation at (818) 781-1570 or contact us here. Our law firm is based in Los Angeles.

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