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Food Stamp Fraud Ring Busted in RI
A two-year investigation has resulted in the indictment of six individuals and the guilty pleas of three others in connection with a massive food stamp fraud scheme in Rhode Island. The scam, which defrauded the Supplemental Nutrition Assistance Program (SNAP) of over $3 million, involved the use of Electronic Benefit Transfer (EBT) cards to exchange SNAP benefits for cash at five Providence area businesses.
United States Attorney Peter F. Neronha announced the findings of the investigation, which was conducted by the U.S. Attorney’s Office, the U.S. Department of Agriculture, Office of Inspector General, and other law enforcement agencies. The investigation involved undercover operations at area convenience stores, as well as the examination of thousands of documents, bank records, and tax filings.
The five Providence area businesses named in court documents as being involved in the scam are the Corner Store, Regency Mart, Stop & Go, Dugout, and Cristina’s Market. It is alleged that store owners and/or employees allowed SNAP benefit recipients to use their EBT cards to exchange their benefits for cash, and then added a surcharge to the recipients’ withdrawal of SNAP benefits.
“The conduct alleged in the charging documents removed a tremendous amount of money from the food stamp benefit program that could otherwise go to feed a hungry adult or a hungry child,” said United States Attorney Peter F. Neronha. “Such conduct on the part of some food stamp recipients is plainly improper, and subject to administrative action. Such alleged conduct on the part of retailers, motivated only by greed, is outrageous, and warrants the full attention of this Office and our law enforcement partners.”
In addition to the criminal charges, the USDA Food and Nutrition Service has permanently disqualified 37 Rhode Island retailers from participating in the food stamp program and sanctioned 15 others for violating the program’s laws and regulations. Violations ranged from allowing the purchase of unauthorized merchandise to trafficking cash.
“The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need assistance,” said USDA Office of Inspector General, Special Agent in Charge William G. Squires Jr. “Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office.”
The indictment and guilty pleas are the result of a joint investigation between the U.S. Attorney’s Office, the U.S. Department of Agriculture, Office of Inspector General, U.S. Department of Agriculture, Food and Nutrition Service, Retailer Investigations Branch, Internal Revenue Service Criminal Investigation, and the Rhode Island State Police.
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Key Facts
- State: Rhode Island
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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