News from New York State Office of Temporary & Disability Assistance

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Joint Effort by State Agencies to Fight Food Stamp Fraud

Anti-Fraud Efforts Boosted as Access to Food Stamps Expanded

ALBANY, NY (06/02/2008; 1438)(readMedia)-- Commissioners David A. Hansell, of the State Office of Temporary and Disability Assistance (OTDA), and Denise O’Donnell, of the State Division of Criminal Justice Services, today announced that the State is stepping up efforts to combat Food Stamp fraud. The announcement was made before members of the New York Welfare Fraud Investigators Association, who are meeting in Saratoga Springs.

OTDA, in collaboration with the State Division of Criminal Justice Services, is working with law enforcement officials to expand investigation of retailers and clients who misuse the program, via the State Law Enforcement Bureau, also known as SLEB.

“This administration is firmly committed to increasing access to programs, such as food food stamps, for those who are eligible,” Commissioner Hansell said. “But we can only do that if we can ensure the public and those we serve that the programs are of the highest integrity.”

“Statistics compiled by DCJS show an upward trend in arrests and convictions for welfare fraud and food stamp abuse,” Commissioner O’Donnell said. “I believe and Commissioner Hansell believes we have to stop this trend and we are working together on a new initiative to combat fraud. We have initiated a new Food Stamp Fraud Initiative that will combine the State Police Special Investigations Unit and local law enforcement agencies in a concerted and focused effort to address this problem.”

SLEB is a designation given to OTDA by the U.S. Department of Agriculture, which gives OTDA the authority to enter into memorandums of understanding with local or state law enforcement agencies. These agreements allow for the investigation of grocery stores for food stamp trafficking and other violations of the Food Stamp program, such as the sale of non-food items. Once an agreement is negotiated, OTDA provides EBT cards for undercover investigators to purchase items from retailers using food stamps.

These arrangements have proven to be a very strong tool in combating the illegal use of Food Stamps by both merchants and clients. Not only has this curbed illegal activity but in doing so has created a strong deterrent to keep others from doing the same.

For example, in the past year, felony charges were brought Broome County against the owners of two convenience stores for the trafficking of $5,000 in benefits; a Schenectady merchant was charged with a felony count for misuse of Food Stamps; and similar charges were brought against the owners of three stores in Westchester County for trafficking as little as $100 in Food Stamp benefits.

“We have a zero tolerance approach to fraud,” Commissioner Hansell said.

There are currently four SLEB’s operating with active investigations. OTDA is currently engaged in negotiations to add three additional SLEBs in the near future.

OTDA is successfully reaching more Food Stamp eligible households through the Working Families Food Stamps Initiative and expects to reach even more through myBenefits.ny.gov, an interactive online tool that allows families to determine whether they are eligible for Food Stamps and other support programs. An 11-county pilot project that will allow for applications to be made online is also underway.

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