The Los Angeles County Department of Welfare Fraud Prevention and Investigation is looking into Suleman, 37, who became infamous in January 2009 when she gave birth to eight children, ABC News reported Friday.
Suleman, who has 14 children, is entitled to welfare assistance if she makes less than $119,000, E! online reported. She originally stopped accepting welfare last summer.
Gina Rodriguez, a representative for Suleman, said in January the mother was going back on assistance because she had spent all of her income from strip dancing, a pornographic film and other publicity appearances and sought out "state assistance for a brief period of time."
Rodriguez said Suleman's savings were depleted when she entered rehab in October for "anxiety, exhaustion and stress."
Suleman faces as much as three years in prison if convicted of fraud.