Six people are facing serious charges in connection with a massive food stamp fraud scheme, the Department of Justice (DOJ) announced. The alleged scheme raked in a staggering $66 million by exploiting the Supplemental Nutrition Assistance Program (SNAP).
The Scheme: Illegal Terminals and Bribery
The DOJ alleges that Michael Kehoe led a group that illegally obtained and installed 160 electronic benefit transfer (EBT) terminals across New York. These terminals were placed in unauthorized locations, such as smoke shops, allowing SNAP recipients to use their benefits for non-food items. The scheme allegedly started in 2019.
Inside Job? USDA Employee Involved
Adding to the severity of the case, one of the accused, Arlasa Davis, allegedly worked for the USDA. Prosecutors say Davis abused her position by providing confidential information – a list of authorized store license numbers – to the fraudsters in exchange for bribes. This allowed the group to obtain EBT terminals for stores that weren’t approved to accept SNAP benefits.
Consequences and Quotes
U.S. Attorney Perry Carbone stated that the defendants stole tens of millions of taxpayer dollars intended to help low-income families. He emphasized the betrayal of public trust by Davis and the impact on vulnerable New Yorkers who rely on the SNAP program.
If convicted, the six individuals – Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh, and Arlasa Davis – face lengthy prison sentences.
