That's not fraud ... because Smellitt didn't put any of that money in his pocket. And those police would have been paid anyway.
If he had staged a fake hate crime and then claimed reward money for turning in another perp, on the other hand, then fraud would absolutely be a legitimate charge.
Have a look around www.law.cornell.edu/uscode/text/18/part-I/chapter-47. (These are Federal statutes.) And please leave me alone.
ML/NJ