Alexander D. Vargas, Food Stamp Scheme, New Jersey 2012

Camden Man Admits Stealing $2.5 Million in Food Stamps

A Camden man today admitted that he stole more than $2.5 million dollars from the U.S. Government through a food stamps scheme, U.S. Attorney Paul J. Fishman announced.

Alexander D. Vargas, 34, pleaded guilty today before U.S. District Court Judge Joseph H. Rodriguez to an information charging him with stealing U.S. Government monies during a scheme in which he purchased Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps) for approximately 50 cents on the dollar at the local grocery store he managed in Camden.

Vargas managed Eddies Grocery, a small store in Camden that was authorized to accept SNAP benefits. According to documents filed in this case and statements made in court, Vargas and his accomplices were able to swindle millions of dollars from the government by exchanging SNAP benefits for cash at the store.

From January 2012 through December 2012, Vargas and his accomplices stole more than $2.5 million in food stamps, with Vargas taking in $1,869,266 in cash withdrawals. The store's bank records showed total cash withdrawals of $3,109,776 for the 2012 calendar year.

Vargas faces a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Under the terms of the plea agreement, Vargas has agreed to forfeit $22,273 seized from him on the date of his arrest, and has also agreed to the entry of a forfeiture money judgment for $2,981,642. Sentencing is scheduled for February 5, 2014.

The U.S. Department of Agriculture's Office of Inspector General investigated the case, with the assistance of the Camden Police Department. U.S. Attorney Fishman credited special agents of the Office of Inspector General for their role in the investigation.

Source: https://www.justice.gov/usao-nj/pr/camden-nj-man-admits-he-exchanged-more-25-million-snapfood-stamp-benefits-cash