Baltimore, MD – A brazen scheme to deceive the Supplemental Nutrition Assistance Program (SNAP) has been dismantled, with nine retail store owners or operators facing federal charges for food stamp fraud and wire fraud. The indictment alleges that the retailers received almost $7 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.”
The indictments, announced by United States Attorney Rod J. Rosenstein, allege that the retailers exchanged EBT benefits for cash, in violation of the food stamp program rules. The indictments allege that the defendants typically paid half the value of the EBT benefits in cash. To avoid detection, the defendants often debited the funds from the card in multiple transactions over a period of hours or days.
As a result of unlawful cash transactions, the defendants obtained more than $6,898,000 in EBT deposits for transactions in which the stores did not provide food. The indictment alleges that the defendants listed below owned and/or operated stores in Baltimore that were authorized to accept SNAP.
Abdullah Aljaradi, age 51, of Baltimore; operated Second Obama Express and D&M Deli and Grocery, 901 Harlem Avenue, Suite A and B, respectively. From October 2010 through July 2013, Aljaradi allegedly obtained more than $2 million in payments for food sales that never occurred.
Dae Cho, age 66; and Hyung Cho, age 40, both of Catonsville; operated K&S Food Market, 3910 W. Belvedere Avenue. From November 2010 through July 2013, Dae Cho and her son, Hyung Cho, allegedly obtained more than $4.9 million in payments for food sales that never occurred.
Taxpayers fund the food stamp program to put food on the tables of needy recipients, not to put money in the pockets of greedy criminals,” said U.S. Attorney Rod J. Rosenstein. “Food producers and distributors benefit when food stamp funds are used to buy food, and honest storeowners work hard to earn a profit by actually selling food. People who play by the rules deserve to know that criminals who defraud them will be held accountable.”
Federal agents arrested the defendants and executed search warrants at the stores and related locations this morning.
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card.
Related Federal Cases
Key Facts
- State: Maryland
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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