@Joseph: I agree with you that the Halachos of L”H and DL”Z are in full force, but I think OP has a point worth considering.
Whether or not this is true, what is true is that Frum Yidden often rely heavily upon government assistance, and, for a large enough number, they are ok with bending certain things in order to get more money. These may not be illegal, but it has given our communities a “sheim” in the world, both in the non-Chareidi Frum world and in the non-Frum/non-Jewish world.
Whether or not any crimes were committed and whether or not anyone did anything wrong, it’s fact that many people in Lakewood were calling up in the following days to correct some perceived errors and downgrade or cancel their assistance. This means that- illegal or not- there were perceptions of impropriety that were occurring, and according to the article posted by YWN June 28, 2017 9:30 am, even perception can lead to CH”S.
I think that- without talking L”H about people, and without judging whether they were right or wrong- we can take this opportunity to conduct a general cheshbon hanefesh into how we’re dealing with the government as a community (or as multiple communities) and if we should possibly change some of the things we’re doing.