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JAMES BOVARD: The Food-Stamp Crime Wave – WSJ.com

MB Snow | June 22, 2011 at 5:51 PM | Tags: Commentary, Economy, Entitlements, Food Stamps, Politics, Taxes | Categories: Commentary, Economy, Politics, Taxes | URL: http://wp.me/pmX2V-dcp

The Food-Stamp Crime Wave

The number of food-stamp recipients has soared to 44 million from 26 million in 2007. Not surprisingly, fraud and abuse are rampant.

OPINION JUNE 23, 2011

By JAMES BOVARD

Millionaires are now legally entitled to collect food stamps as long as they have little or no monthly income. Thirty-five states have abolished asset tests for most food-stamp recipients. These and similar “paperwork reduction” reforms advocated by the United States Department of Agriculture (USDA) are turning the food-stamp program into a magnet for abuses and absurdities.

The Obama administration is far more enthusiastic about boosting food-stamp enrollment than about preventing fraud. Thanks in part to vigorous federally funded campaigns by nonprofit groups, the government’s AmericaCorps service program, and other organizations urging people to accept government handouts, the number of food-stamp recipients has soared to 44 million from 26 million in 2007, and costs have more than doubled to $77 billion from $33 billion.

The USDA’s Food and Nutrition Service now has only 40 inspectors to oversee almost 200,000 merchants that accept food stamps nationwide. The Government Accountability Office reported last summer that retailers who traffic illegally in food stamps by redeeming stamps for cash or alcohol or other prohibited items “are less likely to face criminal penalties or prosecution” than in earlier years.

Lax attitudes toward fraud are spurring swindles across the nation:

• Earlier this month, the Milwaukee Journal Sentinel revealed that Wisconsin food-stamp recipients routinely sell their benefit cards on Facebook. The investigation also found that “nearly 2,000 recipients claimed they lost their card six or more times in 2010 and requested replacements.” USDA rules require that lost cards be speedily replaced. The Wisconsin Policy Research Institute concluded: “Prosecutors have simply stopped prosecuting the vast majority of [food-stamp] fraud cases in virtually all counties, including the one with the most recipients, Milwaukee.”

• Troy Hutson, the chief of Washington state’s food-stamp program, resigned in April after a Seattle television station revealed that some food-stamp recipients were selling their cards on Craigslist or brazenly cashing them out on street corners (for 50 cents on the dollar) and using the proceeds for illegal drugs and prostitution. Washington state Sen. Mike Carrell complained: “Dozens of workers at DSHS [the Department of Social and Health Services] have reported numerous unpunished cases of fraud to me. They have told me that DSHS management has allowed these things to happen, and in some cases actively restricted fraud investigations.”

via James Bovard: The Food-Stamp Crime Wave – WSJ.com.

 

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Posted on June 23, 2011, in Politics and tagged . Bookmark the permalink. 1 Comment.

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