Millionaire able to qualify for food stamps warns of ‘fraud by design’ loophole

One millionaire who was able to qualify for food stamps is warning of “fraud by design.”

Rob Undersander is a retired engineer who has spent his time helping the aging population sign up for government benefits, including the Supplemental Nutrition Assistance Program (SNAP). During his training, he learned of a glaring loophole that determines eligibility for the program in Minnesota to be based on income, not assets. Speaking to Fox News Digital, Undersander sounded the alarm on how this allows even the rich to take advantage of the system and receive taxpayer funds meant for those struggling.

“To test the system, Undersander applied for benefits in Stearns County in 2016 and was approved within weeks. He later said he collected thousands of dollars in SNAP benefits over more than a year, which he donated to charity, in an effort to draw attention to the issue,” the outlet reported.

“I strongly support SNAP benefits for truly needy individuals, but when we have nearly one in seven Americans receiving food support in the wealthiest nation on earth, with a historically low unemployment rate, something is wrong,” Undersander said. “One might call the current eligibility rules fraud by design. And given the current climate of fraud and abuse of taxpayer-funded benefits in Minnesota, I’m hoping that there will be a new bipartisan effort to reduce and eliminate both.”

On Thursday, Undersander will be testifying before the Minnesota House Public Safety Committee on SNAP reforms for a bill introduced by Rep. Pam Altendorf. The legislation seeks to tighten up eligibility “by requiring stricter income and asset verification before recipients can enroll in SNAP.”

“I have purchased lobster and filet mignon on my EBT card. Isn’t that crazy?” Undersander revealed.

America First Policy Institute Health & Harvest Campaign Director Matt Schmid is also testifying at the hearing and has some strong opinions on the current state of Minnesota’s benefits system.

“SNAP is meant to help needy Minnesotans put food on the table, not to subsidize people who already have significant financial resources,” he said to Fox News Digital. “It’s unacceptable that under Minnesota’s current system, even millionaires and lottery winners can qualify for taxpayer-funded benefits. That is a fundamentally broken system.”

“Reintroducing basic guardrails like an asset test is a common-sense step to restore integrity, ensure benefits go to those who truly need them, and protect the long-term viability of the program,” he added. “This isn’t about taking help away. It’s about making sure SNAP works the way it was intended to.”

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