Related Federal Cases
- Michael Smith, AI-Generated Song Fraud, Manhattan NY, 2023 · North Carolina
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2023 · New York
- Tracey Hernandez, Tax Fraud, Burlington NC, 2021-2022 · North Carolina
- No Defendant Name Found, Bank Fraud Scheme, USA, 2022 · Pennsylvania
- Efraim Steif and Uri Koenig, Medicaid Fraud, Syracuse NY, 2023 · New York
Fernan Sanchez, SNAP Fraud, North Carolina 2023
Raleigh, N.C. – A man has been sentenced to 48 months in prison for SNAP fraud and conspiracy to commit money laundering charges, U.S. Attorney Robert J. Higdon, Jr. announced today.
Fernan Sanchez, 52, of Warsaw, was also ordered to pay restitution in the amount of $464,385.60 and to forfeit criminal proceeds and property used in the crimes.
According to court documents, Sanchez previously pled guilty to making material false statements in connection with the on-going federal crop insurance fraud investigations in Eastern North Carolina. On April 9, 2010, the Court granted the government’s motion for a departure based on substantial assistance and sentenced Sanchez to 5 years’ probation.
Sanchez’s 2010 felony conviction made him ineligible to participate in SNAP and he was permanently disbarred from the program. Notwithstanding his debarment, Sanchez recruited another person who, at Sanchez’s direction, created a business entity known as Selena’s Mexican Bakery & Store, opened a bank account in the name of Selena’s Mexican Products, and submitted an electronic SNAP vendor application that contained false and misleading information.
The co-conspirator received authorization to be a SNAP vendor in August 2013. The co-conspirator opened up a bank account, listing Sanchez on the account. From August 30, 2013, through September 24, 2017, Selena’s Mexican Bakery & Store received approximately $464,385.60 in SNAP benefits.
Sanchez trafficked SNAP EBT benefits, allowing individuals to exchange benefits for cash or ineligible purchases. Sanchez and/or another person, through Selena’s Mexican Products, also caused the transfer of $464,385.60 SNAP funds to Selena’s Mexican Products business account at First Bank. Sanchez transferred a portion of the money to an account controlled exclusively by him. He withdrew or otherwise spent the remaining SNAP funds in the Selena’s Mexican Products business account.
U.S. District Judge James C. Dever II presided over the sentencing hearing. Assistant U.S. Attorney Banumathi Rangarajan is prosecuting the case. The United States Department of Agriculture – Office of Inspector General, Investigations and the Internal Revenue Service – Criminal Investigations conducted the investigation in this matter. Special thanks to the Warsaw Police Department for their assistance in the investigation.
Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News