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4.2 Fraud

The Code of Virginia (§ 63.2-522 & § 63.2-502) deems guilty of larceny any person who obtains assistance or benefits by means of a willful false statement or who knowingly fails to notify of a change in circumstances that could affect eligibility for assistance. Welfare fraud is larceny, and recipients deemed guilty of larceny, upon conviction, are subject to penalties as specified in the Code of Virginia. The Commonwealth’s Attorney is responsible for deciding under which section of the Code of Virginia an applicant or recipient will be charged.

A. Intentional Program Violation (IPV)

An intentional program violation consists of any action by which an individual intentionally: 1. Made a false or misleading statement to the LDSS, orally or in writing, to obtain child care services to which the household is not entitled. An IPV may exist for an individual even if the LDSS denies the family's application; 2. Concealed information or withheld facts to obtain services to which the family is not entitled; or 3. Committed any act that constitutes a violation of the: i. Child Care Development Block Grant Act of 2014, as implemented in regulation at 45 CFR Parts 98 and 99. ii. Code of Virginia, Sections 63.2-217, 63.2-319, 63.2-502, 63.2-510, 63.2-522, 63.2-526, 63.2-611, 63.2-616, 63.2-620. An IPV is also any action where an individual knowingly, willfully and with deceitful intent uses the VaECC system to cause payment for child care services to be fraudulently obtained. Whoever obtains or attempts to obtain or aids or abets any individual in obtaining services by means of a willful statement or misrepresentation, by impersonation or other fraudulent device assistance from child care has committed an IPV.

When it is suspected that there has been deliberate misrepresentation of facts in order to receive child care subsidy, the LDSS must determine whether or not fraud was committed. There must be evidence that demonstrates that the household committed an IPV or fraud in order to refer the case to the Fraud Unit.

Suspected instances of child care fraud must be referred to the fraud staff for investigation. LDSS must send copies of fraud investigation final reports to their appropriate Child Care Regional Consultant and VDOE (childcaresubsidy@doe.virginia.gov).

B. Forms Used in IPV Process

The forms listed below must be used in the IPV process. The forms and instructions for their use may be accessed from FUSION, or by manually generating the forms from the left navigation of VaCMS.

1. Notice of Intentional Program Violation 2. Waiver of Administrative Disqualification Hearing