[TexasCajun]

You asked: "How would you punish this?"

I focused on your question!

If gullible people didn't fund his lifestyle maybe he'd have to find a legitimate job.

[Olog-hai]

So why should what he did be legal in any instance?

Your “punishment” is with a communistic outlook. All it focuses on is non-reporting of the “income” to the government (and to blazes with the people he defrauded), and apparently not having a problem with his being on welfare since merely not reporting “income” while being on welfare was included. Capitalism involves honesty and will to work versus dishonesty and sloth; aught else smacks of socialism.