The U.S. Department of Justice (DOJ) is charging six people linked to a multimillion-dollar food stamp and bribery scheme.
In a new press release, the DOJ is announcing charges against six individuals connected to a “sprawling” scheme that hauled in $66 million in food stamps by allegedly abusing the Supplemental Nutrition Assistance Program (SNAP).
The suspects – Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh, and Arlasa Davis – are charged with conspiracy to steal government funds and with misappropriating U.S. Department of Agriculture (USDA) benefits, among other charges.
Authorities say that starting in 2019, Kehoe and his co-conspirators allegedly submitted fraudulent applications to obtain machine terminals that accepted payments from SNAP recipients for unauthorized places, such as smoke shops.
SNAP recipients use specialized payment cards to purchase food at stores. According to the press release, Kehoe set up 160 illegal terminals across New York and processed millions of dollars worth of fraudulent EBT (Electronic Benefit Transfer) transactions.
One of the members of the group – Davis – worked for the USDA and is suspected of using her position to acquire and distribute a list of license numbers for qualifying stores, which allowed the thieves to illegally obtain EBT terminals for stores not authorized by the USDA. In return, she received bribes disguised as gifts.
As stated by U.S. Attorney Perry Carbone,
“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 by selling confidential government information to the very criminals she was supposed to catch.
Their actions undermined a program that vulnerable New Yorkers depend on for basic nutrition. These charges should be a reminder that those who exploit anti-poverty programs for personal gain will be held accountable for their crimes.”
If convicted, the suspects face decades behind bars.
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