SNAP Fraud Attorney in New York City: HRA Investigations and Penal Law Article 158 Charges

How Recipient SNAP Fraud Cases Start in New York City

Most HRA investigations do not start with a tip. They start with a computer match. HRA and the State Office of Temporary and Disability Assistance (OTDA) run SNAP case data against outside records, and a mismatch opens a file. The common sources are:

• Wage matches: New York State Department of Labor quarterly wage reports and the National Directory of New Hires show employment or wages that were not reported at application or recertification.
• Interstate matches: the PARIS match flags a person receiving benefits in New York and another state at the same time.
• Residency and EBT data: months of EBT purchases in another state, or a card used almost entirely outside the five boroughs, raise a question about where the household actually lives.
• Household composition: a spouse, partner, or parent whose income was never listed, often surfaced through a lease, a tax return, a school record, or a landlord. Cases built on a claimed separation are addressed on our page about lying about separation for food stamps and Medicaid.
• Asset and income matches: IRS unearned income data, bank account matches, lottery winnings, and Social Security records.
• Complaints: calls to the HRA fraud hotline from ex-partners, neighbors, or landlords.

Applications are also screened before approval through the Front End Detection System (FEDS). A FEDS referral can lead to a denial rather than an overpayment, but the same facts can still be referred for investigation.

The HRA Bureau of Fraud Investigation Letter and Interview

HRA's investigative arm is the Bureau of Fraud Investigation (BFI), part of the Investigation, Revenue and Enforcement Administration. When BFI opens a case, you usually receive a letter asking you to appear for an investigative interview on a set date, often at 250 Church Street in lower Manhattan or at a borough office named in the letter. The letter typically lists documents to bring: pay stubs, bank statements, a lease, utility bills, tax returns, and identification for every household member.

You have the right to bring a lawyer to this interview, and you should. The investigator already has the data match in the file. The purpose of the interview is to get you to confirm it, explain it, or sign a statement. A signed statement from a BFI interview becomes the centerpiece of an Administrative Disqualification Hearing and of any later criminal complaint. Interviews are not recorded for your benefit, and the investigator's summary of what you said is what the DA will read.

The letter often warns that failing to appear may affect your benefits. Not appearing does not end the investigation. BFI can still calculate an overpayment from the records it has and refer the case. The better course is to have counsel review the letter, obtain the documents in advance, and decide what should be said, what should be submitted in writing, and what should not be answered at all. In some cases the correct move is to attend and produce documents that show the match is wrong. In others, where the facts point toward a criminal referral, it is to decline to give a statement.

Separate from BFI, HRA's Eligibility Verification Review unit may call you in for a document review as part of an application or recertification. That is not a fraud interview, but inconsistent answers there can trigger one.

The Civil Track: Overpayment Claims and Recoupment

Every civil case ends in a claim, which is HRA's demand to repay benefits it says you were not entitled to. Federal SNAP rules at 7 C.F.R. § 273.18 recognize three kinds of claims, and the label matters:

• Agency error (AE): HRA made the mistake. You still owe the money, but there is no penalty and recoupment is limited to 10 percent of the monthly allotment or $10, whichever is greater.
• Inadvertent household error (IHE): you made a mistake without intent to defraud. Same 10 percent recoupment rate, no disqualification.
• Intentional Program Violation (IPV): HRA claims you knowingly gave false or incomplete information. Recoupment rises to 20 percent of the allotment or $20, whichever is greater, and a disqualification period attaches.

HRA may calculate the claim back as far as six years before it discovered the overpayment. That is longer than either criminal limitations period, which is one reason a civil claim can cover months the DA cannot charge. The calculation is done month by month: HRA recomputes what the household should have received with the unreported income or member included and treats the difference as the overpayment. Errors in that arithmetic are common, and because the same number sets the felony grade in a criminal case, the calculation is the first thing we audit.

If you are no longer receiving SNAP, HRA will send a repayment demand and may offer a repayment agreement. Unpaid claims can be referred to the federal Treasury Offset Program, which intercepts federal tax refunds and certain other federal payments. Signing a repayment agreement is not an admission of fraud, but the wording of the agreement should be reviewed before you sign, because HRA will sometimes present a repayment form together with an IPV waiver.

Fair Hearing or Administrative Disqualification Hearing: Two Different Proceedings

Clients often use the words interchangeably, but a fair hearing and an Administrative Disqualification Hearing (ADH) are different proceedings with different consequences.

Fair Hearing

A fair hearing is your challenge to an HRA action: a denial, a reduction, a case closing, or an overpayment claim you dispute. You request it from OTDA's Office of Administrative Hearings. For SNAP, the request must be made within 90 days of the notice date under 18 NYCRR § 358-3.5. If the notice reduces or stops your benefits and you want them continued unchanged while the hearing is pending ("aid continuing"), you must request the hearing before the effective date on the notice, which is normally 10 days from the notice date. You are entitled to see HRA's evidence packet before the hearing under 18 NYCRR § 358-3.7. The hearing officer is a State administrative law judge, not an HRA employee. A fair hearing decides whether HRA's action was correct. It does not by itself find fraud.

Administrative Disqualification Hearing

An ADH is HRA's proceeding against you. HRA asks OTDA to find that you committed an IPV under 18 NYCRR Part 359 and 7 C.F.R. § 273.16. You receive a notice at least 30 days before the hearing date. HRA must prove the IPV by clear and convincing evidence, a higher standard than the preponderance standard in a fair hearing but lower than the criminal standard. If you do not appear, the hearing goes forward without you and a decision issues on HRA's papers. If you missed it for good cause, you have a short window, generally 10 days from the decision, to ask that it be reopened.

An ADH can be scheduled even if you no longer receive benefits. The disqualification is held in reserve and applied the next time you apply. The procedure, the evidence HRA typically submits, and how we prepare for the hearing are covered in detail on our administrative disqualification hearing page.

IPV Disqualification Periods in New York

If an IPV is found, the disqualification runs against the individual who made the false statement, not the whole household. The remaining household members keep their eligibility, though the disqualified person's income still counts in the budget and the allotment is recomputed under 7 C.F.R. § 273.11(c). The periods under 18 NYCRR § 359.9, which track the federal schedule, are:

• First IPV: 12 months.
• Second IPV: 24 months.
• Third IPV: permanent.
• Trading SNAP for controlled substances: 24 months for a first finding, permanent for a second.
• Trading SNAP for firearms, ammunition, or explosives: permanent on the first finding.
• Trafficking benefits of $500 or more: permanent on the first finding.
• Duplicate participation or false identity or residence to receive multiple benefits: 10 years.

The disqualification follows you between states. Cash assistance has its own IPV schedule under Social Services Law § 145-c, so a case involving both SNAP and cash assistance can produce two separate sanctions. Medicaid is not disqualified by a SNAP IPV, but the same unreported income may prompt HRA to pursue a Medicaid overpayment separately; see our Medicaid fraud attorney page.

Waivers and Disqualification Consent Agreements

HRA frequently offers a way to skip the hearing. A waiver of the ADH is an agreement to accept the IPV finding and the disqualification without a hearing. A Disqualification Consent Agreement (DCA) is the version used when the case has been or may be referred for prosecution; it is often presented as part of a criminal disposition. Signing either one is an admission that an IPV occurred, counts as your first (or next) IPV for the tier schedule above, and starts the disqualification clock.

A waiver can be the right outcome when the evidence is strong, the amount is small, and the alternative is a criminal referral. It is the wrong outcome when the overpayment was agency error, when the alleged false statement was never made by you, or when the dollar figure is inflated. The decision should be made with the full HRA file in hand, not at the end of a BFI interview.

The Criminal Track: Welfare Fraud Under Penal Law Article 158

HRA refers a portion of its IPV cases to the District Attorney of the county where the recipient lives: Kings, Queens, Bronx, New York, or Richmond. Each office has prosecutors who handle public-benefits cases, and charging practice varies by borough. In general, referrals are more likely where the alleged overpayment is well above the $1,000 felony threshold, where the period of unreported income is long, where cash assistance or Medicaid is involved along with SNAP, and where there is a signed statement or clear documentary proof of a false filing.

Penal Law § 158.00 defines a "fraudulent welfare act" as knowingly, and with intent to defraud, making a false statement or omitting material information to obtain public assistance benefits. Article 158 then grades the offense by the value of benefits wrongfully obtained:

• PL § 158.05, welfare fraud in the fifth degree: class A misdemeanor, any amount.
• PL § 158.10, fourth degree: class E felony, more than $1,000.
• PL § 158.15, third degree: class D felony, more than $3,000.
• PL § 158.20, second degree: class C felony, more than $50,000.
• PL § 158.25, first degree: class B felony, more than $1,000,000.

Prosecutors commonly add offering a false instrument for filing in the second degree (PL § 175.30, class A misdemeanor) or first degree (PL § 175.35, class E felony) for each application or recertification form, and grand larceny in the fourth degree (PL § 155.30) or third degree (PL § 155.35) on the same dollar thresholds. Allegations that you sold or lent your EBT card are charged under PL §§ 158.30 and 158.35 (criminal use of a public benefit card), and possession of multiple cards belonging to others is charged under PL §§ 158.40 through 158.50.

Sentencing exposure follows the class. A class A misdemeanor carries up to 364 days in jail, probation, or a conditional discharge. A class E felony carries an indeterminate term of up to 1⅓ to 4 years, a class D felony up to 2⅓ to 7 years, and a class C felony up to 5 to 15 years, but for a first felony offender the court may instead impose probation, a definite jail term of one year or less, or a split sentence. Restitution to HRA under PL § 60.27 is almost always a condition of any plea, and the restitution amount is negotiated alongside the charge. Most recipient cases in New York City are charged at the misdemeanor or class E level. What a first charge typically looks like and how it resolves is discussed on our first offense food stamp fraud page.

Statute of Limitations: CPL § 30.10

Under Criminal Procedure Law § 30.10, a misdemeanor must be charged within two years and a felony within five years of the offense. The period runs from the last fraudulent act, which in a welfare fraud case is usually the last recertification or the last month benefits were received on the false information, and it stops when the accusatory instrument is filed. Time spent continuously outside New York, or during which your whereabouts were unknown and unascertainable with reasonable diligence, is excluded under CPL § 30.10(4)(a).

The limitations period matters most in setting the grade. A case HRA built on six years of overpayments can only be charged criminally on the months inside the five-year felony window, and if those months total $1,000 or less the felony counts fall away. We routinely find that the DA's complaint aggregates months that are time-barred, and the first motion in the case addresses that.

What to Do Depending on Where Your Case Is

You received an HRA BFI interview letter

Do not ignore it and do not attend alone. Gather the documents requested and bring them to a lawyer before the interview date. Request your HRA case record. Decide with counsel whether to attend, what to produce, and whether to give any statement. If the letter also includes a notice of an overpayment or a proposed action on your case, calendar the 10-day aid-continuing deadline and the 90-day fair hearing deadline. Do not sign a waiver or DCA at the interview.

You received an ADH notice

Request HRA's evidence packet, confirm the hearing date, and prepare to appear. HRA's proof is usually the BFI investigator's report, the wage or PARIS match, the application and recertification forms with your signature, and the overpayment computation. The defenses are the ones below: the statement was not false, it was not knowing, the agency had the information, or the computation is wrong. If you cannot appear, request an adjournment in writing before the date.

You received a Desk Appearance Ticket

A DAT under CPL § 150.10 means the DA has filed or will file a misdemeanor complaint in the borough Criminal Court. Appear on the return date. In a misdemeanor case the available dispositions include an adjournment in contemplation of dismissal under CPL § 170.55, which results in dismissal and sealing after six months if no new arrest occurs; a plea to a non-criminal violation such as disorderly conduct under PL § 240.20; or dismissal in the interest of justice under CPL § 170.40. The DA will usually want restitution and a DCA as part of any of these. An ACD alone is not a court finding of an IPV; the DCA is what triggers the disqualification, so its terms should be negotiated, not assumed.

You were arrested on a felony complaint or indicted

A felony complaint is arraigned in Criminal Court and the case moves to the grand jury. You have the right under CPL § 190.50 to testify before the grand jury if you serve notice, and in a case that turns on intent that decision has to be made carefully. Pre-indictment, the DA can be asked to reduce the charge to a misdemeanor based on a corrected loss figure or limitations defects. After indictment, the case is in Supreme Court, and an ACD is no longer available. The routes are a reduction to a misdemeanor plea, a motion to dismiss in the interest of justice under CPL § 210.40, a motion to inspect the grand jury minutes and dismiss for legally insufficient evidence under CPL § 210.30, or trial. Bail is rarely an issue in recipient cases, which are non-violent and generally qualify for release.

How We Defend Recipient SNAP Fraud Cases in New York City

1. The amount: We rebuild HRA's overpayment month by month. We remove months outside CPL § 30.10, months in which the household was in fact eligible at the same allotment even with the unreported income, months where the income fell below the reporting threshold in effect for the household, and months where HRA had the information and failed to act on it. The grade of the charge and the restitution figure both move with this number.
2. Intent: Welfare fraud requires intent to defraud. An overpayment can be entirely accurate and still not be a crime. Reliance on what a caseworker said, confusion about whether a boyfriend who stays over three nights a week is a "household member," a form completed by a worker or a relative, limited English and no interpreter, and the simplified or periodic reporting rules that did not require every change to be reported mid-certification are all facts that defeat intent.
3. Agency error: HRA's own records often show the information was reported, in a recertification packet, in a phone call logged in the case notes, or in a document submitted to another HRA program. If HRA had it, the claim is agency error, not IPV, and the criminal case loses its false-statement element.
4. The statements: We examine how the BFI interview was conducted, what you were told about counsel, whether the written statement was drafted by the investigator and signed under pressure, and whether it accurately records what you said. In the criminal case, a statement later used by the DA is subject to a Huntley hearing on voluntariness.
5. Who signed: Article 158 and PL § 175.30 require that you made or caused the false filing. Where a form was signed by another household member, submitted by a facilitator, or completed online by someone else, that element is contested.
6. Resolution without a record: Where the facts are against the client, we work to resolve the matter on the civil side with a repayment agreement, or on the criminal side with an ACD or violation plea, and we negotiate the DCA so the disqualification tier and effective date are as favorable as the rules allow.

Collateral Consequences Beyond the SNAP Case

• Immigration: Welfare fraud is a fraud offense and is generally treated as a crime involving moral turpitude. A conviction with a loss to the government over $10,000 can be an aggravated felony under INA § 101(a)(43)(M)(i), which carries mandatory removal consequences. For a non-citizen, the plea structure and the restitution figure must be reviewed for immigration effect before anything is signed.
• Housing: NYCHA and Section 8 programs treat unreported income and fraud findings as grounds for termination and may pursue their own repayment claim for rent that was underpaid on the same income.
• Other benefits: A SNAP IPV does not disqualify you from Medicaid or SSI, but the same facts can generate separate overpayment claims from each program.
• Employment and licensing: Home health aides, school employees, security guards, and licensed professionals face agency reporting obligations and fitness reviews after a fraud conviction. A Certificate of Relief from Disabilities under Correction Law § 702 can be sought at sentencing.
• Sealing: An ACD seals automatically on dismissal. Convictions may be sealed under CPL § 160.59 on application after 10 years, and under the Clean Slate Act, CPL § 160.57, misdemeanors seal automatically three years after sentence or release and eligible felonies after eight years, provided you have no pending charges or intervening convictions.

Cases Outside New York City

Outside the five boroughs, the county Department of Social Services (DSS) handles the investigation instead of HRA, usually through its own fraud or special investigations unit, and refers cases to the county District Attorney. The State rules are the same: OTDA conducts the fair hearing and the ADH, 18 NYCRR Part 359 sets the disqualification periods, and Penal Law Article 158 governs the criminal charge. Nassau, Suffolk, and Westchester DSS each run their own investigative units, and some counties refer a larger share of cases for prosecution than HRA does. We handle recipient cases in those counties as well.

Related Pages on SNAP Fraud

• First offense food stamp fraud: what a first misdemeanor charge looks like and how it typically resolves.
• Administrative disqualification hearing: preparing for and defending an ADH before OTDA.
• Lying about separation for food stamps and Medicaid: household composition and marital status cases.
• Attorney for USDA SNAP violations: retailer trafficking charge letters, civil money penalties, and federal prosecution.
• Medicaid fraud attorney: when the same unreported income produces a Medicaid case.
• Abogado de fraude de sellos: this information in Spanish.

Frequently Asked Questions

Is SNAP fraud a felony in New York?

It can be. Welfare fraud in the fifth degree, PL § 158.05, is a class A misdemeanor at any amount. Once the alleged overpayment exceeds $1,000 the charge becomes a class E felony under PL § 158.10, and the class rises at $3,000, $50,000, and $1,000,000.

How long does HRA or the DA have to bring a case?

HRA's civil claim can reach back up to six years before the overpayment was discovered. The criminal limitations periods under CPL § 30.10 are two years for a misdemeanor and five years for a felony, measured from the last fraudulent act, with tolling for time spent outside New York.

Will I go to jail for a first offense?

There is no automatic answer. Jail is a legal possibility for any Article 158 conviction. In practice, a first misdemeanor case in New York City with restitution is often resolved with an ACD, a violation plea, or a non-jail sentence, and a first class E felony is often reduced. The amount, the length of the conduct, the borough, and whether there is a signed statement all affect the outcome.

Can I keep my benefits while the case is pending?

An ADH does not reduce your benefits until a decision issues against you. If HRA sends a notice reducing or closing your case, you can keep benefits unchanged while a fair hearing is pending if you request the hearing before the effective date on the notice, usually within 10 days. Once an IPV is found, the disqualification applies only to you, and the rest of the household continues to receive a recomputed allotment.

Do I have to go to the BFI interview, and can I bring a lawyer?

You are not required to give a statement, and you may bring an attorney. Skipping the interview does not stop the investigation. Attending with counsel and a prepared set of documents is usually the better course, and in some cases counsel will attend and decline to let you answer questions.

Does an ACD count as a fraud finding?

No. An ACD is not a conviction and not a court finding of an IPV. HRA will usually ask for a Disqualification Consent Agreement as part of the deal, and that agreement, not the ACD, is what starts the 12-month disqualification. The DCA terms are negotiable.

Does the disqualification follow me to another state?

Yes. IPV findings are reported to a national database and apply to SNAP in every state for the length of the disqualification.

Contact a New York City SNAP Fraud Attorney

If you have received an HRA Bureau of Fraud Investigation letter, an ADH notice, a Desk Appearance Ticket, or a felony complaint for welfare fraud in Brooklyn, Queens, the Bronx, Manhattan, or Staten Island, we can review the file, recompute the overpayment, and represent you in the civil and criminal proceedings together. Call the Law Offices of Albert Goodwin at 212-233-1233 or email [email protected].