Vice President JD Vance announced Wednesday that federal authorities have launched a sweeping crackdown on food stamp fraud, pursuing more than 40 defendants in cases involving nearly $42 million in suspected or established theft from government assistance programs.
The nationwide operation, conducted between September 1 and October 21, uncovered schemes involving approximately $45 million in intended losses across the Supplemental Nutrition Assistance Program (SNAP) and other agricultural benefit programs, according to the Justice Department.
The enforcement campaign brought together the Justice Department’s National Fraud Enforcement Division, the U.S. Department of Agriculture, the USDA Office of Inspector General, 13 federal prosecutors’ offices, and the Utah Attorney General’s Office.
The cases span multiple states and include allegations of stolen food stamp benefits, fraudulent electronic transactions, identity theft, money laundering, illegal exchanges of government assistance for cash and other prohibited items, and the misuse of agricultural relief funds.
Authorities announced a combination of new indictments, criminal complaints, guilty pleas, and prison sentences stemming from the investigations.
U.S. Attorney General Todd Blanche condemned the schemes, saying they diverted public funds away from the Americans who rely on government food assistance.
“These schemes siphoned millions from taxpayers and robbed struggling Americans of the benefits they depend on, so fraudsters could use them for their own selfish purposes,” Blanche said.
According to figures released by the Trump administration, the latest investigations bring the total amount of SNAP-related fraud identified by Vance’s federal anti-fraud task force to approximately $641 million.
SNAP provides monthly assistance to qualifying low-income Americans for grocery purchases, with benefits distributed through electronic benefit transfer cards, commonly known as EBT cards.
The largest individual case disclosed Wednesday centers on two men accused of operating an elaborate food stamp fraud operation through authorized grocery establishments in Chicago.
Federal prosecutors allege that Jorag Yaseen and Rami Kanaan used stolen EBT account information to process thousands of fraudulent transactions, creating the appearance of legitimate grocery purchases even though no food was actually sold.
Investigators estimate that the Chicago operation resulted in approximately $29.7 million in losses.
Authorities further allege that some of the illegally obtained proceeds were used to purchase automobiles intended for personal use and shipment to destinations overseas.
Both defendants face federal charges that include wire fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
Another major investigation involves Mercedes New, a Georgia rapper and social media personality known professionally as Shawty Dred, who was indicted on October 7 in connection with an alleged multimillion-dollar theft of food assistance benefits.
New faces charges including food stamp fraud, mail fraud, access device fraud, and aggravated identity theft.
Investigators identified more than 500 Georgia EBT cards allegedly connected to New and calculated that the operation involved approximately $4.4 million in stolen benefits.
According to authorities, telephone numbers associated with New were used to contact Georgia’s automated SNAP system more than 9,000 times, obtaining access to information involving over 350 benefit accounts.
New was taken into custody in Las Vegas on October 13.
Federal investigators also uncovered schemes in which criminals used stolen food assistance benefits to obtain large quantities of infant formula, which were subsequently transported and resold for profit.
In Oregon, Ana Patricia Escalante received a 27-month federal prison sentence on September 9 after authorities determined that she directed a group responsible for collecting and moving merchandise purchased using stolen SNAP benefits.
Escalante was also ordered to repay $2.4 million in restitution.
Court records revealed that the criminal operation shipped more than 124,000 pounds of infant formula.
A total of 12 defendants have been sentenced in connection with that investigation, receiving prison terms totaling 157 months.
In Michigan, federal prosecutors pursued another identity theft operation involving the personal information of more than 650 individuals.
Kirk Deshaun Woodley admitted participating in a conspiracy that used stolen identifying information to submit fraudulent applications for SNAP benefits.
The operation, which involved approximately $1.1 million in intended losses, included co-conspirator Chantel LaShawn Peavy, who received an 18-month prison sentence Tuesday.
Woodley pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft.
Additional investigations in Michigan and Ohio focused on businesses accused of illegally converting SNAP benefits into cash, marijuana, and merchandise that cannot lawfully be purchased through the food assistance program.
In Pennsylvania, four individuals were indicted in a particularly disturbing case involving allegations that intellectually disabled women were exploited and deprived of control over their Social Security and SNAP benefits.
The charges in that prosecution include kidnapping, fraud, and transporting individuals for illicit sexual activity.
The nationwide operation also extended beyond food stamp fraud to agricultural assistance programs.
In Florida, farmer Mark Frisbie pleaded guilty on September 29 to falsifying federal crop insurance claims after admitting that he concealed millions of dollars in agricultural sales.
According to federal prosecutors, Frisbie failed to disclose more than $6 million in crop revenue, allowing him to collect approximately $1.75 million in insurance payments to which he was not entitled.
He also acknowledged improperly obtaining money from two federal programs intended to provide financial relief to farmers.
As part of his guilty plea, Frisbie agreed to pay approximately $1.51 million in restitution to the USDA’s Farm Service Agency.
Federal officials emphasized that the consequences of benefit fraud extend well beyond the financial losses suffered by the government.
Assistant Attorney General Colin McDonald, who leads the Justice Department’s National Fraud Enforcement Division, said criminals who steal SNAP benefits can leave struggling parents unable to purchase groceries for their children.
“The human cost of these fraud schemes is measured not in spreadsheets but in the panic of a mother whose card is declined and the hunger her children endure because someone hijacked their benefits,” McDonald said.
The administration also released broader enforcement figures showing that more than 1,000 retailers have been permanently disqualified from participating in SNAP.
Nearly 5,000 additional businesses have faced suspensions and administrative penalties totaling approximately $44 million for violations of program requirements.
Officials reported that federal enforcement efforts have resulted in the destruction of more than 2,200 illegal electronic point-of-sale devices used in fraudulent transactions.
Authorities have also disabled more than 2,000 compromised retailer authorization numbers, measures the administration estimates prevented more than $5 billion in potentially fraudulent transactions.
The latest enforcement announcement follows President Donald Trump’s introduction Tuesday of a new whistleblower rewards initiative intended to encourage individuals with information about government fraud to come forward.
Under the Justice Department program, individuals who provide qualifying information that results in criminal charges may receive discretionary financial awards ranging from $10,000 to $30,000.
Participants may also qualify for additional compensation through other existing government whistleblower programs, depending on the circumstances of their disclosures.
The initiative is part of the administration’s broader effort to identify fraudulent activity involving federal spending, recover taxpayer funds, and prosecute individuals and businesses accused of exploiting government assistance programs.
The Justice Department’s National Fraud Enforcement Division, established in April, has been coordinating prosecutions across federal agencies as part of President Trump’s Task Force to Eliminate Fraud, which is chaired by Vice President Vance.
Earlier this month, federal officials announced a separate nationwide tax fraud enforcement operation involving 76 defendants and more than $490 million in alleged or proven intended losses.
The October 21 food assistance crackdown represents another major enforcement action under that initiative, with prosecutors pursuing cases ranging from individual identity theft to multimillion-dollar schemes involving authorized SNAP retailers.
All defendants whose cases remain pending are presumed innocent unless and until their guilt is established in court.
{Matzav.com}