Food Stamp Fraud Uncovered

It is a case of food stamp fraud to the extreme.  Three men have already been indicted.  Now dozens more face charges of selling their food stamps for cash.  The News On 6's crime reporter Lori Fullbright reports on how the crime was committed.

Investigators say people would take their food stamp card to a convenience store.  The store would swipe it for an amount, for example $100, to make it look like food had been  purchased.  But, there was no purchase.  The person got $50 cash and the store pocketed the other $50.

Documents show the store did more than $800,000 in the fake transactions in three years taking taxpayer money.

The  A and Zee Quik Stop was the target of the food stamp trafficking investigation and  Zobair Baig was the owner.  He's pleaded guilty to two counts in federal court and has not been sentenced yet.

Two of his employees also pleaded guilty to the scheme and both received one year probation.

Even though a sign now says no food stamps accepted, agents say it was well-known the store would swipe food stamp cards for a given amount, give half that amount to the customer in cash and keep half for the store. 

The cards are only supposed to be used for food purchases.  The point of the program is to help feed struggling families.

Once investigators became suspicious of the sheer volume of food stamp transactions at the store, they sent undercover agents inside and they, too, were able to trade the government benefit for cash.  Investigators say hundreds, even thousands of customers participated in the scheme.

Dozens of them now face charges.

Charlotte Brown is one of them.  Records show she admitted cheating the system at least 12 times, which put more than $1,000 cash in her pocket.

Rhonda Pearson is another.  Records show she also confessed to trading her food stamps for cash at least 27 times at A and Zee Quik Stop.  Her take was nearly $1,100.   The store's take was nearly $2,200.

You might think the people guilty of this crime would lose their food stamps forever, but sources tell The News On 6 most will only get their food stamp privileges taken away for a year or two.  Meanwhile, they'll still be getting food stamps for their children, so what's really happening, is their food stamp check will drop by about $100 a month.