Attorney for Public Benefits Fraud Investigation

Receiving a letter from the Human Resources Administration (HRA), the Bureau of Fraud Investigation (BFI), or the Office of the Special Narcotics Prosecutor regarding alleged public benefits fraud can be one of the most stressful experiences a New Yorker can face. What may begin as a routine inquiry can rapidly escalate into a criminal prosecution carrying felony charges, restitution demands, disqualification from benefits, and even imprisonment. If you or a loved one is under investigation for suspected fraud involving SNAP (food stamps), Medicaid, cash assistance, public housing, Section 8, unemployment insurance, or childcare subsidies, you need experienced legal counsel immediately.

Our New York City law firm represents clients across all five boroughs who are facing investigations and prosecutions for alleged public benefits fraud. We understand the administrative procedures, criminal statutes, and negotiation strategies necessary to protect your rights, your livelihood, and your future.

Understanding Public Benefits Fraud Investigations in New York City

Public benefits fraud occurs when a person allegedly obtains, attempts to obtain, or helps another person obtain government benefits through false statements, misrepresentation, concealment of facts, or other deceptive means. In New York City, multiple agencies investigate these allegations, including:

• HRA Bureau of Fraud Investigation (BFI) — Investigates fraud involving SNAP, cash assistance (Safety Net Assistance and Family Assistance), Medicaid, and emergency assistance programs.
• NYC Department of Investigation (DOI) — Conducts broader investigations into welfare fraud, public housing fraud, and Section 8 fraud.
• New York State Office of the Medicaid Inspector General (OMIG) — Investigates Medicaid recipient and provider fraud.
• New York State Department of Labor — Investigates unemployment insurance fraud.
• NYC Housing Authority (NYCHA) Office of Inspector General — Investigates fraud involving public housing and Section 8 vouchers.
• District Attorneys' Offices — Prosecute criminal cases in Manhattan, Brooklyn, Queens, the Bronx, and Staten Island.

Investigations frequently begin without the recipient's knowledge. Investigators may interview neighbors, employers, landlords, and family members. They may also pull bank records, tax returns, employment records, and travel histories. By the time a client receives an appointment letter or subpoena, an investigator may have already developed a substantial case.

Common Allegations We Defend Against

Public benefits fraud cases in New York City typically involve allegations such as:

• Unreported income or assets — Failing to report wages, self-employment income, bank accounts, or property.
• Unreported household members — Allegedly concealing that a spouse, partner, or other income-earning adult lives in the household.
• Residency fraud — Allegedly claiming a New York City address while living elsewhere, or maintaining multiple residences.
• Identity misrepresentation — Using false Social Security numbers, names, or immigration documents.
• Trafficking SNAP benefits — Allegedly selling EBT benefits for cash or non-eligible goods.
• Medicaid fraud — Concealing assets, transferring property to qualify, or misrepresenting medical needs.
• NYCHA and Section 8 fraud — Subletting, unreported occupants, or unreported income that affects rent calculations.
• Unemployment insurance fraud — Collecting benefits while working or misrepresenting the reason for separation from employment.

Criminal Charges and Penalties Under New York Law

Public benefits fraud in New York City can be prosecuted under several provisions of the New York Penal Law. The severity of the charge depends primarily on the total dollar amount of the alleged fraud.

Welfare Fraud (Penal Law Article 158)

• Welfare Fraud in the Fifth Degree — A Class A misdemeanor; up to one year in jail.
• Welfare Fraud in the Fourth Degree — Alleged fraud exceeding $1,000; a Class E felony.
• Welfare Fraud in the Third Degree — Alleged fraud exceeding $3,000; a Class D felony.
• Welfare Fraud in the Second Degree — Alleged fraud exceeding $50,000; a Class C felony.
• Welfare Fraud in the First Degree — Alleged fraud exceeding $1,000,000; a Class B felony punishable by up to 25 years in prison.

Related Charges

Prosecutors often add additional charges, including:

• Grand Larceny (Penal Law Article 155)
• Offering a False Instrument for Filing (Penal Law § 175.30 and § 175.35)
• Falsifying Business Records
• Identity Theft
• Scheme to Defraud
• Criminal Possession of a Forged Instrument

Beyond criminal penalties, a conviction can lead to permanent disqualification from public benefits programs, deportation or immigration consequences for non-citizens, loss of professional licenses, ineligibility for public housing, and substantial restitution orders. Even individuals who are not criminally prosecuted may face administrative disqualification hearings and demands for repayment.

The Investigation Process: What to Expect

Initial Contact

Most clients first learn of an investigation when they receive a letter requesting that they appear at an HRA office or BFI location for an interview. These letters are sometimes referred to as "appointment letters" or "investigation interview" notices. While the tone may seem routine, these interviews are not casual conversations — they are evidence-gathering sessions where every statement you make can be used against you.

Document Requests and Subpoenas

Investigators may request bank statements, tax returns, lease agreements, utility bills, employment records, and identification documents. They may also issue subpoenas to third parties such as banks, employers, and landlords.

Administrative Disqualification Hearings

Even without criminal charges, the government may pursue an Administrative Disqualification Hearing (ADH) to disqualify you from benefits and order restitution. Penalties include disqualification for 12 months for a first offense, 24 months for a second offense, and permanently for a third offense — or for any conviction involving trafficking.

Criminal Referral

If investigators believe they have sufficient evidence, the case is referred to the appropriate District Attorney's Office for prosecution. At that point, you may be summoned to appear in criminal court or arrested.

Why You Should Never Attend an Investigation Interview Without an Attorney

One of the most common — and most damaging — mistakes individuals make is attending an HRA or BFI interview alone, believing they can simply explain the situation. Investigators are trained to elicit admissions. Statements made during these interviews are reduced to writing, signed by the recipient, and used as the cornerstone of subsequent criminal prosecutions and administrative actions.

You have the right to be represented by counsel at every stage of the investigation. An experienced attorney can:

• Communicate with investigators on your behalf and limit your exposure.
• Review the agency's evidence before any statement is made.
• Negotiate civil restitution to avoid criminal prosecution where possible.
• Identify defenses such as lack of intent, agency error, clerical mistakes, or improperly calculated overpayments.
• Protect your immigration status, professional license, and housing.

Our Defense Strategy

Every case is unique, and our defense strategy is tailored to the specific facts, evidence, and goals of each client. Common defense approaches include:

Challenging Intent

Most fraud statutes require proof that the defendant knowingly and intentionally made false statements or concealed information. Confusing application forms, language barriers, changes in household circumstances, and miscommunication with caseworkers can all undermine the prosecution's ability to prove criminal intent.

Challenging the Overpayment Calculation

Agencies frequently overstate the alleged loss. We meticulously review benefit calculations, eligibility periods, and income figures to ensure that any restitution demand is accurate and lawful. Reducing the alleged loss below statutory felony thresholds can transform a felony case into a misdemeanor — or eliminate criminal exposure entirely.

Negotiating Civil Restitution

In many cases, we can negotiate a civil resolution in which our client agrees to repay disputed benefits in exchange for the agency declining to refer the matter for criminal prosecution. Early intervention by counsel is often the key to securing this outcome.

Pretrial Motions and Suppression

If charges are filed, we file motions to suppress improperly obtained statements, challenge subpoenas, and contest the admissibility of evidence. We also pursue dismissals based on legal insufficiency where appropriate.

Diversion and Alternatives to Incarceration

For clients facing criminal charges, we pursue diversion programs, conditional discharges, and pleas to non-criminal violations where the facts allow. We work to preserve our clients' clean records, employment, immigration status, and housing eligibility.

Immigration Consequences for Non-Citizens

Non-citizens facing public benefits fraud allegations require particular care. Convictions involving fraud or false statements can constitute crimes involving moral turpitude or aggravated felonies under federal immigration law, leading to deportation, denial of naturalization, and inadmissibility. Even an administrative disqualification or a public charge finding can have far-reaching consequences. Our attorneys consider every immigration implication before recommending any course of action.

What to Do If You Are Under Investigation

1. Do not speak with investigators without an attorney. Politely decline to answer questions and state that you would like to consult with counsel.
2. Do not produce documents without legal review. Documents can be just as incriminating as statements.
3. Preserve your records. Gather lease agreements, pay stubs, tax returns, bank statements, and any correspondence with the agency.
4. Do not destroy or alter any documents. Destruction of evidence is itself a crime.
5. Contact an experienced public benefits fraud attorney immediately. The earlier we are involved, the more options we have to protect you.

Why Choose Our New York City Public Benefits Fraud Defense Attorneys

Our firm brings decades of combined experience defending clients in administrative hearings, grand jury proceedings, and criminal trials throughout New York City. We have represented clients before HRA, BFI, OMIG, NYCHA, the New York State Department of Labor, and the District Attorneys' Offices in all five boroughs. We understand the procedural intricacies, the prosecutorial priorities, and the relief available under New York law.

We take a holistic approach, considering not only the criminal exposure but also the collateral consequences — immigration, housing, employment, professional licensing, and family law implications. Our goal is always to resolve matters discreetly and favorably, whenever possible, before they ever reach a courtroom.

Contact a New York City Public Benefits Fraud Investigation Attorney Today

If you have received a notice from HRA, BFI, OMIG, NYCHA, or any other investigative agency, or if you have been contacted by a District Attorney's Office regarding alleged public benefits fraud, do not wait. The decisions you make in the first hours and days of an investigation can determine the outcome of your case. Contact our New York City law firm today to schedule a confidential consultation with an experienced public benefits fraud defense attorney. We are ready to protect your rights, your freedom, and your future.

You can contact us by phone at 212-233-1233 or by email at [email protected].