Legal Definition and Penalties

Welfare Fraud (Legal Definition) and Penalties

MCLA 400.60. (1) Any person who by means of willful false statement or representation or by impersonation or other fraudulent device obtains or attempts to obtain, or aids or abets any person to obtain:

(a) assistance or relief than that to which he is justly entitled; or

(b) a larger amount of assistance or relief than that to which he is justly entitled; or any officer or employee of a county, city or district Michigan Family Independence Agency, who authorizes or recommends relief to persons known to him to be ineligible or to have fraudulently created their eligibility; or any person who knowingly buys or aids or abets in buying or in disposal of the property of a person receiving assistance of relief without the consent of the director or supervisor of the state agency shall if the amount involved shall be of the value of $500.00 or less, be deemed guilty of a misdemeanor and shall if the amount involved shall be of the value of more than $500.00 be deemed guilty of a felony, and upon conviction shall be punished as provided by the laws of this state. The amount as used in this subsection shall be defined as the difference between the lawful amount of assistance or aid and the amount of assistance or aid actually received. If anyone receives assistance or relief through means enumerated in this section, in which prosecution is deemed unnecessary, the state department or county departments may take the necessary steps to recover from the recipient the amount involved, plus interest at 5 % per annum. On conviction of the violation of the provision of this section of any officer or employee of any county, city or district Michigan Family Independence Agency, such officer or employee shall be removed or dismissed from office.

(2) Information furnished by recipients: There is imposed upon every person receiving relief under this act either upon his/her own application or by his/her inclusion, to his knowledge, in the application of another the continuing obligation to supply to the department issuing relief:

(a) the complete circumstances in regard to his/her income from employment or from any other source or the existence of income, if known to him/her, of other persons receiving relief through the same application;

(b) information regarding each and every offer of employment for himself/herself or, if known to him/her, of the other persons receiving relief through the same application;

(c) information concerning changes in his circumstances or those of other persons receiving relief through the same application which would decrease the need for relief; and

(d) the circumstances if whereabouts, known to him/her, of relatives legally responsible for his/her support or for the support of other persons receiving relief through the same application if changes in such circumstances or whereabouts could affect the amount of assistance available from such relatives or affect their legal liability to furnish support. Any person who shall neglect or refuse to submit to the department issuing relief the information required by this section shall, if the amount or relief granted as a result of such neglect or refusal be less than $500.00, be guilty of a misdemeanor, and if the amount of the relief granted as a result of such neglect or refusal be $500.00 or more, shall be guilty of a felony, and upon conviction shall be punished as provided by the laws of this state.

MCLA 400.60 of Public Act 280 (The Social Welfare Act).