COURT ACTION

A. Local offices are encouraged to refer for prosecution under state fraud statutes those individuals suspected of committing fraud, particularly if large amounts of benefits are suspected of being fraudulently obtained or the individual is suspected of committing more than one (1) fraudulent act. The local office shall confer with its legal representative to determine the types of cases that will be accepted for possible prosecution. B. An individual must be found guilty of fraud through criminal court in order for the local office to impose a disqualification penalty. However, when a determination of guilt is not obtained because of a case involving court-deferred adjudication or plea-bargaining, a disqualification penalty may be imposed if a signed consent agreement is obtained from the individual. C. A summary or copy of a referral for prosecution shall, together with the date of the referral, be forwarded to the state department. D. Local offices shall disqualify an individual found guilty of fraud or the length of time specified by the court. If the court fails to impose a disqualification period, the local office shall impose an appropriate disqualification in accordance with Section 4.803.3, unless imposing a disqualification would be contrary to the court order. E. If disqualification is ordered but a date for initiating the disqualification period is not specified, the local office shall initiate the disqualification period for individuals within forty-five (45) calendar days from the date the disqualification was ordered. Any other court-imposed disqualification shall begin within forty-five (45) calendar days from the date the court found an individual guilty of civil or criminal misrepresentation or fraud. F. Once a disqualification period has been imposed against a currently participating household member, the period of disqualification shall continue uninterrupted until completed regardless of the eligibility of the disqualified member's household. G. If the court finds that the individual committed fraud, the county shall mail to the household, prior to the disqualification whenever possible, a notice informing the household of the disqualification and the date the disqualification will take effect, and shall advise the remaining household members of the allotment they will receive during the period of disqualification or that they must reapply because the certification period has expired.