USDA Employee Among Six Charged in Massive $66 Million Food Stamp Fraud Scheme
In a shocking revelation, authorities have charged a U.S. Department of Agriculture (USDA) employee along with five accomplices in a brazen scheme that defrauded the Supplemental Nutrition Assistance Program (SNAP)—commonly known as food stamps—of an astonishing $66 million. The U.S. Attorney’s Office for the Southern District of New York has labeled this operation as “one of the largest food stamp frauds in U.S. history.” Let’s delve deeper into this audacious crime and its implications.
Unauthorized EBT Terminals and Fake Transactions
How the Scam Unfolded
At the helm of this fraudulent operation was Michael Kehoe, who orchestrated a network based in New York. This group manipulated the government by obtaining approximately 160 Electronic Benefit Transfer (EBT) machines intended for businesses that didn’t meet eligibility requirements. These included unexpected players like smoke shops and other unauthorized retailers.
As a result, these businesses engaged in fake transactions, amassing over $30 million in prohibited EBT activities. Such actions not only defy federal law but also take resources away from those who genuinely need assistance.
USDA Employee Accused of Betrayal
The Inside Job
The plot thickens with the involvement of Arlasa Davis, a long-time USDA employee dedicated to preventing SNAP fraud. Allegedly, she used her internal access to pilfer EBT license numbers, which were crucial in executing various fraudulent transactions exceeding $36 million.
In a disturbing twist, Davis is said to have photographed lists containing valid license numbers meant for approved retailers, sending these sensitive documents directly to her conspirators. This act of betrayal allowed them to unlawfully acquire EBT machines for ineligible businesses, undermining the integrity of the SNAP program.
In return for her complicity, Davis reportedly accepted bribes masked as innocuous gifts, such as birthday presents and flowers. This underscores a profound breach of trust in a system designed to aid the most vulnerable among us.
Statement from the U.S. Attorney
U.S. Attorney Perry Carbone expressed strong condemnation of the accused:
“Michael Kehoe and his co-conspirators misappropriated tens of millions of dollars in taxpayer funds meant to help low-income families put food on the table. This fraud was made possible when USDA employee Arlasa Davis betrayed the public trust… Their actions undermined a program that vulnerable New Yorkers depend on for basic nutrition.”
This statement highlights the gravity of the crime and sets the stage for accountability among those who exploit anti-poverty programs for personal benefit.
Criminal Charges and Potential Penalties
The individuals charged in this far-reaching scandal include Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh, and Arlasa Davis. Collectively, they face:
- One count of conspiracy to steal government funds and misappropriate USDA benefits
- One count of theft of government funds
- One count of misappropriation of USDA benefits
If found guilty, each defendant could face up to 35 years in prison.
Additionally, Davis confronts more severe accusations, including:
- One count of conspiracy to commit bribery
- One count of bribery
- One count of conspiracy to commit honest services (wire fraud)
These additional charges could escalate her potential prison time by up to 40 years.
Nawafleh faces a unique charge of failure to appear, which carries with it a maximum sentence of 10 years.
Conclusion: A Stark Reminder
This unfolding saga serves as a stark reminder of the lengths to which individuals will go for personal gain, exploiting systems meant to support those in need. The actions of Kehoe, Davis, and their collaborators bring to light serious vulnerabilities within important social programs. As the investigation continues, it reinforces the commitment of authorities to hold accountable those who seek to defraud the system.
To learn more about fraud prevention in government programs, check out resources from the U.S. Department of Justice and stay informed about the ongoing fight against corruption in welfare systems.
