In Colorado, you can be charged with welfare fraud for
- filing a false application for welfare benefits,
- making a false statement such as underreporting income,
- failing to disclose all the people residing in the home, or
- failing to report all of the assets and property owned.
Welfare fraud is subject to criminal theft charges. Penalties depend on the value of the fraud involved.
The following graphic shows various ways welfare fraud occurs in Colorado:
In this article, our Denver criminal defense lawyers will address the following key issues regarding welfare fraud in Colorado law:
1. Elements
Welfare fraud involves making a false statement, filing a false claim for welfare, or withholding information in order to receive welfare benefits. This includes:
- Underreporting income
- Failing to report all the people in their household
- Obtaining welfare benefits from multiple states
- Failing to report other property or assets
- Taking another person’s welfare benefits without authorization
There are many types of public assistance available to Colorado residents. This includes food assistance, cash programs, and medical benefits. Cash welfare programs include:
- Colorado Works
- Aid to the Needy Disabled Colorado Supplement to Social Security (AND-CS)
- Aid to the Needy Disabled and Aid to the Blind (AND-SO)
- Old Age Pension (OAP)
- Home Care Allowance (HCA)
- Personal Needs Allowance (PNA)
Most welfare fraud in Colorado is prosecuted under the state’s laws against larceny or theft. You commit theft when you knowingly obtain anything of value without authorization or through deception.1
2. Penalties
Under C.R.S. 18-4-401, the penalties for welfare fraud depend on the extent of the fraud and value of welfare benefits unlawfully received. Welfare fraud can be a misdemeanor or felony offense.
| Value of Welfare Fraud | Class of Criminal Offense | Penalties |
| Less than $300 | Petty Offense | Up to 10 days in jail and/or a fine of up to $300 |
| $300 or more but less than $1,000 | Class 2 Misdemeanor | Up to 120 days in jail and/or a fine of up to $750 |
| $1,000 or more but less than $2,000 | Class 1 Misdemeanor | Up to 364 days in jail and/or a fine of up to $1,000 |
| $2,000 or more but less than $5,000 | Class 6 Felony | 12 to 18 months in prison and/or a fine of up to $100,000 |
| $5,000 or more but less than $20,000 | Class 5 Felony | 1 to 3 years in prison and/or a fine of up to $100,000 |
| $20,000 or more but less than $100,000 | Class 4 Felony | 2 to 6 years in prison and/or a fine of up to $500,000 |
| $100,000 or more but less than $1 million | Class 3 Felony | 4 to 12 years in prison and/or a fine of up to $750,000 |
| $1 million or more | Class 2 Felony | 8 to 24 years in prison and/or a fine of up to $1,000,000 |
3. Defenses
There are many defenses available if you are charged with welfare fraud. This includes showing that:
- You did not intend to commit welfare fraud
- You believed you were submitting an accurate and legitimate welfare claims
- Incorrect information was entered by mistake or was a typo
- You were a victim of identity theft
- There were no fraudulent documents filed
4. Related Crimes
Welfare fraud may involve other related criminal offenses. This includes forgery, identity theft charges when another person’s information was used to obtain welfare benefits, and may also involve a computer crime if a computer was used to file for welfare benefits.
Identity Theft C.R.S. 18-5-902
In Colorado, it is a criminal offense to use another person’s personal or financial identifying information to obtain anything of value. This includes using another person’s identity to file a claim for welfare benefits. Identity theft can be a felony or a misdemeanor.
Computer Crime C.R.S. 18-5.5-102
In Colorado, it is a computer crime to access any computer, computer network, or computer system for the purpose of executing any scheme to defraud. This includes reporting false information online to receive welfare benefits. The criminal penalties for computer crimes depend on the value of the theft or loss.
Forgery C.R.S. 18-5-102
Forgery under Colorado law involves altering or creating false documents with the intent to defraud. Prescription fraud may involve forging documents in support of an application for welfare benefits. Forgery in the first degree is a class 5 felony in Colorado, with penalties including 1 to 3 years in prison and a fine of up to $100,000.
Additional Reading
For more in-depth information, refer to these scholarly articles:
- Welfare Fraud and the Fourth Amendment – Pepperdine Law Review
- Broke people, broken rules: Explaining welfare fraud investigators’ attributions – Punishment and Society
- Detecting and preventing welfare fraud – Trends and Issues in Crime and Criminal Justice
- Welfare Law, Welfare Fraud, and the Moral Regulation of the ‘Never Deserving’ Poor – Social and Legal Studies
- Welfare fraud and welfare stigma – Journal of Economic Psychology
Legal References
- C.R.S. 8-4-401. Prior to March 1, 2022, welfare fraud of less than $300 was a class 3 misdemeanor punishable by up to 6 months in jail and a fine of up to $750; welfare fraud of $300 or more but less than $750 was a class 2 misdemeanor carrying 3 to 12 months in jail and a fine of up to $1,000; welfare fraud of $750 or more but less than $2,000 was a class 1 misdemeanor carrying 6 to 18 months in jail and a fine of up to $5,000. SB21-271.