Fraud Penalties

If a consumer is convicted of fraud or fails to cooperate with a fraud investigation, the user should create a Non-Compliance record on the Non-Compliance List page before running EDBC.  Please see Non-Financial Data Collection Non-Compliance for more information on completing this page.  

Fraud Types include:

See the Non-Compliance Table for guidance on when to use the above Types and associated Reasons.

When applying the Fraud non-compliance types, select all adults participating in the program(s) at the time of the fraud conviction.  

When applying a non-compliance for failing to cooperate with a fraud investigation (Quality Control - State QC Non-Coop), select all adults participating and only the program that is being investigated.

Enter the Begin Date as the first day of the application month or the first day of the first month the non-compliance is applied, taking Timely and Adequate Notice into consideration.  An End Date may populate and nothing should be entered in the Override End Date with the exception of applying a non-compliance for failing to cooperate with a fraud investigation.

An Override End Date should be entered when the consumer cooperates with the fraud investigation.  See Editing or End Dating a Non-Compliance Record for guidance on detailed steps.

NOTE:  If a Non-Compliance record was created to deny an application for Failure to Cooperate with a Fraud investigation and the consumer cooperates within the application period, the Non-Compliance record should be Removed and a journal entry added.  This guidance also applies when a consumer is Discontinued for Failure to Cooperate with a Fraud investigation and the consumer cooperates within 30 days of the discontinuance date.

For additional guidance on fraud processes see EES Overpayments Process or Child Care Provider Overpayment Process.