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CAMDEN, N.J. – A Camden County, New Jersey man today admitted his role in a scheme to steal hundreds of thousands of dollars in government funds using fraudulently procured electronic benefits transfer (EBT) cards.
Juan Melo, 56, of Woodlynne, New Jersey, pleaded guilty by teleconference before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to defraud the United States and one count of defrauding the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP).
Melo and his co-defendants, Luciano Estevez, 50, and Jose Garcia, 52, both of Camden; and Octavio Rodriguez, 51, of Pennsauken, New Jersey, were previously charged by separate complaints in August 2019 with participating in the conspiracy and defrauding SNAP.
Formerly known as the food stamp program, SNAP is administered by the USDA to assist low-income individuals and families with the purchase of groceries and food items. SNAP recipients receive EBT cards, similar to commercial debit cards, to make food purchases.
According to documents filed in this case and statements made in court, Melo, Estevez, Rodriguez, Garcia, and others allegedly targeted low-income individuals who possessed or had access to EBT cards, and unlawfully purchased the cards from these individuals in exchange for cash and controlled substances.
The defendants used the unlawfully procured EBT cards to purchase bulk goods and food items from large national superstores. These goods and food items were then resold in small convenience and grocery stores owned or affiliated with the defendants or their associates, resulting in a profit for the defendants.
Estevez also unlawfully procured an EBT terminal registered to a superstore in Philadelphia to use at his small grocery store in Camden, where Melo was an employee. Through this terminal, the scheme netted approximately $110,000 in SNAP funds.
Each of the counts to which Melo pleaded guilty carry a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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