Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

EBT Fraud and Abuse
watchdog dot org ^ | 1-2013 | Shepherd

Posted on 01/06/2013 10:39:05 AM PST by doug from upland

EBT fraud and abuse: Looking past your state

By Todd Shepherd / July 24, 2012 / 7 Comments Fraud is skyrocketing as states shift from issuing paper-based food stamps to plastic, electronic benefits transfer cards preloaded with a monthly limit of cash intended only for food purchases.

Examples of fraud prompted Congress to take action, with President Obama signing a law in February intended to prevent EBT cardholders from spending their money on tattoos and at strip clubs, liquor stores and casinos.

Here’s a state-by-state listing of some EBT fraud stories:

Alabama: Not fraudulent, but are EBT cards becoming a status symbol? In Alabama, a place called the “Rose Supper Club” gives you $5 off the cover price if you show your EBT card. It’s a promotion called “Food Stamp Fridays.”

Arizona: A 15-month investigation found roughly $700-K in EBT fraud. 18 indictments.

California: $69 million in EBT funds withdrawn outside the state’s borders in recent years, including almost $12 million withdrawn in Las Vegas.

Colorado: EBT cards used at strip clubs, casinos. Denver Post editorializes that attempts to crack down on fraud might not be worth it.

Connecticut: 27 state workers fired, 10 others retire after investigation finds massive insider fraud by government bureaucrats.

Florida: Investigators find that sales of EBT cards at less than full value results in a $2-million swindle.

Georgia: Man pleads guilty to EBT card scam valued at $4.6 million, believed to be largest food stamp fraud ever in the state.

Illinois: Sting on “LINK” cards believed to have generated $40,000 monthly revenue for one of the families accused of participating in the alleged fraud ring.

Indiana: State worker accused of issuing EBT cards to fake recipients. Also, police arrest five in EBT scam believed to have netted $100-K.

Iowa: Grocer, a former City Council member, convicted of witness tampering during food stamp investigation and trial. In a separate story, Iowa inmates found to have been illegally receiving food stamp benefits while incarcerated.

Kansas: Authorities believe as many as 7,000 fraudulent users of EBT cards are costing the state $22-million.

Louisiana: Eight arrested in food stamp fraud. In late 2011, the state said it had 474 active investigations into possible EBT fraud/abuse.

Maine: “Tip of the iceberg” investigation nets five indictments.

Maryland: Believed to be No. 2 in the nation in EBT card fraud, with one in four card applications “showing evidence of fraud.”

Massachusetts: Stores accused of buying EBT cards at discounted prices, and hooking up EBT card users with crack cocaine dealers.

Missouri: Welfare cards being spent in such distant places as Florida and Hawaii.

New Hampshire: Report says 10 percent of all registered food stamp recipients live out of state.

Ohio: Audit finds 33,000 replacement EBT cards ordered in one year. “[M]ore than 1,500 people in Hamilton County have ordered 10 replacement cards or more since 2006.”

Texas: State faced $4 million in federal fines for errors in issuing food stamps.

Washington: Store owner sentenced to 21 months in prison: $170,000 in her bank account on the day of the raid.

Wisconsin: Nine county workers suspected in multi-year fraud that scammed $300-K or more.


TOPICS: Crime/Corruption; Government; News/Current Events
KEYWORDS: corruption; democrats; ebt; fraud; vegasbaby; welfare

1 posted on 01/06/2013 10:39:15 AM PST by doug from upland
[ Post Reply | Private Reply | View Replies]

To: All

I don’t mind helping children in need. No one should starve in this country. But those needing this assistance should be taking public transportation, buying food at supermarkets instead of restaurants, and should not have the luxury of iphones and 52” big screens. I do not want to pay for that.


2 posted on 01/06/2013 10:42:00 AM PST by doug from upland (Obama and the leftists - destroying our country one day at a time)
[ Post Reply | Private Reply | To 1 | View Replies]

To: doug from upland

This is why MASSIVE cuts in the federal budget are justified.

Waste, fraud, and abuse. It’s everywhere. If the money were cut — really, seriously cut — there would still be enough money to take care of the people who need to be taken care of. And if those truly needy people didn’t get the help they need and deserve, then it would be the fault of the thieving federal bureaucrats — not because the productive folks who contribute the fruits of their labor aren’t “paying their fair share”.


3 posted on 01/06/2013 10:48:38 AM PST by ClearCase_guy (Nothing will change until after the war.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: doug from upland
and just exactly HOW will he accomplish that???

go back to paper food stamps...

4 posted on 01/06/2013 10:53:22 AM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Chode

Here in Ohio, when I use my debit card at Giant Eagle supermarket, the machine always asks if I want cash back. I think the limit is 40 or 60 dollars. If one uses an EBT card, do they get that same “cash back?” offer? Buy a pack of hot dogs, and walk out with 40 bucks?


5 posted on 01/06/2013 11:02:30 AM PST by Dr. Bogus Pachysandra ( Ya can't pick up a turd by the clean end!)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Chode

Why can’t we have ‘food stamp only’ stores? EBT only accepted there and they only carry food, no candy or crap.
I am so sick of seeing people by their food with EBT then buy a bunch of crap with cash. If you have enough $$ to send on junk food you sure as hell don’t need my $$ too.


6 posted on 01/06/2013 11:07:25 AM PST by enraged
[ Post Reply | Private Reply | To 4 | View Replies]

To: doug from upland

When I got gas at Walmart a couple of days ago I noticed on the pump a sign that said something like

EBT CASH CARD ACCEPTED FOR PAYMENT


7 posted on 01/06/2013 11:07:49 AM PST by Tennessee Nana
[ Post Reply | Private Reply | To 1 | View Replies]

To: doug from upland
Massachusetts: Stores accused of buying EBT cards at discounted prices, and hooking up EBT card users with crack cocaine dealers.

Howie Carr,a long time Boston columnist and talk host, had a show just the other day about welfare fraud in Massachusetts.He told a story about the state having mailed,first class,a letter to every welfare recipient in the state encouraging them to register to vote.He said that the Boston Herald,his paper,filed a Freedom Of Information Act request for details on how many of those letters were returned undelivered (the state didn't want to give up that info).The Herald got the info and something like 19,000 of the letters were returned "address/addressee unknown".I think he said that that represented something like 20% of the letters sent out.It doesn't take a rocket scientist to figure out what those 19,000 recipients are all about.

8 posted on 01/06/2013 11:12:48 AM PST by Gay State Conservative (When Robbing Peter To Pay Paul,One Can Always Count On Paul's Cooperation)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Dr. Bogus Pachysandra

If one uses an EBT card, do they get that same “cash back?” offer?
______________________________________

Yes then they buy cigarettes, booze gas drugs etc..


9 posted on 01/06/2013 11:13:58 AM PST by Tennessee Nana
[ Post Reply | Private Reply | To 5 | View Replies]

To: doug from upland

Right before Christmas, I literally witnessed a stinking, homeless bum use his EBT to buy an 18-pack of Bud at Rite Aid. There’s a reason why I don’t give $$ except FR.

Obviously, the law has a loophole about buying from liquour stores when you can buy booze at any store in America. Anywhere and everywhere in L.A., they boast EBT CARDS ACCEPTED from Pollo Loco to Fallas Paredes to ROSS stores.


10 posted on 01/06/2013 11:17:57 AM PST by max americana (Make the world a better place by punching a liberal in the face)
[ Post Reply | Private Reply | To 2 | View Replies]

To: doug from upland

i believe of people want to help other people, the do it through their own private, voluntary donations, and that they get a tax deduction for the entire amount donated. i do not believe in government confiscating money from anyone to give as charity. government charity is not charity. it is forced confiscation and they give it to who they want.

i am for people deciding who to give their own money to, in what amounts, when they want to, and getting the full deduction for it. never government.


11 posted on 01/06/2013 11:21:21 AM PST by Secret Agent Man (I can neither confirm or deny that; even if I could, I couldn't - it's classified.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: doug from upland

As was pointed out in another thread, if a Congressman tries to do the slightest bit to fix any spending problem, 5,000 lobbyists will descend on his office. With Welfare, they’ll also picket his district office and eventually they’ll bus in a hundred shabby-looking Welfare recipients to picket his home and trample his wife’s (and next-door neighbor’s) daisies.


12 posted on 01/06/2013 11:27:16 AM PST by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Tennessee Nana; Dr. Bogus Pachysandra
Yes then they buy cigarettes, booze gas drugs etc..

In some cases this is true - but those people have 2 different accounts on the EBT card. One is for food and only food (food stamps) and the other is what we used to call welfare and is now call TANF (Temporary Assistance to Needy Families.)

EBT stands for Electronic Benefits Transfer - and all forms of "welfare" are included on the card. One can not (legally) get cash if one is only receiving food stamps, but can if they are receiving TANF.

13 posted on 01/06/2013 11:28:54 AM PST by Gabz (Democrats for Voldemort.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Dr. Bogus Pachysandra
wouldn't surprise me one bit...
14 posted on 01/06/2013 11:37:34 AM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
[ Post Reply | Private Reply | To 5 | View Replies]

To: enraged
100%
15 posted on 01/06/2013 11:38:27 AM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Gabz

Thanks Gabz!


16 posted on 01/06/2013 11:57:13 AM PST by Dr. Bogus Pachysandra ( Ya can't pick up a turd by the clean end!)
[ Post Reply | Private Reply | To 13 | View Replies]

To: doug from upland

If these vermin just put half the effort into legitimate endevors as they do in scamming systems, they’d probably be quite legally successful.


17 posted on 01/06/2013 12:04:04 PM PST by crosshairs (They are only assault weapons in the hands of tyrannical governments and criminals. Ban both.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks doug from upland.


18 posted on 01/06/2013 12:04:17 PM PST by SunkenCiv (Romney would have been worse, if you're a dumb ass.)
[ Post Reply | Private Reply | View Replies]

To: doug from upland
The only food we should be giving these people is not an "EBT Card" but a scientifically formulated gruel that makes it's own gravy when mixed with water and has a shelf life of 20 years....

We can also stockpile this stuff to use for foreign aide operations and for disaster relief.

19 posted on 01/06/2013 12:07:43 PM PST by GraceG
[ Post Reply | Private Reply | To 1 | View Replies]

To: doug from upland

Payroll taxes should be deducted from all taxpayer funded benefits like welfare, food stamps, and unemployment. They will eventually benefit from SS and Medicare/Medicaid programs. Let them pay in. Just consider it a 6.2 percent across the board pay cut for free loaders.


20 posted on 01/06/2013 12:10:34 PM PST by csmusaret (I will give Obama credit for one thing- he is living proof that familiarity breeds contempt.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: enraged
Why can’t we have ‘food stamp only’ stores

We have a 'WIC only' store in my town. WIC (Women, Infants, Children) is much more strict on what you can buy - only healthy, non luxury items, like baby formula, milk, orange juice, oatmeal, etc. The store carries only these items.

21 posted on 01/06/2013 12:26:23 PM PST by informavoracious (God help us.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: doug from upland

Someone I work with has a niece, a single mother with 3 young children (different fathers). Right before obammy’s first election she was receiving $700 per month in EBT money but had received notice that the amount would be reduced.

After obammy won, the state welfare agency did not reduce her benefits but did in fact increase it to $900 per month. I feed my family of 4 ADULTS on less than half of that.

What does this single mother do with all of that EBT money that she couldn’t possibly spend on food? She takes a friend shopping, uses the EBT card and takes 50% in cash for the amount of the groceries. Multiply this by millions on food stamps and you understand why we are broke. This insanity must stop but we know it won’t!


22 posted on 01/06/2013 12:31:56 PM PST by Artaniss (Getting Fed Up)
[ Post Reply | Private Reply | To 2 | View Replies]

To: doug from upland

When I go to the grocery store today, I find that my money only buys two-thirds of the groceries that it bought only four years ago. I always wondered what happened to the other one-third of my groceries. I see now who has them.


23 posted on 01/06/2013 12:38:28 PM PST by Hoodat ("As for God, His way is perfect" - Psalm 18:30)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Dr. Bogus Pachysandra

Not a problem. I am as opposed to the fraud and abuse of the welfare system as the next FReeper, but I am also equally opposed to those who actually do utilize the system properly being lumped into the same category as the fraudsters because some folks just don’t understand the system.

Please don’t think I am accusing you of such, I am not. I just used the comments as a jumping off point. I personally know someone who was convicted of massive welfare fraud and I just hate to see those who actually need it and use it properly maligned because of people such as that woman.


24 posted on 01/06/2013 12:41:33 PM PST by Gabz (Democrats for Voldemort.)
[ Post Reply | Private Reply | To 16 | View Replies]

To: doug from upland
Doug, back when food stamps first came out, in Mass, you could buy a book for 50 cents on the dollar cash. The stamps had to be undetached or the stores wouldn't take them. I can't remember how many years ago.
25 posted on 01/06/2013 12:51:27 PM PST by Little Bill (A)
[ Post Reply | Private Reply | To 1 | View Replies]

To: doug from upland
Nobody IS starving to death in the U.S.A.

Period.

26 posted on 01/06/2013 12:54:48 PM PST by Osage Orange (MOLON LABE)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Little Bill
That's still going on but you get propositioned for the EBT card holder to buy your grocery list for you, for fifty cents on the dollar and the cash transaction for merchandise occurs afterward. If you wonder why there's such a mad rush on sale prices for meats and whole fryers by EBT card holders,wiping them out by the cartload, they're making a little extra money by not reselling at the sale price.
27 posted on 01/06/2013 12:58:59 PM PST by RegulatorCountry
[ Post Reply | Private Reply | To 25 | View Replies]

To: doug from upland

Hungry? Come to the warehouse and get just enough staples to carry you through the week. Good, healthy, nutritious food that you take home and cook. Probably help with the obesity problem with the “poor”.


28 posted on 01/06/2013 1:10:33 PM PST by Eagles6 (Valley Forge Redux)
[ Post Reply | Private Reply | To 2 | View Replies]

To: RegulatorCountry

Sounds reasonable. I used to love getting the wellfare cheese for short money, real short. Made the best Grilled cheese and tomato sandwiches, short dog of Irish Rose maybe a buck at the time.


29 posted on 01/06/2013 1:11:15 PM PST by Little Bill (A)
[ Post Reply | Private Reply | To 27 | View Replies]

To: crosshairs
If these vermin just put half the effort into legitimate endevors as they do in scamming systems, they’d probably be quite legally successful.

No, scamming is their only skill. It was their parents only skill and the only thing they could teach their children.

To scam all one has to do is stand in the appropriate line and tell the same lies they have being hearing from their family and friends all of their lives.

They don't have to be able to read or write or think as the welfare worker does everything they can to pass out tax payer's money because these are their people.

It is now a self perpetuating process and if it break down the recipients will have to turn to crime as it is the only other "skill" they have been taught.

30 posted on 01/06/2013 1:34:09 PM PST by Eaker (Manners are good when one may have to back up his acts with his life. — Robert A. Heinlein.)
[ Post Reply | Private Reply | To 17 | View Replies]

To: doug from upland
Add to the fraud and abuse, the duplicity of her majesty Queen-in-her-own-mind Michelle Batwings Obama. She has her nose in the school lunches and demands little kids knuckle under to Federal guidelines. At the same time, you can use an ENTIRE card almost anywhere. Last time I checked a gallon of milk, a loaf of bread, a slim Jim, and a Magnum 45 was cheaper at a grocery store rather than the local 7-11 or bodega. To be consistent and not their typical hypocritical selves, the Obamas need to step in and eliminate ENTIRE card use to established chain grocery stores and only to foods that need to be cooked to be consumed. Jerkwads.
31 posted on 01/06/2013 1:51:47 PM PST by cashless (Obama told us he would side with Muslims if the political winds shifted in an ugly direction. Ready?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cashless

I hate spell check on this phone.


32 posted on 01/06/2013 2:00:26 PM PST by cashless (Obama told us he would side with Muslims if the political winds shifted in an ugly direction. Ready?)
[ Post Reply | Private Reply | To 31 | View Replies]

To: Tennessee Nana

I saw that for the first time yesterday.


33 posted on 01/06/2013 2:00:40 PM PST by razorback-bert (I'm in shape. Round is a shape isn't it?)
[ Post Reply | Private Reply | To 7 | View Replies]

To: doug from upland

My wife works at a WMSC as CSR.....

EBT fraud is 100 x worse than anything you an imagine....

I can tell horror stories that will make you spit nails ...

Anyone who thinks the broken “system” can be fixed is living on a different planet...

The only fix is crash and burn ....


34 posted on 01/06/2013 2:12:01 PM PST by JZoback
[ Post Reply | Private Reply | To 1 | View Replies]

To: Gabz

“Temporary”

Ha ha, that’s a good one.


35 posted on 01/06/2013 2:47:09 PM PST by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
[ Post Reply | Private Reply | To 13 | View Replies]

To: JZoback

WIDKWTISF

(well, I don’t know what those initials stand for)


36 posted on 01/06/2013 5:58:47 PM PST by doug from upland (Obama and the leftists - destroying our country one day at a time)
[ Post Reply | Private Reply | To 34 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson