(The Center Square) – Federal agents have busted what they’re calling a SNAP fraud ring in Los Angeles.
It happened on July 2. The USDA Office of Inspector General and Homeland Security Investigations executed search warrants, leading the Food and Nutrition Administration to issue formal charge letters to 33 Supplemental Nutrition Assistance Program-authorized stores.
According to the U.S. Department of Agriculture, six locations were caught exchanging SNAP benefits for cash. Twenty-seven others are accused of illegally exchanging benefits for prohibited items such as vape products and alcohol.
As a result of this case, the retailers face prosecution, fines and a permanent disqualification from the SNAP program.
“The days of defrauding government benefit programs are over,” said Bill Essayli, first assistant U.S. Attorney for the Central District of California, in a press release. “We’re talking federal prison sentences, not state misdemeanor charges. You’ve been warned.”
Roxanne Hoge, chair of the Republican Party of Los Angeles County, was glad to see the news.
“Nice!!” Hoge posted on X.
The bust comes as the Trump administration is cracking down on waste, fraud and abuse.
Tim Anaya, vice president of marketing and communications for Pasadena-based Pacific Research Institute, said it is a good thing that state and federal officials are aggressively going after fraudsters who seek to abuse the generosity of California taxpayers.
“Every dollar that is lost to fraud or a program error is a dollar that isn’t available to help Californians who are truly in need,” Anaya told The Center Square. “While organized crime rings have long targeted CalFresh, the Newsom administration has used new technology to crack down on fraud, and it says there has been an 83% decline in theft using EBT cards.” CalFresh is what California calls SNAP.
According to Anaya, much of the ongoing problem with CalFresh is due to payment errors tied to income verification and eligibility determination, which is a growing concern for California taxpayers.
“It could be a huge state budget issue in the coming years as taxpayers may be on the hook for significant new costs of around $2 billion annually for CalFresh if the state doesn’t reduce its high payment error rate, which the nonpartisan State Auditor’s office found was around 11%,” said Anaya.
