7 U.S.C. § 2024 – Food Stamp Fraud and SNAP Trafficking Charges
The Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program, provides federal assistance to low-income individuals and families so they can purchase necessary food.
Because SNAP is a federally funded program, fraud involving benefits can result in serious federal criminal charges under 7 U.S.C. § 2024.
Food stamp fraud cases are prosecuted aggressively when the government believes someone knowingly misused benefits, trafficked electronic benefit transfer (EBT) cards, submitted false applications, or improperly redeemed SNAP funds.
If you are under investigation for white-collar crime, such as SNAP fraud, early legal intervention is critical.
Your best hope for a favorable outcome is with an experienced criminal defense attorney at the Hedding Law Firm in Los Angeles. To schedule a consultation, call (866) 986-2092 or use the contact form here.
What Is Food Stamp Fraud Under 7 U.S.C. § 2024?
7 U.S.C. § 2024 makes it a federal crime to knowingly:
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Use SNAP benefits in a way not authorized by law
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Transfer or sell SNAP benefits for cash (trafficking)
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Acquire or possess benefits unlawfully
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Alter or misuse EBT cards
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Present SNAP benefits for payment, knowing they were obtained illegally
The key legal term is knowingly. The government must prove that the defendant was aware that their conduct violated SNAP rules.
Unintentional mistakes or clerical errors are not criminal fraud.
What Is SNAP Trafficking?
SNAP trafficking refers to the illegal exchange of benefits for cash or non-eligible goods.
Examples include:
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Selling EBT benefits for cash at a discount
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Retailers exchanging cash for SNAP benefits
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Accepting SNAP benefits for prohibited items
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Coordinated schemes between recipients and store owners
Both recipients and retailers can face criminal liability.
What Must Prosecutors Prove?
To secure a conviction under 7 U.S.C. § 2024, federal prosecutors must prove beyond a reasonable doubt:
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The defendant knowingly used, transferred, acquired, altered, or possessed SNAP benefits.
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The conduct violated federal SNAP statutes or regulations.
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The value of the benefits involved meets the statutory threshold for the charged offense.
Intent is central. The government must show fraudulent intent, not confusion or misunderstanding.
Felony vs. Misdemeanor Thresholds
The severity of SNAP fraud charges depends on the total value of the benefits involved.
Unlawful Acquisition, Use, or Transfer
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Under $100: misdemeanor, up to 1 year in prison, and a fine up to $1,000
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$100 to $5,000: felony, up to 5 years in prison, and a fine of up to $10,000
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Over $5,000: felony, up to 20 years in prison, and fines up to $250,000
Unlawful Redemption
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Under $100: up to 1 year in prison
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Over $1,000: up to 5 years in prison and up to $20,000 in fines
Courts may also order:
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Restitution
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Forfeiture of property
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Disqualification from SNAP participation
Common Types of SNAP Fraud Investigations
Federal investigations often involve:
False Applications
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Underreporting income
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Failing to disclose assets
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Misrepresenting household composition
Retailer Fraud
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Inflated redemption amounts
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Falsified transaction records
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Reapplying after program disqualification
Organized Trafficking
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Coordinated EBT exchange schemes
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Large-scale retailer fraud operations
SNAP fraud cases may be investigated by federal and state agencies working together.
Is SNAP Fraud Always a Criminal Case?
No. Many SNAP overpayment cases are handled administratively.
Criminal prosecution typically occurs when:
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The alleged fraud involves large dollar amounts
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There is evidence of intentional trafficking
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The conduct appears organized or repeated
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A retailer is involved
Administrative penalties may include repayment demands and program disqualification.
Defenses to Food Stamp Fraud Charges
A strong defense focuses on intent and valuation.
Lack of Knowledge
If the defendant did not know their actions violated program rules, criminal liability may not apply.
Mistake or Misunderstanding
SNAP regulations are complex. Clerical errors or reporting confusion do not automatically equal fraud.
Insufficient Evidence
The government must prove the dollar value and intent beyond a reasonable doubt.
Overstated Loss Amount
Loss calculations significantly impact sentencing. Challenging valuation can reduce exposure.
Diversion or Restitution-Based Resolution
In some cases, defense counsel can negotiate alternatives to incarceration focused on repayment and compliance.
How Long Does the Government Have to File Charges?
The statute of limitations for most federal fraud offenses is generally five years, though it may vary depending on the specific charge and circumstances.
Frequently Asked Questions
Can you go to jail for food stamp fraud?
Yes. Depending on the dollar amount involved, penalties can range from misdemeanor probation to felony prison sentences.
Is selling SNAP benefits illegal?
Yes. Selling SNAP benefits for cash is considered trafficking and is a federal crime.
What if I made a mistake on my SNAP application?
Unintentional mistakes are not automatically criminal. The government must prove you acted knowingly and intentionally.
Can a store owner be charged?
Yes. Retailers who improperly redeem SNAP benefits or falsify transactions can face felony prosecution.
Will I have to repay the money?
Courts often order restitution if there is a conviction.
Why Early Federal Defense Matters
By the time SNAP fraud charges are filed, investigators may already have:
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Transaction records
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Surveillance evidence
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Financial documentation
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Statements from witnesses
Early representation can:
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Prevent formal charges
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Clarify misunderstandings
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Challenge inflated loss calculations
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Negotiate repayment alternatives
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Reduce potential prison exposure
Speak With a Federal Criminal Defense Attorney
Food stamp fraud investigations can escalate quickly from administrative review to federal prosecution. If you are under investigation or have been charged under 7 U.S.C. § 2024, experienced federal defense counsel can protect your rights and explore every available defense.
The Hedding Law Firm represents clients in Los Angeles and throughout California facing federal fraud investigations, including SNAP and other government benefit-related offenses.
Schedule your consultation today. Our law firm is based in Los Angeles, CA
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