<p>My understanding is that the person who fills out the application is the one responsible for the fraud. If she claimed she was not married, then I do not think they will hold your father liable for her welfare application. At most, he would be "investigated" but I sincerely doubt that anything would come of it. The money was sent specifically to your mother. </p>
<p>FAFSA is filed in January at the earliest (you have to have 2006 tax info) so see what happens in the next few months, fill out the FAFSA correctly and just submit it.</p>