Federal authorities have identified nearly $42 million in alleged and proven food assistance fraud through a nationwide enforcement operation involving stolen benefit cards, fraudulent retailers and identity theft, with additional cases targeting agricultural assistance programs.
By yourNEWS Media Newsroom
Vice President JD Vance announced Wednesday, Oct. 21, that federal and state authorities had pursued enforcement actions against more than 40 defendants in cases involving nearly $42 million in Supplemental Nutrition Assistance Program fraud, expanding the Trump administration’s investigation into the misuse of federal benefits.
The coordinated operation, conducted between Sept. 1 and Oct. 21, involved the Justice Department’s National Fraud Enforcement Division, the Department of Agriculture, USDA’s Office of Inspector General, 13 U.S. attorneys’ offices and the Utah Attorney General’s Office. Investigators identified schemes involving nearly $45 million in intended losses across food assistance and other agricultural programs.
According to the Justice Department’s nationwide enforcement announcement, the cases involve a combination of criminal indictments, complaints, guilty pleas and sentencings. The agency emphasized that some defendants have been convicted or admitted wrongdoing, while allegations against others remain unresolved in court. <Cite ref=”turn562983search0″/>
The latest figures bring the total amount of SNAP fraud identified by Vance’s federal anti-fraud task force to approximately $641 million, according to administration estimates. That figure represents fraud identified through investigations and enforcement activity, not necessarily money recovered or criminal losses established by final judgments. <Cite ref=”turn562983search9″/>
Attorney General Todd Blanche said the operation targeted schemes that diverted assistance intended for households struggling to purchase food.
“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.
SNAP provides monthly grocery assistance to eligible low-income households through electronic benefit transfer cards, commonly called EBT cards. Participants can use the benefits at authorized retailers to purchase eligible food, but the program prohibits exchanging benefits for cash or unauthorized merchandise.
The enforcement operation identified several methods of alleged fraud, including stolen card information, false transactions at authorized food stores, fraudulent benefit applications and the resale of products purchased with stolen assistance.
The largest case announced Wednesday involves two men accused of operating a multimillion-dollar scheme through authorized food retailers in Chicago.
Federal prosecutors allege that Jorag Yaseen and Rami Kanaan processed thousands of electronic transactions using stolen SNAP account information belonging to recipients in Ohio and other states. The transactions allegedly appeared to involve legitimate food purchases, although prosecutors contend that no corresponding sales took place.
According to the indictment, the activity occurred between approximately February 2024 and April 2025 and resulted in an estimated $29.7 million in intended losses. Investigators allege that money was transferred into accounts controlled by the defendants and their associates, with some proceeds used to purchase automobiles for use or shipment overseas.
Yaseen and Kanaan face charges of conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering. The case is being prosecuted in the Southern District of Ohio because the alleged transactions involved Ohio SNAP accounts and interstate electronic communications.
Another major investigation centers on Georgia rapper and social media personality Mercedes New, known professionally as Shawty Dred, who was indicted Oct. 7 on charges of food stamp fraud, mail fraud, access device fraud and aggravated identity theft.
Authorities allege that New participated in a scheme involving more than 500 Georgia EBT cards and approximately $4.4 million in stolen benefits. Investigators identified telephone numbers associated with New that contacted Georgia’s automated SNAP system more than 9,000 times, accessing information connected to more than 350 accounts.
The investigation also examined transactions associated with Shawty Dred LLC, a previously authorized SNAP retailer in Atlanta. Authorities said approximately $635,000 in transactions were linked to the business during an earlier stage of the investigation.
New was arrested in Las Vegas on Oct. 13. The criminal charges remain allegations, and prosecutors must establish the government’s case in court.
In Oregon, federal authorities reported sentencing developments in an interstate operation that used stolen SNAP benefits to purchase infant formula and other food products for resale.
Ana Patricia Escalante, identified by prosecutors as the leader of a transportation crew involved in the conspiracy, was sentenced Sept. 9 to 27 months in federal prison and ordered to pay $2.4 million in restitution.
Court records showed that participants obtained EBT information through card-skimming devices and other methods before purchasing large quantities of merchandise from stores across Oregon, Washington, California and other states.
The goods were collected, stored and transported for resale through unauthorized markets. Commercial shipping records documented more than 124,000 pounds of infant formula moved from facilities associated with the conspiracy.
Escalante was among 17 defendants indicted in October 2024. Twelve defendants have now been sentenced, receiving a combined 157 months in prison and restitution orders.
Investigators said the thefts depleted benefits belonging to thousands of households, including families with children and older adults who depended on the assistance to purchase groceries.
Assistant Attorney General Colin McDonald, who leads the Justice Department’s National Fraud Enforcement Division, emphasized the consequences for recipients who discover their benefits have been stolen while attempting to buy food.
“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.
Additional prosecutions involve fraudulent applications submitted using stolen personal information.
In Michigan, Kirk Deshaun Woodley admitted participating in a conspiracy that used identifying information belonging to more than 650 individuals to obtain SNAP benefits. Prosecutors said the conspirators submitted hundreds of applications, directed benefit cards to addresses they controlled and either used the cards or distributed them for resale.
Woodley pleaded guilty Sept. 22 to conspiracy to commit wire fraud and aggravated identity theft. His co-conspirator, Chantel LaShawn Peavy, was sentenced Oct. 20 to 18 months in federal prison.
The case involved approximately $1.1 million in intended losses.
Separate investigations in Michigan and Ohio focused on retailers accused of exchanging food assistance benefits for cash or merchandise prohibited under SNAP rules.
In Lansing, Michigan, convenience store operator Mohinder Singh was charged with theft or conversion of public money and SNAP fraud. Prosecutors allege that he exchanged approximately 50 cents in cash for every dollar in benefits transferred by customers and permitted some recipients to use benefits to repay debts.
The indictment identifies approximately $1.09 million in intended losses.
In Euclid, Ohio, six defendants were charged in an alleged operation involving the exchange of SNAP benefits for cash, marijuana and other unauthorized products at a gas station convenience store. Investigators estimate that the activity involved more than $1 million in benefits over approximately two years.
Federal prosecutors also announced a Pennsylvania case involving allegations that four defendants exploited women with intellectual disabilities to obtain control over their Social Security and SNAP benefits.
The indictment alleges that the defendants manipulated vulnerable individuals into living with them, then used their personal information and financial assistance for personal gain. Charges include kidnapping, wire fraud, mail fraud, Social Security fraud, theft of government funds, SNAP fraud and transportation of individuals for illicit sexual activity.
The four defendants were arrested Oct. 14. Prosecutors estimate approximately $13,392 in intended SNAP losses and additional losses involving Social Security benefits.
Although the operation primarily focused on food assistance, authorities also included cases involving other USDA programs.
Florida farmer Mark Frisbie pleaded guilty Sept. 29 to submitting fraudulent federal crop-insurance claims. Investigators determined that between 2019 and 2024, Frisbie substantially understated the amount of agricultural production sold by his business.
According to the Justice Department, Frisbie admitted selling more than $6.8 million in bell peppers and tomatoes while reporting less than $800,000 in sales for crop-insurance purposes.
The false reporting resulted in approximately $1.75 million in insurance payments that the government otherwise would not have issued.
Frisbie also admitted wrongdoing involving the Coronavirus Food Assistance Program and Emergency Relief Program, which provided financial assistance to agricultural producers. He agreed to pay approximately $1.51 million in restitution to the Farm Service Agency in connection with those programs.
The case illustrates how the coordinated enforcement effort extended beyond SNAP into agricultural assistance administered through the Agriculture Department.
Administration officials have presented the investigation as part of a broader campaign to identify fraudulent transactions before benefits can be withdrawn or redirected.
According to figures released by Vance’s task force, more than 1,000 retailers have been permanently removed from SNAP, while nearly 5,000 others have faced suspensions and administrative fines totaling approximately $44 million.
Federal authorities also reported destroying more than 2,200 illegal point-of-sale devices and disabling over 2,000 compromised retailer authorization numbers.
Officials estimate those preventive measures blocked more than $5 billion in potential fraudulent transactions. That figure is an estimate of suspected future losses avoided, rather than an accounting of money already stolen or recovered.
The administration’s campaign also includes a new incentive program for individuals who provide information about suspected fraud.
President Donald Trump announced the initiative Tuesday, Oct. 20, establishing financial rewards for qualifying whistleblowers whose information leads to federal criminal charges.
Under the fraud whistleblower incentive program announced by the administration, eligible participants may receive discretionary payments ranging from $10,000 to $30,000. Additional compensation may be available through other federal reward programs, depending on the circumstances and applicable eligibility requirements.
The Justice Department described the program as an effort to encourage individuals with knowledge of fraudulent schemes to report information that investigators may otherwise struggle to obtain.
The latest enforcement announcement follows the creation of the National Fraud Enforcement Division in April 2026, which consolidated federal resources dedicated to identifying and prosecuting schemes involving taxpayer-supported programs.
The division works with federal prosecutors, inspectors general and state agencies to investigate fraud involving public assistance, agricultural benefits, tax programs and other government expenditures.
Agriculture Secretary Brooke Rollins said the government intends to continue pursuing individuals and businesses that exploit food assistance programs, while federal investigators emphasized the importance of safeguarding benefits for eligible recipients.
SNAP fraud investigations frequently involve two distinct forms of financial harm: the diversion of taxpayer-supported funds and the theft of benefits already assigned to individual households.
When criminals obtain recipients’ EBT information, families may discover that their monthly benefits have disappeared before they can purchase groceries. Replacing stolen benefits can involve administrative procedures and delays, leaving households without immediate access to assistance.
The financial impact can therefore extend beyond the amount obtained by the person committing the theft.
Wednesday’s announcement illustrates the range of schemes being investigated, from large-scale transactions involving authorized retailers to individual identity theft and organized resale operations.
The Justice Department has not established that every dollar included in the nearly $45 million total represents a completed theft. The figure combines alleged intended losses with proven losses from cases at different stages of the criminal justice process.
Similarly, the broader $641 million attributed to the administration’s anti-fraud efforts reflects identified fraud, not a final total of convictions or recovered taxpayer funds.
The operation remains active as prosecutors pursue the newly announced cases and agencies continue examining suspicious transactions.
Federal officials have indicated that additional enforcement actions may follow as investigators review retailer activity, compromised EBT accounts and suspected misuse of agricultural assistance.
For defendants facing pending criminal charges, the presumption of innocence remains in effect unless prosecutors prove their allegations beyond a reasonable doubt.
The nationwide effort underscores the administration’s emphasis on preventing benefit theft while pursuing criminal cases against individuals accused of exploiting programs intended to help low-income families and agricultural producers.
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