Benefits fraud charges in Michigan are more common than people realize — and they are often based on misunderstandings, clerical errors, or policy changes that recipients were never adequately informed of. If you or someone you care about is facing an investigation or formal charges related to EBT or welfare fraud, the situation is serious, but it is not hopeless. Understanding the law and your rights is the first step toward protecting yourself.

What Constitutes EBT / Welfare Fraud Under Michigan Law

Michigan's benefits fraud law is found primarily in the Michigan Penal Code and the Social Welfare Act. In broad terms, benefits fraud occurs when someone knowingly and intentionally provides false or misleading information to obtain public assistance benefits to which they are not entitled.

Common conduct that falls under this definition includes:

  • Making intentionally false statements on an application or renewal — such as misrepresenting income, assets, or household members
  • Failing to report changes in circumstances — such as a new job, a change in household composition, or inheritance of assets — when reporting is required
  • Unreported income — failing to disclose wages, self-employment income, or other financial resources
  • Benefits trafficking — selling, trading, or exchanging EBT cards or benefits for cash or other goods, which is a federal offense as well as a state crime
  • Receiving duplicate benefits — collecting benefits in Michigan while also receiving benefits in another state

The single most important word in benefits fraud law is intent. Michigan prosecutors must prove that you acted knowingly and intentionally to defraud the system. Honest mistakes, genuine confusion about reporting requirements, and administrative errors are not crimes — though they can lead to overpayments that the state will seek to recover.

"Intent is everything in benefits fraud cases. A mistake is not a crime — but without legal counsel, the line between the two can disappear quickly under government pressure."

Common Situations That Lead to Fraud Charges (But Aren't Always Fraud)

Many people facing EBT or welfare fraud allegations never intended to do anything wrong. The situations that most commonly lead to charges — or at least investigations — include:

  • Administrative errors by caseworkers — benefits that were calculated or entered incorrectly through no fault of the recipient
  • Confusing or changing reporting requirements — Michigan's DHHS benefit system has complex rules about what must be reported, when, and how. Recipients who miss a reporting deadline or misunderstand the requirement may find themselves accused of fraud
  • Household composition changes — a family member moving in or out, a change in relationship status, or a temporary arrangement that was not reported promptly
  • System errors and glitches — cases where the state's own computer systems issued overpayments or failed to update information correctly
  • Overpayments the recipient didn't know about — in some cases, people continue receiving benefits at a level they received before a change, without realizing the amount should have decreased

In all of these situations, the state may still seek repayment of overpaid benefits through an administrative process. But pursuing criminal charges on top of a repayment demand is a serious escalation that requires a vigorous defense.

Potential Penalties for Benefits Fraud in Michigan

The penalties for a benefits fraud conviction in Michigan depend significantly on the total value of the benefits alleged to have been fraudulently obtained:

  • Under $200 — misdemeanor, up to 93 days in jail and fines
  • $200 to $1,000 — misdemeanor, up to one year in jail and fines up to $2,000 or three times the amount of fraud, whichever is greater
  • $1,000 to $20,000 — felony, up to five years in prison and significant fines
  • Over $20,000 — felony, up to ten years in prison and substantial fines

Beyond incarceration and fines, a conviction carries additional consequences that can be life-altering:

  • Mandatory repayment of all benefits fraudulently received, with interest and penalties
  • Permanent or long-term disqualification from receiving public assistance benefits in Michigan
  • A criminal record that affects employment, housing, and professional licensing opportunities
  • Immigration consequences — for non-citizens, a fraud conviction can result in deportation, inadmissibility, or denial of naturalization. This dimension of the case demands immediate attention from an attorney experienced in both criminal and immigration law

Your Rights If You're Under Investigation

If you receive a notice from the Michigan Department of Health and Human Services (DHHS), the Office of Inspector General, or law enforcement indicating you are under investigation for benefits fraud, your rights are the same as in any criminal investigation — and you must assert them.

You have the right to remain silent. Do not speak to investigators, caseworkers, OIG agents, or law enforcement about the allegations without first consulting an attorney. Anything you say can and will be used against you. Investigators are often skilled at making interviews feel like friendly conversations — they are not.

You have the right to an attorney. If you are questioned, clearly and calmly state that you wish to speak with an attorney before answering any questions. Then stop talking.

It is also critical to understand that benefits fraud cases can proceed on two separate tracks simultaneously: an administrative track (where the state seeks to recover overpayments, terminate benefits, and impose a disqualification period) and a criminal track (where the prosecutor's office pursues charges and potential incarceration). Statements made in the administrative process can be used against you in the criminal case. You need an attorney who understands both tracks from the moment the investigation begins.

Defense Strategies Available to You

A benefits fraud charge is not a conviction. Depending on the specific facts of your case, there are several defense strategies that an experienced criminal defense attorney can pursue:

  • Lack of intent — demonstrating that any overpayment resulted from honest mistake, confusion, or administrative error rather than intentional fraud
  • Mistake of fact — showing that you acted based on a genuine misunderstanding of the rules, which negates the required criminal intent
  • Challenging the evidence — scrutinizing the state's records, calculations, and documentation for errors that undermine the fraud allegation
  • Administrative resolution — in some cases, negotiating a repayment agreement through the administrative process can resolve the matter without criminal charges being filed
  • First-time offender programs — Michigan offers diversion programs and alternatives to prosecution for eligible first-time offenders, which can result in charges being dismissed upon successful completion
  • Prosecutorial discretion arguments — particularly where the amount is small or the circumstances are sympathetic, an attorney can advocate directly with the prosecutor's office before charges are formally filed

Why Early Legal Counsel Matters in EBT Fraud Cases

The earlier you involve an attorney, the more options are available to you. Before charges are formally filed, an attorney can engage directly with investigators and prosecutors in ways that are simply not possible after an indictment. This pre-charge intervention can mean the difference between a criminal record and a case that never moves forward.

An attorney can also help preserve evidence that supports your defense — records showing you reported changes, documentation of administrative errors, correspondence with your caseworker, and evidence of good faith compliance with program rules.

For non-citizens, the urgency is even greater. A fraud charge — even one that results in a plea to a lesser offense — can trigger immigration consequences that include removal from the United States. An attorney must analyze the immigration dimensions of the case before any plea or resolution is considered.

If you are facing EBT or welfare fraud allegations in Michigan, you need a knowledgeable EBT fraud defense attorney in Michigan who understands both the criminal justice system and the DHHS administrative process. At Mumen Barlaskar Law Firm PLLC, we represent clients facing benefits fraud investigations and charges throughout Michigan, including Hamtramck, Detroit, and surrounding communities. Contact us today for a confidential, no-cost consultation — the sooner you call, the more we can do for you.