(The Center Square) – Three Detroit residents have been charged in connection to a $4 million food stamp fraud scheme.
The Center Square reported the previous charges in May against those arrested, who were caught by the Organized Retail Crime Unit operating with Michigan State Police and the Attorney General.
“Highly orchestrated organized retail crime costs Michigan businesses and consumers millions of dollars each year,” Michigan Attorney General Dana Nessel said in a statement Friday afternoon. “I am proud of the continued efforts of my department’s ORC Unit and the ‘FORCE’ Team and the various law enforcement agencies to make sure all the perpetrators in this case are brought to justice.”
The food stamp fraud ring allegedly bought stolen electronic benefit card data from 8,000 people mostly residing in California, cloned EBT cards in Michigan, and then used taxpayer funds to buy goods in-person at metro Detroit Sam’s Club stores.
The defendants are:
Charles Williams, 35, of Detroit, arraigned in the 46th District Court on one count of conducting a criminal Enterprise, a 20-year felony, and five counts of food stamp fraud.Darian Palmer, 22, of Detroit, arraigned in the 52-3 District Court on one count of conducting a criminal enterprise, a 20-year felony, and five counts of food stamp fraud.Rashawn Stewart, 24, of Detroit, arraigned in the 43rd District court on one count of conducting a criminal enterprise, a 20-year felony, and five counts of food stamp fraud.
Three other Metro Detroit residents were charged in May.
On May 24th, search warrants were executed on eight locations in metro Detroit leading to the arrest and arraignment of three individuals on felony charges for their connection to a substantial interstate food stamp fraud enterprise.
Through FOIA requests, The Center Square discovered the state of Michigan reimbursed $35,760 of reported stolen Food Assistance Program benefits in September 2022.
From June 2022 through the end of the year, MDHHS reimbursed $131,753 to residents who reported stolen funds, according to documents obtained by The Center Square.
The amount MDHHS reimbursed monthly during that time ranges from $4,400 in December to as high as $35,760 in September.
Closing the alleged crime ring required the help of the Michigan Department of Health and Human Services Office of Inspector General, Sam’s Club Global Security division, the Attorney General’s ‘FORCE’ Team and Walmart corporate security officials.
Michigan’s ORC Unit and ‘FORCE’ Team are working with seven other retailers on multiple open investigations, each including millions of dollars of retail fraud and theft. The ORC Unit and ‘FORCE’ Team are dedicated to working collaboratively with retailers and local law enforcement agencies to combat this organized crime.
