Fighting Welfare Fraud

By Brennan Smith

Fighting Welfare Fraud

June 14, 2012 Updated Jun 14, 2012 at 9:39 PM EDT

Binghamton, NY (WBNG Binghamton) An initiative to fight welfare fraud in New York State starts in the Southern Tier.

Senator Tom Libous is introducing a bill that makes it unlawful for EBT recipients to use their cards to withdraw cash from ATM's located at liquor stores, casinos and strip clubs.

Libous says his office received calls from constituents concerned about EBT cards being used for gambling and buying cigarettes and alcohol.

It places a penalty on store-owners who own the offending ATM's and can rescind the EBT cards of offenders.

"By 2014, Feburary, the Federal government is saying to states all across the nation, you need to clean that system up because a number of states use it, and if you don't, you're going to lose funding that goes into that program, and New York could stand to lose up to 125 million dollars," said Thomas Libous, (R) NYS 52nd Senate.

The legislation is expected to pass through the state senate next week.

Libous is hopeful the Assembly will also support his bill.

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