SAVANNAH, Ga. – Rashella Reed, a 41-year-old former Atlanta Public School teacher from Riverdale, Georgia, was sentenced on Wednesday, April 10, 2024 by United States District Judge William T. Moore, Jr. to serve 14 years in prison for her role in a massive $8 million fraud upon the Food Stamp and WIC programs.
Reed and two others were convicted after a 4-day jury trial of conspiring to defraud the Supplemental Nutrition Assistance Program (SNAP), commonly known as the Food Stamp Program, and the Women, Infant and Children Program (WIC). In addition to her prison sentence, Reed was ordered to serve 3 years of supervised release upon her release from prison and to pay $8,254,239.46 in restitution.
According to evidence presented during the trial and at Reed’s sentencing, Reed and others conspired to traffic over $8 million in government benefits from the Food Stamp and WIC programs, and to launder the proceeds of their ill-gotten gains.
The scheme involved 13 storefronts throughout Georgia, including stores in Savannah, Augusta, Atlanta, Decatur, Macon and Columbus. Reed owned and operated the Decatur, Georgia store known as, “The Baby Spot.” The 13 stores amounted to “pretend” grocery stores, which were used as a front to buy over $8 million in food stamp benefits and WIC vouchers for cash.
Food Stamp and WIC recipients were paid anywhere from $.10 to $.60 on the dollar for their benefits; Reed and other conspirators pocketed the rest. The organization was attempting to expand into Alabama and Tennessee when it was dismantled by federal agents investigating the case.
A total of 16 defendants were charged with the scheme; 13 pled guilty and 3 were convicted at trial. To date, this case was the largest prosecution of its kind in the State of Georgia.
United States Attorney Edward J. Tarver said, “SNAP and WIC are part of the hunger safety net put in place to provide assistance to eligible, low-income individuals and families who qualify. These defendants scammed federal food programs, swindled American taxpayers and literally took food out of the mouths of children.”
Karen Citizen-Wilcox, Special Agent-in-Charge of the United States Department of Agriculture, Office of Inspector General said, “This OIG investigation shows how greed attracts individuals at all levels. Ms. Reed was college-educated and employed as a teacher. However, she found it necessary to take part in a multi-million dollar fraud scheme that offended the sensibilities of the American taxpayer and deprived needy individuals of nutrition.”
The prosecution of this case arose out of an investigation led by Special Agent Salina Walker of the USDA-OIG. Assistant United States Attorneys James D. Durham and E. Gregory Gilluly prosecuted the case for the United States.
For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Related Federal Cases
- Nya Irving, Food Stamp Fraud, Mississippi 2023 · Washington
- Frank Andrew Waszut, Threats to Federal Official, Georgia 2024 · Washington
- Alexis Salgueiro-Rodriguez, Bank Fraud, Tennessee 2022 · Florida
- Florence Rosale Julio, Money Laundering, Georgia 2015 · Louisiana
- Maurice Shuler, U.S. Treasury Check Theft, Georgia 2024 · Louisiana
Key Facts
- State: Georgia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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