USDA Employee and Five Others Busted In One of the Largest Food Stamp Frauds in American History

USDA Employee and Five Others Busted In One of the Largest Food Stamp Frauds in American History

The U.S. Attorney’s Office for the Southern District of New York announced a major food stamp fraud case involving a USDA employee and five others.

The fraud is described as one of the largest food stamp frauds in U.S. history.

Perry Carbone (U.S. Attorney), Charmeka Parker (Special Agent in Charge, USDA Office of Inspector General), and Christopher G. Raia (Assistant Director, FBI New York Field Office) revealed a superseding indictment.

The indictment charges six individuals: Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh, and Arlasa Davis.

The fraud scheme involved over $66 million and targeted the Supplemental Nutrition Assistance Program (SNAP).

Charges include conspiracy to steal government funds and misappropriate USDA benefits.

Arlasa Davis, a USDA program specialist, worked in the division responsible for identifying SNAP fraud.

Michael Kehoe initiated a network in 2019 that distributed approximately 160 illegal EBT terminals to stores in the New York area.

The network stole over $30 million in EBT transactions.

Kehoe, with Nawafleh, Omar Alrawashdeh, Obaid, and Emad Alrawashdeh, submitted around 200 fraudulent USDA applications.

The group misappropriated USDA license numbers and forged application documents to acquire EBT terminals for unauthorized stores.

Unauthorized stores included smoke shops and other businesses ineligible for USDA funds.

Arlasa Davis sold hundreds of EBT license numbers, enabling the fraud.

Davis’s actions facilitated over $36 million in fraudulent SNAP redemptions at unauthorized stores.

Davis photographed handwritten lists of license numbers intended for qualifying stores using her personal cell phone.

Davis sent these license numbers to an intermediary, who sold them to the other co-conspirators.

Each of the six individuals faces charges of:

Conspiracy to steal government funds and misappropriate USDA benefits (maximum 5-year sentence).

Theft of government funds (maximum 10-year sentence).

Misappropriation of USDA benefits (maximum 20-year sentence).

Arlasa Davis faces additional charges:

Conspiracy to commit bribery (maximum 5-year sentence).

Bribery (maximum 15-year sentence).

Conspiracy to commit honest services wire fraud (maximum 20-year sentence).

If convicted on all charges, Davis could face a lifetime in prison.

The scheme undermined a program intended to provide basic nutrition for vulnerable New Yorkers.