Unemployed and underemployed California citizens and families are often eligible to receive assistance with housing, food and other basic needs through California’s welfare programs.
In order to receive benefits from programs such as GAIN, CalWORKs, CalFresh and General Relief, applicants must provide accurate information about their income and living situation.
Providing inaccurate, false, or misleading information in order to receive welfare services that you would otherwise be ineligible for is a criminal offense known as welfare fraud under the California Welfare and Institutions Code 10980 WIC.
A welfare fraud conviction can result in hefty fines, jail time, probation and repayment of benefits that have been unlawfully received. If you’re under investigation or have been charged with welfare fraud, it’s important that you seek the assistance of a California criminal defense lawyer as soon as possible.
Early intervention by a skilled attorney can significantly improve the outcome of your case.
What is welfare fraud (California Welfare and Institutions Code 10980 WIC)?
Welfare fraud is defined under California Welfare and Institutions Code 10980 WIC as the willful making of false statements with the intent to obtain or continue to receive public aid or assistance that one is not entitled to receive. Some of the major sources of welfare in California include:
- CalFresh (food stamps),
- Medicare;
- General Relief,
- Head Start and
- CalWorks
The most common type of welfare fraud involves a welfare recipient providing false information to receive benefits. Providing false information can take many forms such as falsely claiming dependents, not reporting property or income, or failing to report benefits being received from another state. WIC10980 defines several acts that constitute welfare fraud, including:
- Intentionally falsifying or leaving out information on an application for benefits,
- Applying for the same benefits multiple times,
- Applying for benefits under multiple names, such as another member of the same household or a person who doesn’t exist,
- Using stolen personal information to apply for or receive benefits or
- Counterfeiting, selling, or transferring welfare benefits, such as an EBT card
Types of welfare fraud
There are two main categories of welfare fraud under WIC10980: ‘recipient fraud’ and ‘internal fraud.’ These categories are based on who is committing the fraud. Below is some more information about these two types of welfare fraud.
Recipient fraud
Recipient fraud occurs when an individual intentionally uses unlawful means to receive or attempt to receive welfare benefits. Recipient fraud is the most common type of California welfare fraud. Examples of this offense may include:
- Failing to report that a dependent has moved out of your house in order to receive a larger benefit,
- Under-reporting income in order to qualify for food stamps, or
- Applying for welfare services in California while still receiving benefits from another state in which you previously resided
Recipient fraud is not limited to falsifying or omitting information in order to receive benefits. Other activities performed by a welfare recipient, such as selling or transferring benefits to another person, also fall into this category.
Internal fraud
As opposed to recipient fraud, which is perpetrated by individuals who receive or attempt to receive benefits, internal fraud involves individuals who work for welfare programs. Under WIC10980, internal fraud occurs when a welfare program employee uses the power or access afforded to them by their position to assist others in unlawfully obtaining benefits. Internal fraud is less common than recipient fraud, but it is also more difficult for authorities to detect. Examples of internal fraud may include:
- A CalFresh employee who has access to EBT cards selling them to people outside of work,
- A caseworker changing the number of dependents on a family member’s application in order to increase their benefits, or
- A welfare program employee approving benefits for someone who they know doesn’t qualify
California welfare fraud penalties
Because WIC10980 covers a wide range of offenses, charges and penalties vary according to the type and severity of the violation. Some welfare fraud offenses are always charged as a misdemeanor or felony, while some offenses are “wobblers” that can be prosecuted as either, depending on the facts of the case.
For example, obtaining food stamps through fraudulent means is charged as a misdemeanor unless the value of the food stamps obtained is more than $950, in which case it is charged as a felony.
While penalties for misdemeanor welfare fraud may vary according to the fats of the case, typical penalties may include:
- Fines of up to $1,000, and
- Up to one year in county jail
Felony offenses and wobblers that are prosecuted as felonies carry harsher penalties and could include additional time added on to a standard prison sentence when the value of the fraudulently obtained services is excessively high. Most felony welfare fraud offenses are punishable by:
- Fines of up to $5,000, and
- Either 16 months, two years, or 3 years in California state prison
In some cases, it is possible to avoid jail time by repaying some of the benefits that were fraudulently obtained, or by participating in a diversion program. It may even be possible to have your charges dropped all together, especially if you are a first-time offender. Your criminal defense attorney can help you figure out if advocating for a payment plan or diversion program is the right strategy for you.
Related crimes
While WIC10980 covers a wide variety of welfare fraud offenses, there are several other related California offenses. The crimes most closely related to welfare fraud include:
- Perjury – Penal Code 118 PC
- Conspiracy – Penal Code 182 PC
- Forgery – Penal Code 470 PC
- Grand Theft – Penal Code 487 PC
Legal defenses against welfare fraud charges
If you’ve been accused of welfare fraud, there are a number of legal defense options available to you. An experienced California criminal defense attorney can work with you to form the strongest possible defense for you, based on the unique facts of your case. Below are a few of the most common defenses used against charges of violating WIC10980.
- Lack of intent – Applying for welfare benefits usually involves filling out forms and providing many different types of information. It is not uncommon for a person to make a mistake or unknowingly provide false information on an application. In order to be guilty of fraud, however, an individual’s actions must be willful and intentional. You may be able to avoid a conviction by demonstrating that any falsehoods or omissions were made by accident.
- Insufficient evidence – It is up to the prosecutor to prove your guilt to the court, beyond a reasonable doubt. If there’s not enough evidence against you or the evidence provided is very weak, it may not be adequate to make a conviction.
- Mistaken identity – There are many ways in which you could be wrongfully accused of committing fraud. For example, if someone else uses your name or identifying information to apply for benefits or file a claim, you could be implicated in the crime. However, if you can show that it was a different person who committed the unlawful act, you may not be found guilty.
California welfare fraud defense attorney
In welfare fraud cases, the sooner you seek the assistance of an experienced defense lawyer, the better chance you have of finding the best possible outcome for your case.
Los Angeles criminal defense attorney Robert M. Helfend has decades of experience representing clients facing charges of fraud and related crimes. He’s been recognized by SuperLawyers, Lead Counsel, the National Trial Lawyers Top 100, and other professional organizations for providing his clients with expert legal advice and aggressive defense strategies. If you’re facing welfare fraud charges, the Helfend Law Group is ready to help you. Call today to schedule your consultation – 1-800-834-6434.
Published January 28, 2025.