Feds Bust "One Of The Largest Food Stamp Frauds Ever"

Tyler Durden's picture




 

With nicknames like "The Money Wizard" and "Gran Hustle," 88 people have been indicted in what the FBI calls "one of the largest federal food program frauds ever." Grocery stores were created for the express purpose of laundering WIC (Women, Infant & Children) and Food Stamp (EBT) funds from willing benefits-receivers who were given discounted cash for the "food" stamps canvassed from "low income neighborhoods" in Georgia. The government seeks the forfeiture of $20 million in bank accounts and assets, including two luxury vehicles, a 2008 Mercedes Benz and a 2008 Land Rover. Exceptional!

Via The FBI,

Georgia’s Women, Infant, and Children (WIC) program provides infant formula, juice, eggs, fresh fruits and vegetables, and other healthy foods to low-income pregnant and postpartum women and to infants and children up to age 5 who are nutritionally at risk.

 

The Food Stamp Program, now known as the Supplemental Nutrition Assistance Program (SNAP), provides “food stamp” benefits to low-income families through Electronic Benefit Transfer (EBT) cards, which are similar to debit cards. It is a crime to exchange WIC or Food Stamp benefits for cash.

How They Did It...

The 54-defendant indictment alleges that a number of defendants conspired to open purported grocery stores in Savannah, Macon, Atlanta, Garden City, Lithonia, LaGrange, Stone Mountain, Riverdale, and elsewhere for the purpose of buying WIC and Food Stamp benefits for cash.

Once the purported stores were opened and approved as WIC and Food Stamp vendors, many of the defendants allegedly canvassed low-income neighborhoods and solicited WIC and Food Stamp participants to illegally exchange their benefits not for food but for cash.

The defendants then allegedly bought WIC and Food Stamp benefits for cash at a fraction of the amount they received from the USDA by redeeming the benefits they had purchased. The defendants also allegedly conspired to launder over $18 million in proceeds received from their fraud upon the WIC and Food Stamp programs.

And here are the 54 defendants who ran the scheme (34 others who were involved were the ones illegally trading their oh-so-critical food stamps for cash)...
 

  • Brandon Sapp, AKA “B,” 37, Austell, Georgia
  • Kimberly Sapp, AKA “Kimberly Walker,” AKA “The Money Wizard,” 34, Austell, Georgia
  • Calvin Williams, AKA “Slick,” 39, Atlanta, Georgia
  • Isaac Martin, AKA “Ike,” 37, Jonesboro, Georgia
  • John P. Jones, AKA “JP,” 39, Ellenwood, Georgia
  • Wayne Jackson, AKA “J5,” 32, Atlanta, Georgia
  • Gregory Thomas, AKA “Rich Gregg,” 37, Atlanta, Georgia
  • Kerry Adams, AKA “Big Skreed,” AKA “Skrump,” 38, Atlanta, Georgia
  • Brian Lockhart, AKA “Lock,” 47, Atlanta, Georgia
  • Henry Ward, AKA “TY,” AKA “TYE,” AKA “Grand Hustle,” 32, Savannah, Georgia
  • Vincent Harper, 40, Atlanta, Georgia
  • Ostrando S. Brock, AKA “Shun,” AKA “Shawn,” 32, Mableton, Georgia
  • Jesse McCoy, AKA “Jay Mac,” 42, Ellenwood, Georgia
  • Terence Cosby, AKA “Me Gold,” 33, Savannah, Georgia
  • Raymond Hargrove, 27, Savannah, Georgia
  • Jacqueline Beauchamp, AKA “Jackie,” 25, Pooler, Georgia
  • Elizabeth Beauchamp, 28, Pooler, Georgia
  • Gerald Patilla, AKA “PT,” 30, Savannah, Georgia
  • Clayton Talley, 32, Pooler, Georgia
  • Ebony Jacobs, 28, Savannah, Georgia
  • Olajawon Simmons, AKA “Wan,” AKA “Won,” 27, Savannah, Georgia
  • Reginald Simmons, AKA “Reggie,” 28, Savannah, Georgia
  • Gary Grier, AKA “Bundee”, AKA “Dee,” 37, Atlanta, Georgia
  • Magregor Warner, AKA “KB,” 40, Atlanta, Georgia
  • Benjamin Tookes, AKA “B,” AKA “Ben,” 40, Atlanta, Georgia
  • Carlos Davis, AKA “Lo,” 38, Atlanta, Georgia
  • Raymond Hixon, AKA “Dre,” 38, Atlanta, Georgia
  • Thomas Thornton, AKA “Big Bo,” 27, Atlanta, Georgia
  • Branden Jordan, 32, Atlanta, Georgia
  • Mark White, 38, Atlanta, Georgia
  • Tobias Render, AKA “Tee,” AKA “Toby,” 33, Atlanta, Georgia
  • Eric Burkes, AKA “E,” 25, Atlanta, Georgia
  • Aryay Strong, 31, Atlanta, Georgia
  • Marshall Sears, 38, Atlanta, Georgia
  • Suleyma Arreola, 21, Marietta, Georgia
  • Emory White, 32, Marietta, Georgia
  • Obryan Moore, AKA “OB,” 29, Powder Springs, Georgia
  • Terry Mitchell, Jr., 43, LaGrange, Georgia
  • Corey Mitchell, AKA “Stick,” 39, Atlanta, Georgia
  • Luquoise Clay, AKA “Qui,” 30, Atlanta, Georgia
  • Jessica Cameron, AKA “Keta,” 30, Grantville, Georgia
  • Joshua Dunlap, 38, Monticello, Georgia
  • Maurice Fudge, AKA “Reese,” 39, Macon, Georgia
  • Quinton Matthews, AKA “Q,” AKA “Chuck Matthews,” 39, Macon, Georgia
  • Charles Jackson, AKA “Cooley Slim,” AKA “Corey,” 35, Lithia Springs, Georgia
  • Ronnie Zachary, AKA “City,” 29, Byron, Georgia
  • Porsha Drewery, AKA “Parsha,” 37, Macon, Georgia
  • Taquilla Johnson, AKA “Quilla,” 35, Macon, Georgia
  • Raheem Waller, 30, Atlanta, Georgia
  • Travis Rich, 35, Atlanta, Georgia
  • Marlon Dobbins, 29, Atlanta, Georgia
  • Derrick Heard, AKA “Da Man,” AKA “Heard,” 43, Atlanta, Georgia
  • Rahdriq Turner, AKA “Rah Rah,” 36, Rockmart, Georgia
  • Antonio Dorsey, AKA “Bear,” 34, East Point, Georgia

The WIC and Food Stamp programs are designed to provide necessary nutrition for the most vulnerable members of our society,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI is proud to have assisted the U.S. Department of Agriculture and others in protecting this program from alleged fraudulent activity in the state of Georgia.”

“This investigation and prosecution should send a strong zero-tolerance message to those individuals who create businesses for the purpose of specifically defrauding the taxpayer funded WIC and SNAP programs,” said Karen Citizen-Wilcox, Special Agent in Charge, USDA-OIG-Investigations. “It should also serve as a warning to all stores, that participate in the WIC and SNAP programs as vendors, that fraud and trafficking (purchasing those benefits for cash) will be vigorously investigated and prosecuted by

Now that is exceptional.

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Fri, 06/13/2014 - 09:53 | 4852570 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

As our Congresscritters look on and say "Do as I say, not as I do". This is referring to gubimint cheating.

Fri, 06/13/2014 - 09:58 | 4852589 The Internation...
The International Jew's picture

https://www.youtube.com/watch?v=kGjSq4HqP9Y

 

Hell yeaaa... starts at 1:30

Fri, 06/13/2014 - 10:01 | 4852618 Killer the Buzzard
Killer the Buzzard's picture

RAYCISSS!!!

Fri, 06/13/2014 - 10:10 | 4852658 Haus-Targaryen
Haus-Targaryen's picture

Christ Tyler, turn off autoplay.

Fri, 06/13/2014 - 10:19 | 4852695 Save_America1st
Save_America1st's picture

the Feds ARE the fucking food stamp fraud!  They created this whole fucking mess.  Of course they knew this kinda shit was gonig to spawn from it.  Fucking scumbag, criminal, government fucks. 

Fri, 06/13/2014 - 10:42 | 4852744 Bananamerican
Bananamerican's picture

The FBI closes in over $20 whole fricken million worth of fraud...REALLY?
Wall Streeters literally bought the NYPD gear worth more than that after the Bailouts

Fri, 06/13/2014 - 10:44 | 4852784 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Good job FBI. Know that your paychecks come from the biggest criminals of all. Now go fuck yourselves.

Fri, 06/13/2014 - 10:49 | 4852807 max2205
max2205's picture

Holder, get on this.   Racist Travon style

Fri, 06/13/2014 - 11:01 | 4852869 So Close
So Close's picture

So they go from fraud re: food stamp to being fed 3 squares a day at our expense.  Great.

Fri, 06/13/2014 - 11:06 | 4852899 ebworthen
ebworthen's picture

My thought too; they can't bust the Wall Street gangsters?

Where is Jon Corzine by the way, he stole $1.20 Billion from little old Ladies, with Jamie Dimon's help.

$20 Million is a dribble from the hose that the FED waters Wall Street with daily.

I'm glad they busted these people, but let's lop off the head, not the toenails.

Fri, 06/13/2014 - 10:28 | 4852746 Citxmech
Citxmech's picture

Shutting down criminal rackets is fine and all, but personally I'd rather see John Corzine arrested.  The scope of the institutionalized fraud at the top makes this kind of stuff look like amateur hour. 

Fri, 06/13/2014 - 10:37 | 4852765 Joe Davola
Joe Davola's picture

Hey, wasn't Me Gold a poster here?

Well, until he ran afoul the Racial Discrimination policy.

Fri, 06/13/2014 - 10:28 | 4852747 The Internation...
The International Jew's picture

Gotta keep them proles in line, right?

Fri, 06/13/2014 - 10:29 | 4852752 nope-1004
nope-1004's picture

How is what these people did any different from from the Foodstamp policy itself?  How someone gets illegitimate food or money in either scenario is the same.  Both are fraud, except when .gov prints out of thin air and masks the inflation tax, everyone thinks it's wonderful.

Both are the same fraud.

 

Fri, 06/13/2014 - 12:02 | 4853268 Tall Tom
Tall Tom's picture

Illegitamate food?

 

If the frauds of War, Wall Street, and the Federal Reserve Bank had not been perpetrated upon the American Public then the SNAP Program would not be a necessity as these people would have JOBS.

 

We have 25% Unemployment in this Nation. The "Official" Numbers are incredible...UNBELIEVEABLE. There are NO JOBS and there is NO RECOVERY.

 

Let me suggest that an army of Starving people will revolt and burn down Wall Street, the Hamptons, and every other wealthy community. Revolutions happen only when the Nation-State goes hungry.

 

That is probably our destiny anyway. Death by fire.

 

You may wish to repeat the rhetoric that a rising tide lifts all boats. Well when the boats are anchored by overwheming DEBT that tide will end up DROWNING BOTH WEALTHY AND POOR. (The wealthy carry even more DEBT as every Dollar which they have IS A DEBTOIR'S NOTE which will become VALUELESS in the oncoming Hyperinflation.)

 

Here is to hoping that you fare well in the coming FAMINE. Somehow I doubt it.

 

I will as I am Human. My GOLD will buy food and is there to feed many others....others which are DESERVING.

Fri, 06/13/2014 - 10:35 | 4852758 onewayticket2
onewayticket2's picture

if "unemployment is the best form of stimulus", then food stamps (even if fraudulent) cant be much different....(in the eyes of a liberal in DC)

 

Fri, 06/13/2014 - 10:46 | 4852797 tmosley
tmosley's picture

I changed my preferences so I have to click to enable flash.

No more autoplay bullshit, ever!

Fri, 06/13/2014 - 11:11 | 4852921 Hobbleknee
Hobbleknee's picture

How can this blatantly sexist program (WIC) even be legal?

Fri, 06/13/2014 - 12:29 | 4853436 plane jain
plane jain's picture

When men start popping out babies we can start MIC.

The fraud is crap.  The WIC program is actually better than SNAP IMO.  It might even be a little too restrictive.  It is basically ration cards for specific staple foods.  You can't use WIC to buy chips and soda, or steak and lobster for that matter.

Fri, 06/13/2014 - 11:28 | 4853032 tarsubil
tarsubil's picture

The brothers were making money off WIC. Can't have that. That is for the Waltons. Just so we know who runs the show.

The idea the WIC is for helping basic needs is shown to be a fraud by this scam. People that had been given WIC were selling them for pennies on the dollar. That means the original beneficiary went out of their way to not use WIC for basic needs.

Fri, 06/13/2014 - 11:52 | 4853185 LuciusGermanicus
LuciusGermanicus's picture

Yep it really is rayciss ;)

All aboard the food money train...

Feb. 2014:

"Two Korean citizens have been sentenced to prison for their roles in a food stamp fraud scheme and may face deportation, the U.S. Attorney in Baltimore announced this week.

The cases were part of a food stamp fraud sting that implicated 10 convenience store owners in the Baltimore area in September. Authorities said the defendants, eight of whom have pleaded guilty to food stamp fraud or wire fraud so far, would illegally redeem food stamps in exchange for cash.

Hyung Cho, 40, of Catonsville, was sentenced to 38 months in prison and three years of supervised release, and his mother Dae Cho, 67, of Catonsville, was sentenced to 18 months in prison. The Cho's, who operated K&S Market, a convenience store at 3910 West Belvedere Avenue, were both ordered to forfeit more than $371,000 and pay restitution of $1.4 million. They did not have legal immigration status, according to the U.S. Attorney's Office, and have "agreed not to object to any proceedings that may be brought to remove them from the United States upon completion of their sentence."

Authorities said the Cho's would keep 50 percent of the food stamp benefits for themselves in the illegal transactions, and that they were typically exchanging an estimated $25,000 to $30,000 worth of food stamp benefits in about 50 transactions a day.

The Cho's were the first to be sentenced. The owners of convenience stores in Park Heights, Harlem Park and Carrollton Ridge are awaiting sentencing, the U.S. Attorney's Office said."

Fri, 06/13/2014 - 10:02 | 4852621 clooney_art
clooney_art's picture

South Florida - Fort Lauderdale - Miami area has high number of welfare abusers. All live high flying lives too. A clean-up is needed here too.

Fri, 06/13/2014 - 10:10 | 4852657 skidsmango1
skidsmango1's picture

...just a variation of a play torn out of the SSN playbook.

Fri, 06/13/2014 - 11:04 | 4852888 Canadian Dirtlump
Canadian Dirtlump's picture

The move here is to lash one of each of these fly hustlaz to a wall street / k street hustla and throw them over niagra falls and see which one dies first.

 

 

Fri, 06/13/2014 - 09:55 | 4852578 1stepcloser
1stepcloser's picture

https://www.youtube.com/watch?v=iq33nfTr3-Y

 

did this get rounded up?

Fri, 06/13/2014 - 09:56 | 4852581 Billy Sol Estes
Billy Sol Estes's picture

Maurice Fudge?

Fri, 06/13/2014 - 09:58 | 4852590 Sudden Debt
Sudden Debt's picture

THIS IS WHAT'S WRONG WITH AMERICA!!!

 

the government doesn't respect the small business owners who take initiative...

sure it's "illegal" and stuff... but so was weed once...

 

Fri, 06/13/2014 - 11:02 | 4852879 dracos_ghost
dracos_ghost's picture

Mo Money, Mo Money, Mo Money...

 

http://www.youtube.com/watch?v=P1XCf9gEu7E

Fri, 06/13/2014 - 09:57 | 4852591 The Internation...
Fri, 06/13/2014 - 09:59 | 4852592 Smegley Wanxalot
Smegley Wanxalot's picture

Small potatoes to pretend like they are cracking down.  Billions wasted on $1000 toilet seats for the MIC and money to Solyndra et al and all the pork in return for political donations ... will never be brought up on charges.

 

By the way ... is there any way to get those fucking newsinc videos to not auto start at full fucking volume?  I had to add a complete filter block for news inc to stop that shit.

Fri, 06/13/2014 - 10:01 | 4852613 roadhazard
roadhazard's picture

I'll take a small potato over no potato any day.

Fri, 06/13/2014 - 10:37 | 4852763 Citxmech
Citxmech's picture

That's what the justice department is counting on.

Fri, 06/13/2014 - 11:00 | 4852856 XitSam
XitSam's picture

Like when the DoJ targets veteran gun owners, but has given "assault weapons" to criminal gangs which kill government agents.

Fri, 06/13/2014 - 12:32 | 4853502 Tall Tom
Tall Tom's picture

Or do you mean like that the US Government gives NATO Weapons to al Qaeda so that they can kill the US Ambassador to Libya?

Fri, 06/13/2014 - 09:59 | 4852594 LetThemEatRand
LetThemEatRand's picture

Too bad they don't have the same success with prosecuting all the banker fraud that led to the mega $750B bank bailout.  Oh right, you have to make an attempt in order to have success.

Fri, 06/13/2014 - 11:31 | 4853051 Flakmeister
Flakmeister's picture

They all settled with the SEC without an admission of guilt....

The new MO, illegally loot then pay a fine corresponding to less than the sweet heart tax cut that W. gave you....

See Mozillo, aka The Tan Man...

Fri, 06/13/2014 - 09:58 | 4852595 Flakmeister
Flakmeister's picture

Yep...

As as big a fraud as GE paying zero corporate tax over the past 10 years....

Fri, 06/13/2014 - 09:59 | 4852598 Cangaroo.TNT
Cangaroo.TNT's picture

Downward revisions to Q2 GDP on deck?  Didn't Bernanke himself testify to congress not to pursue medicare fraud for the same reason?

Fri, 06/13/2014 - 09:59 | 4852600 Robot Traders Mom
Robot Traders Mom's picture

At this point, Amerika is just a cesspool of dishonesty, ignorance, and debt. Nothing surprises me anymore except for the gaggle of neoconservative fucktards that still run around waving flags and saying freedom isn't free...

www.TopTheNews.com

Fri, 06/13/2014 - 10:00 | 4852601 Robot Traders Mom
Robot Traders Mom's picture

Sorry, double post. Ignore this one. Fuck it, ignore them both. 

Fri, 06/13/2014 - 10:00 | 4852603 Dr. Engali
Dr. Engali's picture

What's the problem here? If it weren't for fraud we wouldn't have an eCONomy. Now give me $750 billion dollars or we will see tanks in the streets by morning.

Fri, 06/13/2014 - 10:12 | 4852664 Cangaroo.TNT
Cangaroo.TNT's picture

You are correct.  Bernanke said ANY reduction in spending would be hurtful to the "recovery."  Unless, of course, you spend more prosecuting the fraud than the fraud itself.

Fri, 06/13/2014 - 10:00 | 4852605 yellowsub
yellowsub's picture

A quick spot check of a month worth of actual inventory vs redemption would have stopped this a long time ago.

 

Fri, 06/13/2014 - 10:55 | 4852827 Postal
Postal's picture

Not necessarily: Local producers can setup to accept EBT at the farmers markets. How are you going to prove that I didn't grow and sell $5,000+ worth of fresh fruit and vegetables last week?

Fri, 06/13/2014 - 09:59 | 4852606 p00k1e
p00k1e's picture
MY EBT (NOW ON iTUNES) - By @MrEBT & @CaptnHook_Maine

 

https://www.youtube.com/watch?v=o64Fz-KW1Dk

Fri, 06/13/2014 - 10:00 | 4852607 pods
pods's picture

20 million? Prolly cost that much to investigate it.

pods

Fri, 06/13/2014 - 10:00 | 4852611 NOZZLE
NOZZLE's picture

Put them in striped prison uniforms, attach a 20lb black iron ball to one ankle and make them work it off in the fields.

Go back to direct food distribution, government cheese, flour, yeast, salt, dried utilti grade meat and all the depression apples they can eat. 

Fri, 06/13/2014 - 10:47 | 4852801 WillyGroper
WillyGroper's picture

Let's see...

Bain & GS are fined $100m for rigging. I'm sure with no admission of wrong doing.

Where shall they start with those 20lb black iron balls?

Fri, 06/13/2014 - 11:17 | 4852968 waterhorse
waterhorse's picture

I suggest they start with those in the FIRE sector who claim to do "God's work."

Fri, 06/13/2014 - 10:00 | 4852612 Ignatius
Ignatius's picture

I worked in LA in the late 70s for a guy who inherited probably the best liquor store location in the city.  He also inherited apartment buildings, etc..  Anyway, every Sunday he'd hire a guy to razor out the food coupons from the Sunday papers. People would complain that the coupon sections were missing in the papers they bought.  Then he'd send them into the coupon redemption centers for their cash value as if people had bought those items from his small liquor/grocery store.  And he was a millionaire.

Any system that can be gamed, will be.

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