Hungry for Fraud

42690452 - payment using chip plastic card in pos terminal

The U.S. Bureau of Labor Statistics reports that in 2012, the annual expenditure for food by a single consumer was approximately $3,900. The Democrat & Chronicle describes the story of a grocery store operator who received nearly twice that amount in food stamp benefits per month. (Either that guy was really hungry or something was amiss.)

The story reports that over a 20-month period of time, the 35-year-old man fraudulently acquired and possessed more than $120,000 in food stamp benefits issued by the U.S. Department of Agriculture. (That amounts to about $6,000 per month in food stamp transactions.) These benefits were intended to be used by beneficiaries to purchase eligible food items; but instead, the defendant purchased those benefits by swiping the food stamp benefit card through the terminal at the grocery store in Rochester, and then paid out 50 percent of the value. (Did I also mention that the fraudster also reported to an insurance company that he was injured and unable to work while employed at the grocery store?)

The criminal was found guilty of food stamp fraud, in addition to mail fraud. He was sentenced to three years of supervised release and ordered to pay more than $75,000 in restitution.

Criminals, such as this guy, have an insatiable appetite for greed. My guess is that he’ll be on a new diet plan while trying to come up with the cash to pay restitution.

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Greece Man Sentenced for Food Stamp Fraud,” published by the Democrat & Chronicle on February 13, 2014.

A Greece man has been sentenced to three years of supervised release after being found guilty of food stamp fraud.

Federal prosecutors said Thursday that Mohammad Qadi, who was also convicted of mail fraud, was ordered to pay restitution of $75,744.

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.