Showing posts with label food stamp fraud. Show all posts
Showing posts with label food stamp fraud. Show all posts

Monday, August 4, 2014

Yet Another Food Stamp Fraud Conviction

Last week in Texas, two men received sentences for food stamp fraud.  Chief US District Court Judge Sidney Fitzwater passed sentence on Kamardeen Ogunleye and Robert Gordon. Both received 27 months in prison and were ordered to pay $1.9 million in restitution.

According to the Department of Justice, between March 2010 and September 2013, the owners of the KSO Dollar Mart in Dallas purchased food stamp benefits for fifty cents on the dollar and laundered the proceeds through their store. They defrauded taxpayers of over $2 million in benefits meant for the poor.

The Justice Department's statement implied that the fraud may have been one of the main sources of revenue for the KSO Dollar Mart.  The statement said that the store "offered very few food and beverage items to its customers."

This comes on the heels of a bust of 54 individuals accused of defrauding the food stamp program of $18 million in Georgia using a similar tactic.

The food stamp program lost over $2 billion in fraud in 2012.

Wednesday, June 11, 2014

Inspector General Report Makes Mockery of Jon Stewart, Salon's Mockery of Fox News

Fox News is often a left wing whipping boy.  Last spring, the network reported stories of "widespread" fraud and abuse involving the food stamp program.  Turns out, according to a recent Inspector General's report, Fox had the issue right.

Jon Stewart used the report to bash Fox News, saying for example "We read the chain emails you grandma gets in her inbox out loud like they were true."

Salon piled on. They described Stewart's act as "castigating the right wing propaganda shop" for repeating stories "you hear" about fraud and abuse.

The Department of Justice successfully prosecuted a Camden, New Jersey man for stealing over $2.5 million from the SNAP program. From recipients, he purchased benefits from customers for .50 cents on the dollar, then deposited the benefits as full purchases.

This case has been ongoing since May 2013, well before the Jon Stewart rant and Salon echo.

On the heels of this announcement came reports of the largest food stamp bust in history.  Five Georgians, according to the US Attorney's office, "canvassed low income neighborhoods and solicited WIC (a program to help parents buy nutritious food for expecting mothers and small children) and food stamp participants to illegally exchange their benefits not for food, but for cash."

The conspirators allegedly netted $18 million in the scheme.

Despite left wing pontificating, food stamp abuse is alive and well.