Welfare fraud is one of those activities that hurts more people than the thieves themselves. The most obvious secondary victims are the taxpayers, since welfare is funded with governmental funds. But worse, welfare cheaters negatively impact those folks who need
Welfare fraud is one of those activities that hurts more people than the thieves themselves.
The most obvious secondary victims are the taxpayers, since welfare is funded with governmental funds.
But worse, welfare cheaters negatively impact those folks who need the state’s help to right their family’s ship after a layoff, death in the family or other natural disasters.
The state of Hawai’i’s Department of Human Services Investigations office looks into allegations of welfare fraud in many areas, including:
– financial assistance
– medical assistance
– child care
– food stamps.
Investigators note that although DHS investigations “generally involve white-collar crimes: theft, unsworn falsification, mail fraud, and conspiracy, there are welfare fraud perpetrators who are also convicted of violent crimes as well.
“The funds available to the state of Hawaii for welfare payments are regulated by the Federal government and are limited; therefore welfare fraud involves not only a theft, but also results in a situation where others who are truly needy may receive reduced benefits because of lack of available funds” Barry Miyasato, the Supervisory Investigator for Kaua’i’s office said.
Although there are thousands of families receiving funds, most are not criminals.
Last year, statewide 157 individuals were referred for prosecution. On Kaua’i, Miyasato said his office works in conjunction with the Kaua’i County Prosecutor’s Office, specifically Chief Deputy Prosecutor Craig De Costa.
Ninety three individuals were convicted of welfare fraud statewide last year. Nine of those were on Kaua’i.
Statewide, another 817 individuals were disqualified for benefits administratively (within the department). Fifty-nine of those disqualified were living and receiving benefits on Kaua’i.
The sums stolen are surprisingly large.
Statewide, the dollar amount for cases that resulted in conviction were:
– for financial assistance, $1,056,897
– food stamps, $609,593
– medical assistance, $438,618
– child care $111,588.
On Kaua’i the dollar amount for convicted cases of all kinds totaled, $66,123.84.
The 59 cases handled administratively on the Garden Island totaled $108,785.32 in wayward benefits, going into the hands of thieves and con artists.
Miyasato said the most common welfare-fraud crimes are:
– unreported employment
– unreported self-employment income
– an absent parent actually residing in a home receiving benefits because there is only one adult there
– unreported assets
– children reported as living in the home (requiring support) who aren’t there
– not living where they say they do (rent)
– unreported marriages
– unreported absences from the state
– duplicate assistance
– creating a fictitious person to receive the benefits.
Being convicted of receiving overpayments of more than $20,000 is a class B felony and carries a maximum sentence of 10 years in prison, a maximum fine of $25,000 and of course restitution.
Stealing more than $300 in welfare payments is a Class C felony, punishable by a maximum of five years in prison, a maximum fine of $10,000 and restitution.
Citizens who know of someone receiving benefits illegally are asked to contact local or state investigators.
Complaints may be made in confidentiality according to Miyasato.
The Fraud Hotline for Kaua’i is (808) 241-7107, (808) 587-8444 for Oahu, (808) 243-5840 for Maui and Molokai, (808) 933-8899 the Hilo side of the Big Island and (808) 327-4768 for the Kona side.
