On the Hook

271
On the checkout line.

At Seafood and More in Danville, Va., you can order up some frog legs, jumbo shrimp, oysters, crab cakes, and even alligator if you’re adventurous. And apparently, in the past, SNAP benefits were also available for market price. (I can guarantee you that particular item was NOT listed on the menu.) Bobby Lee James, owner of the restaurant, has pleaded guilty to Supplemental Nutrition Assistance Program (SNAP) fraud for illegally exchanging cash for SNAP benefits.

Court documents provided evidence that SNAP redemptions by Seafood and More exceeded the State of Virginia’s average for all other seafood specialty class stores by more than $2,465,555. (An abundance of sea creatures must have been jumping right into James’ nets, along with a few folks who were trying to illegally cash in their government food assistance benefits.)

It’s ok for beneficiaries to redeem their SNAP benefits for food, such as seafood and other approved items, but not cash. The more than $2.4 million in transactions caught the attention of law enforcement, who followed up on their suspicions by opening an investigation.

James, 69, admitted that he redeemed SNAP benefits for cash at the establishment for approximately eight years. He also confessed to telling his employees to do the same. (Apparently, investigators reeled in another confession: he knew his actions were wrong.)

Altogether, Seafood and More caused the SNAP program to lose $1,835,767. James pleaded guilty today to one count of wire fraud and one count of food stamp fraud. When sentenced, James faces a maximum of 20 years in prison and/or a fine of up to $250,000. (I highly doubt the justice system will let this big catch off the hook.)

Today’s Fraud of the Day comes from a Department of Justice press release, “Danville Restaurant Owner Pleads Guilty to Wire Fraud, Food Stamp Fraud,” dated January 27, 2021.

ROANOKE, Va. – Bobby Lee James, the owner of Seafood & More in Danville, Virginia, pleaded guilty today in U.S. District Court in Roanoke to defrauding the Supplemental Nutrition Assistance Program (SNAP) by exchanging cash for SNAP benefits, Acting United States Attorney Daniel P. Bubar announced today.

James, 69, pleaded guilty today to one count of wire fraud and one count of food stamp fraud. At sentencing, James faces a maximum statutory penalty of up to 20 years in prison and/or a fine of up to $250,000.

 

SHARE
Previous articleSomething’s Shifty
Next articleSlowly but Surely
Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.