Protecting Your Business from License Revocation
Having your business license revoked is worse than never having had one in the first place. The problem now is that you have a large payroll, rents, and have become used to earning a certain level of desired profits.
Our clients have had liquor licenses, lottery licenses, and even food stamps SNAP permits revoked at some point in their lifetime. We understand the difficulty of closing down a business while maintaining monthly overheads when such licenses are revoked.
USDA Dedicates Staff to Investigating and Prosecuting Fraud
How SNAP Investigations Work
FNS has a dedicated team of over 100 analysts and investigators across the country dedicated to SNAP retailer compliance.
They:
- Analyze retailer data
- Conduct undercover investigations
- Process cases, including fines and administrative disqualifications, against violating retailers
FNS also works with state law enforcement authorities to provide them with SNAP benefits that are used in sting operations, supporting anti-trafficking actions at the local level.
The Federal Government Takes Action Against Those Who Misuse the Program
In FY 2012:
- Over 100 analysts and investigators reviewed over 15,000 stores
- Nearly 4,500 undercover investigations were conducted
- Close to 1,400 stores were permanently disqualified for trafficking
- Nearly 700 stores were sanctioned for other violations such as the sale of ineligible items
FNS also works with state law enforcement authorities to provide them with SNAP benefits that are used in sting operations, supporting anti-trafficking actions at the local level.
USDA’s Office of the Inspector General also conducts extensive criminal investigations – many resulting from FNS administrative oversight findings and referrals – to prosecute traffickers.
In FY 2012, OIG SNAP investigations resulted in:
- 342 convictions, including a number of multi-year prison terms for the most serious offenses
- Approximately $57.7 million in monetary results
In FY 2012, OIG devoted more than 50 percent of its investigative resources to prevent SNAP fraud, waste, and abuse.
Frequently Asked Questions
What happens if my SNAP license is revoked?
If your SNAP license is revoked, your business may be forced to halt operations, especially if you rely on food stamp transactions for revenue. This can result in financial strain due to ongoing expenses like rent, payroll, and inventory commitments.
Why does the USDA investigate SNAP retailers?
The USDA, through the Food and Nutrition Service (FNS), investigates SNAP retailers to prevent fraud and ensure compliance. They use data analysis, undercover operations, and collaboration with law enforcement to detect violations such as trafficking or the sale of ineligible items.
How serious are the penalties for SNAP fraud?
Penalties can be severe. Violations may lead to permanent disqualification from SNAP, substantial fines, or even criminal convictions. In one fiscal year, FNS disqualified over 1,000 stores and OIG investigations led to hundreds of convictions.
Can I appeal a SNAP disqualification or sanction?
Yes, retailers have the right to appeal administrative actions taken against them, including disqualification and fines. The appeals process typically involves a formal request and possibly legal representation to challenge the decision.
How can I protect my business from license revocation?
To protect your business, maintain strict compliance with SNAP rules, train your staff thoroughly, and conduct internal audits regularly. Consulting with experienced legal professionals can also help you navigate investigations or potential violations.