Department of Social Services
For Immediate Release: Monday, October 22, 2001
For More Information: Alisa DeMers, 773-3609

Welfare Fraud Is a Crime

(Pierre) – Seventeen welfare recipients have either had criminal charges filed against them or been convicted in state or federal court for illegally obtaining more than $83,000 in welfare benefits in South Dakota during 2001, said James Ellenbecker, Secretary of the SD Department of Social Services (DSS). 

Most of these clients intentionally failed to accurately report their income, resources or household members, making them ineligible for the benefits they received. 

"The Department of Social Services makes every effort to ensure the integrity of its benefit programs through the prevention, detection and pursuit of welfare fraud," Ellenbecker said. "While the vast majority of welfare recipients are honest and deserving clients, a few people intentionally obtain benefits they don’t deserve. These people are committing welfare fraud."

The DSS Office of Recoveries and Fraud Investigations (ORFI) investigates cases of alleged welfare fraud reported by DSS eligibility workers, other agencies or the public. Fraud investigators, located in Sioux Falls and Rapid City, investigate all reported cases of alleged welfare fraud for Food Stamps, Temporary Assistance for Needy Families (TANF), Medical Services and Child Care Services. 

ORFI fraud investigators prepare cases for prosecution, which are then referred to DSS Legal Services or to the US Attorney’s Office if outside state court jurisdiction. Those convicted are disqualified from receiving Food Stamps or TANF and must pay restitution to the state in the amount of the illegally obtained benefits. Ellenbecker said some judgments include jail sentences, as in a recent sentence in Meade County where the judge sentenced a client to serve 30 days in jail during consecutive weekends only. Most other sentences include suspended jail sentences, which are only enforced if the client fails to make restitution or violates other terms of probation. 

In April, a Pennington County client who was also a Canadian citizen was convicted of receiving benefits in South Dakota and Canada at the same time. Her probation was revoked and she was ordered to serve 90 days in the Pennington County Jail, Ellenbecker said. After her release from jail, she was ordered to return to Cananda to complete her sentence for related crimes she committed there. The case was jointly investigated by a Rapid City ORFI fraud investigator and a police sergeant in Saskatoon, Saskatchewan.

"By reducing welfare fraud, we increase public confidence in the welfare system and ensure that funds are available to those who really need assistance," Ellenbecker said. "The public can help reduce welfare fraud by calling the Welfare Fraud Hotline if they know of someone fraudulently receiving welfare benefits."

To report welfare fraud, people can call the 24-hour Welfare Fraud Hotline at 1-800-765-7867. More information on welfare fraud is also available at ORFI’s Web site: www.state.sd.us/social/recoveries. 

Since 1994, ORFI has convicted 107 clients of welfare fraud for receiving more than $628,000 in illegally obtained benefits. Of the 107 cases, 26 were in federal court and 81 in state court. During the past eight years, the average is 14 cases per year and $5,800 in illegally obtained benefits per case.

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