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    Saturday, May 04, 2024

    How much fraud?

    Logic dictates that the extent of fraud involving the federally funded emergency food stamp program extends well beyond the couple of dozen Connecticut state employees now under investigation. The state suspects them of lying about their income levels to fraudulently receive aid in the wake of Tropical Storm Irene.

    As of Sept. 27 the U.S. Department of Agriculture (USDA) reported allocating more than $150 million in Disaster Supplemental Nutrition Assistance Program (D-SNAP) money to more than 1.1 million individuals in 472,000 households in 11 states for earlier disasters.

    In addition to those totals, the USDA awarded $97 million in D-SNAP relief to 293,500 households in 11 states related to tropical storms Irene and Lee. In Connecticut, 23,726 households received D-SNAP assistance.

    There is no reason to conclude that out of all those applicants only Connecticut workers allegedly tried to defraud some food money. Yet their malfeasance, if it proves true, was particularly egregious and stupid. Egregious because after making a good living off public funds, they apparently sought to steal additional public funds. Stupid because as public employees they should have known how easy it would be to check their income claims.

    These individuals put their jobs, pensions and perhaps freedom at risk for not much money, receiving payments averaging about $684 and topping out at $1,200. The payments came in the form of food-stamp debit cards, compensating for losses tied to food spoilage, missed wages or home repairs not covered by insurance.

    Applicants signed their income and asset statements "under penalty of perjury" for false information. Federal and/or state prosecutors should pursue criminal charges.

    The USDA requires that after a disaster, states review the applications from one-half of 1 percent of aid recipients and also all applications from employees of the state agency that administers the funds.

    Aaron Lavallee, a communications coordinator for the USDA, told us he would check to see if other states reported D-SNAP fraud.

    The intent of the program may be a good one - to quickly offer short-term food assistance benefits to families suffering after a disaster - but the Connecticut experience suggests the safeguards against fraud are inadequate.

    A federal review of D-SNAP aid distributed nationally is necessary to gauge the potential extent of fraud, to determine if states are meeting their obligation to do post-disaster reviews and establish ways to improve the program.

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