Food Stamp Fraud Targeted, but Not Bank Fraud

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Thursday, December 08, 2011

Food Stamp Fraud Targeted, but Not Bank Fraud

(graphic: Armchair Patriots)

Going after criminal cases targeting fraud has come down to what’s easier to prosecute for the Obama administration.

While Americans of all stripes have clamored for justice in the wake of the financial crisis, the U.S. Department of Justice has chosen to not pursue jail time for banking executives whose decisions wreaked havoc on the financial industry and the economy. The reason: Building cases against bankers is just too hard to do and carries too much risk of failure in the courtroom.

Instead, the Justice Department has allowed the Securities and Exchange Commission to pursue civil cases directed at banks that can yield large financial penalties, but no criminal prosecutions.

With bank fraud out of reach, federal prosecutors have reached for lower-hanging fruit—namely, food stamp cheaters.

The lousy economy has resulted in a surge of Americans on food stamps and a corresponding increase in those fraudulently using the assistance, according to administration officials. More than 46 million people are receiving about $75.3 billion in help from the Supplemental Nutrition Assistance Program (aka food stamps). Of this amount, more than $750 million may be spent fraudulently, says Obama’s people.

Seven hundred and fifty million dollars is nothing to sneeze at. But compared to the total expenditure for food stamps, the amount of potential fraud going on amounts to only 1%.

–Noel Brinkerhoff

Why No Financial Crisis Prosecutions? Ex-Justice Official Says It’s Just too Hard (by Marian Wang, ProPublica)

An Ex-FBI Official Explains Lack of Convictions Tied to Financial Crisis (by Joe Palazzolo, Wall Street Journal)

Obama Administration Targeting Food Stamp Fraud as Program Reaches Record Highs (by Ed O’Keefe, Washington Post)

Comments

Bill 13 years ago

stupid people, bailouts are for bankers.

Dave Mowers 13 years ago

one has to wonder why, in a nation that prints its' own currency, there is any poverty at all? why are americans not able to get credit and capital directly from the american central bank- the federal reserve? "the u.s. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many u.s. dollars as it wishes at no cost." -ben bernanke, chairman federal reserve 50% of all workers made less than $26,000 in 2010 derek thompson oct 20 2011 today we get our first look at american wages in 2010 based on payroll taxes reported to the social security administration. david cay johnston picks out the most important takeaways, including: “half of all workers made less than $26,364, the median wage in 2010. that means the typical wage is at its lowest level since 1999, after adjusting for inflation.” so it would, according to ben bernanke, cost the american tax payer nothing to issue digital currency credits into you bank account for the purpose of starting or expanding a business. small businesses account for 45% of all jobs in the nation. we do not live in a democracy and the u.s. does not practice capitalism. we live in a monetary aristocracy and our country will fail because of this.

npd1969 13 years ago

with all the people who actually qualified for food stamps, i wonder how many people who applied and got rejected for one reason or another? on yesterday's houston chronicle a woman was so distraught by being told that she didn't qualify, she shot her two children and then shot herself and died. this horrible event happened in laredo, texas. i also wonder how many times this has already happened, or how many times will this happen in the coming weeks and months?

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Food Stamp Fraud Targeted, but Not Bank Fraud

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