In a significant crackdown on fraud, authorities have charged a U.S. Department of Agriculture (USDA) employee and five others in a scheme that allegedly siphoned $66 million from the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps.
The U.S. Attorneys Office for the Southern District of New York has described this as one of the largest food stamp frauds in U.S. history.
According to Straight Arrow News, Michael Kehoe is accused of orchestrating a New York-based network that deceived the government into issuing approximately 160 electronic benefit transfer (EBT) machines to businesses that were ineligible, such as smoke shops.
These establishments reportedly engaged in fraudulent transactions, amassing over $30 million in illegal EBT activity, in direct violation of federal law. Arlasa Davis, a veteran USDA employee, is accused of exploiting her position to access and steal EBT license numbers, facilitating over $36 million in fraudulent SNAP transactions.
Davis allegedly photographed lists of valid license numbers and shared them with her accomplices, who then used the information to secure EBT terminals for unauthorized businesses.
In return, Davis purportedly received bribes disguised as gifts, including birthday gifts and flowers, as noted by the U.S. Department of Justice.
U.S. Attorney Perry Carbone stated, 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. He further emphasized the betrayal of public trust by Davis, who sold confidential information to the very criminals she was tasked with apprehending. The charges serve as a stern warning against exploiting anti-poverty programs for personal enrichment.
The accused, including Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh, and Davis, face multiple charges, including conspiracy to steal government funds and misappropriation of USDA benefits, with potential sentences of up to 35 years in prison.
Davis faces additional charges related to bribery, which could extend her sentence by up to 40 years. Nawafleh also faces a charge of failure to appear, carrying a possible 10-year sentence.
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