Tuesday, August 30, 2016

14 Baltimore-area retailers indicted involved in $16 million in food stamp fraud

The Baltimore Sun reports:
The Maryland U.S. Attorney's Office on Tuesday announced indictments against 14 Baltimore-area retailers who allegedly defrauded $16 million from federal food assistance programs.

The office will hold a 2 p.m. news conference with officials from the FBI Baltimore office and U.S. Department of Agriculture.

In 2013, a federal grand jury indicted 10 owners or operators of local businesses for stealing nearly $7 million from food assistance programs by agreeing to debit cash for beneficiaries without selling food.

Supplemental Nutrition Assistance Program, known as SNAP uses debit cards that can be used to purchase approved food items like fruits, vegetables, and other grocery staples. The 2013 indictment alleged that the store operators allowed customers to convert the cards into cash, instead of approved food items. The shop employees then split the proceeds.
The great moments of the Welfare State.