Fraud in the Foodshare Program – Wisconsin

Fraud taints state’s FoodShare program, By Raquel Rutledge and Jason Stein, April 23, 2011, Milwaukee Journal Sentinel: “Thousands of people who receive publicly funded food assistance report losing their benefits card routinely – a sign investigators say shows many are cheating the state’s $1 billion program. Some sell their Quest cards for cash. Others trade them for drugs. And that’s not the only way the state’s FoodShare program is being abused, an investigation by the Journal Sentinel has found. Instead of using the cards as intended – as a tool to keep the poor from going hungry – participants who aren’t hungry can use the cards to profit. Unscrupulous recipients sometimes buy steaks, seafood and other expensive items with their subsidized benefits and then sell the food to friends at a discount to get cash. Other times they approach strangers in grocery stores, offering to use their Quest cards in exchange for cash – completing the deal in the parking lot and pocketing $50 for every $100 they spend in Quest funds for the strangers’ groceries. In other cases, recipients fail to report all their income or that a working spouse lives in the home. Some collect money from multiple states. Lax rules and oversight make the program susceptible to fraud…”