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Nonetheless, individuals who commit food stamp fraud may find themselves facing up to one year in jail and a substantial fine. For subsequent offenses, or for food stamp fraud involving larger dollar amounts, the accused may be facing up to five years in prison, several years of probation or an even bigger fine.
Lying on your SNAP application is bad, don't do it! You will have to pay back the benefits you received, you can get disqualified for 1 year to 10 years depending on the lie. WORSE case scenario, and yes it happens.
In California, making a false statement can be charged as a misdemeanor, and filing a fraudulent application can be charged as a felony. The penalty for a felony for welfare fraud is up to three years in jail and a fine up to $5,000.
The different offenses of Welfare and Institutions Code 10980, California's welfare fraud law. If you are convicted of making a false or misleading statement in an effort to obtain benefits, you face a misdemeanor, punishable by up to six months in jail and a maximum $500 fine.
One of the most common forms of food stamp fraud, known as food stamp trafficking, involves the illegal buying or selling of food stamp benefits for cash, drugs, weapons or other items of value. The Office of Inspector General (OIL), USDA, investigates criminal violations of the Food Stamp Act.
The USDA Office of the Inspector General verifies and investigates SNAP fraud reports. If you want to remain confidential, your name will be revealed only to the OIL. If report anonymously, you won't be contacted to answer any follow-up questions the agency may have, which could hinder the investigation.
The federal SNAP rules permit you to ask the court to let you pay back the money through public service. 7 C.F.R. § 273.18(g)(7). If you pay the money back or pay the claim through public service, you may be able to get the case dismissed, so you don't have a criminal record.
The amount HHS takes will go toward what you owe them. You will keep getting this lower amount until the overpayment is repaid. If you are not getting Food Supplement benefits, HHS will try to get you to agree to a repayment plan. If you do not agree, they can take your tax refund.

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