6 Facing Charges in $2.5M Food Stamp Scam

Prosecutors say the four small stores caught the eye of the U.S. Department of Agriculture

Six people, including two Lawrence, Massachusetts, convenience store owners, have been arrested in what prosecutors say was a scam to defraud the food stamp program out of $2.5 million.

Prosecutors say the four small stores caught the eye of the U.S. Department of Agriculture, which oversees the federal food stamp program, because a majority of sales transactions were greater than $100.

Authorities say the store owners as well as several clerks allowed people with EBT cards to withdraw cash while the stores kept a substantial fee.

The owner of three stores was held on $500,000 bail after pleading not guilty to trafficking in EBT benefits, money laundering and larceny.

Investigators say during a three-year period, the man's stores brought in $2.19 million in food stamp revenue but spent only $300,000 on inventory.

Copyright AP - Associated Press
Contact Us