Dwayne Carter, Food Stamp Fraud, Virginia 2015

Norfolk Longshoreman Convicted of Food Stamp Fraud

NORFOLK, Va. – A Norfolk longshoreman was sentenced to 29 months in prison for his role in a food stamp benefits fraud scheme that netted over $1.9 million.

Dwayne Carter, 38, of Norfolk, pleaded guilty on April 27, 2015, to conspiracy to engage in food stamp benefits fraud. He was ordered to pay $1,928,633.10 in restitution to the United States Department of Agriculture (USDA) and the Food and Nutrition Service (FNS).

Carter, the son of James Robert Carter, who owned and operated Merrimac Market in Norfolk, used the cash register at the store to debit funds from customers who had presented their Electronic Benefits Transfer (EBT) cards. The customers were then paid half the value of the amount debited in cash, in a scheme to avoid detection.

The Carters used the EBT cards to debit funds in multiple transactions over a period of minutes, hours or days, which allowed them to obtain approximately $1,928,663 from the USDA/FNS SNAP Program.

James Robert Carter, the owner of Merrimac Market, was convicted earlier this year and sentenced to 30 months in prison and ordered to pay restitution in the amount of $2,275,889.59. The restitution amounts between the Carters are joint and several.

The case was prosecuted by Assistant U.S. Attorney Stephen W. Haynie and investigated by the U.S. Department of Agriculture, Office of Inspector General, and the IRS-Criminal Investigation, Washington D.C. Field Office.

The sentencing was announced by U.S. District Judge Robert G. Doumar, Sr., after Carter was found guilty of conspiracy to engage in food stamp benefits fraud.

The scheme was uncovered after an investigation by the U.S. Department of Agriculture, Office of Inspector General, and the IRS-Criminal Investigation, Washington D.C. Field Office.

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