Federal and state investigators have charged a Missouri man for orchestrating a large-scale Supplemental Nutrition Assistance Program (SNAP) fraud scheme that converted taxpayer-funded food benefits into cash through a network of cooperating retailers. According to the U.S. Department of Justice and the Missouri Attorney General’s Office, the defendant recruited SNAP recipients to exchange Electronic Benefit Transfer (EBT) funds for cash at a steep discount.
Authorities allege that over several years, the operator partnered with multiple small convenience stores across St. Louis County, processing fraudulent SNAP transactions that appeared legitimate on the surface. In reality, no groceries were exchanged. Instead, recipients received cash while retailers retained a percentage of the benefits and submitted false transaction records to the state.
Investigators say the scheme relied on stolen and recycled identities, with EBT cards linked to deceased individuals and out-of-state beneficiaries who no longer qualified for assistance. Transaction data showed repeated high-dollar purchases occurring within minutes of each other at the same locations — a pattern inconsistent with typical grocery spending behavior.
The fraud was uncovered after analytics flagged abnormal redemption volumes at several stores, prompting a joint investigation involving the USDA Office of Inspector General, the FBI, and state program integrity units. Financial records revealed that proceeds were laundered through multiple business accounts and used to fund personal expenses, including vehicles and short-term rental properties.
“This was an intentional abuse of a program designed to support families facing food insecurity,” said Missouri Attorney General Andrew Bailey. “Fraud of this nature undermines public trust and diverts resources from those who truly need assistance.”
The defendant faces charges including wire fraud, SNAP trafficking, and identity theft, with restitution expected to exceed $2 million.
Today’s Fraud of the Day is based on reporting from the U.S. Department of Justice and the Missouri Attorney General’s Office regarding SNAP fraud investigations in 2025.
