Public Assistance Fraud by a Benefit Recipient in Minnesota

Public assistance fraud is a serious criminal allegation in Minnesota, and enforcement is ramping up. If you are accused of wrongfully receiving public benefits, you should take the matter seriously from the beginning. A public assistance fraud case can lead to criminal charges, restitution, probation, jail or prison time, and disqualification from future benefits.

For information about fraud charges against providers or other organizations learn more here.

What counts as public assistance fraud by a benefit recipient?

In Minnesota, public assistance fraud is generally charged under Minn. Stat. § 256.98, which makes it a crime to wrongfully obtain assistance. The statute applies to several types of government benefits, including programs such as MFIP, SNAP, MinnesotaCare, Medical Assistance (Medicaid), General Assistance, housing support, child care assistance, and emergency assistance programs.

A person may be accused of public assistance fraud for allegedly:

• making a false statement on an application or renewal form;
• failing to report income, employment, household members, assets, or changes in living arrangements;
• continuing to receive benefits after becoming ineligible;
• using another person’s information to obtain benefits;
• helping someone else obtain benefits they were not entitled to receive; or
• submitting false claims as a provider of subsidized child care or other public benefit services.

The prosecution must generally prove that the person acted with intent to defeat the purposes of the public assistance laws.

What if I qualified for benefits, but obtained more than I qualified for?

Under Minnesota law, the amount of assistance incorrectly paid is generally the difference between what the person actually received and what the person would have received if the allegedly concealed or misrepresented facts had been known. That calculation should be reviewed carefully. The government’s number may not account for partial eligibility, allowable deductions, timing issues, household changes, or benefits the person would still have received even if all information had been reported correctly.

What are the possible penalties?

A violation is treated as theft and punishment is determined according to Minnesota’s theft statute. This means potential penalties often depend on the amount of money allegedly obtained. In many cases, the alleged overpayment accumulates over months or years. A small monthly benefit issue can become a felony-level allegation if the county or State claims the person failed to report information over an extended period.

Potential consequences include not only felony convictions and jail or prison time, but may include restitution and disqualification from receiving benefits in the future.

Can I be convicted of public assistance fraud based on a mistake?

Importantly, the state must prove that the person intended to commit the fraud. Public assistance programs have complicated eligibility rules, so a person may be accused of fraud based on facts that are not as simple as they first appear.

Common issues include whether:

• the person actually understood the reporting requirement;
• the forms were clear;
• the county already had the information;
• the alleged income belonged to the accused person;
• a household member actually lived in the home;
• the benefit calculation was correct;
• the alleged overpayment amount is inflated;
• the conduct was intentional or merely negligent; and
• the government can prove the timeline of alleged concealment.

The difference between a criminal act and an honest mistake may turn on the specific notices, applications, renewal forms, interviews, and communications between the person and the county.

Facing a public assistance fraud charge in Minnesota?

A public assistance fraud accusation does not automatically mean you committed a crime. The state must prove the charge, including the required intent and the amount of the overpayment. An experienced attorney who understands public assistance benefits fraud in Minnesota can help. Contact us for a free case review. Call Sieben & Cotter at 651-455-1555 to arrange your consultation, or send a request for more information.