Irving Feldman, Food Stamp Benefit Fraud, NY 2024

A Pittsford man has admitted to running a multi-year, million-dollar food stamp fraud operation out of a Rochester fish market. Irving Feldman, 61, of Pittsford, NY, pleaded guilty to food stamp fraud before Chief U.S. District Judge Frank P. Geraci, Jr., capping a scheme that siphoned over $1.4 million in taxpayer-funded benefits meant for the hungry.

Feldman, owner of Upstate Fish, Inc. at 826 Joseph Avenue in Rochester, was authorized to accept Electronic Benefit Transfer (EBT) payments—government-issued food stamps distributed by the USDA. But instead of honoring the program’s mission, he exploited it. Between January 2010 and October 2015, Feldman bought EBT benefits from recipients for cash at less than half their value, turning a quick, illegal profit. Those illicit transactions totaled $1,227,063.

But the fraud didn’t stop there. Feldman directed beneficiaries to buy fish from competing stores using their EBT cards. They’d bring the seafood to Upstate Fish, and he’d pay them cash—less than the item’s cost. That side scam added another $202,620 in losses. In total, Feldman defrauded the system of $1,430,683 in benefits meant for low-income families.

“Federal programs that provide services such as food stamp benefits are designed to assist those in our community who are most in need, they are not intended to line the pockets of greedy business owners,” said Acting U.S. Attorney James P. Kennedy, Jr. “Our Office will continue to work closely with our law enforcement partners at all levels to cast a wide net to catch these fraudsters and thereby protect American taxpayers.”

New York State Inspector General Catherine Leahy Scott called the scheme “truly breathtaking in scale.” She emphasized that public benefit programs will not tolerate exploitation by unscrupulous operators. “I will continue to work collaboratively with my law enforcement partners to help ensure that unscrupulous business owners will not illegitimately profit from government sponsored public benefit programs meant for those who are in the most need of financial assistance,” she said.

The investigation was led by the U.S. Department of Agriculture, Office of Inspector General, Rochester Police Department’s Economic Crimes Division, Monroe County Department of Social Services, Homeland Security Investigations, and the New York State Office of Inspector General. Sentencing is scheduled for March 14, 2017, at 3:30 p.m. before Judge Geraci. Feldman faces up to five years in prison and a $250,000 fine.