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FDLE Arrests Food Stamp Traffickers in Massive Statewide Sweep
March 18, 2010
The Florida Department of Law Enforcement (FDLE) today announced the arrest of 21 store owners and clerks in an intensive 10-week, statewide undercover operation to combat public assistance fraud. “Operation Cash Exchange” targeted retailers illegally providing cash from government issued Electronic Benefit Transfer (EBT) cards which are authorized only for the purchase of approved food staples. The operation began January 7 and culminated with the execution of search and arrest warrants at 15 stores in 10 cities on yesterday.
The arrests included Gregory J. Greene, 33, and Charles T. Greene, 61, of Greene’s Produce in Pensacola. Both have been released from the Escambia County Jail on bond.
FDLE says the Greenes would process electronic food stamp cards for cash, keeping half for themselves and giving half to customers. During one visit by FDLE to the store, an undercover agent told Charles Greene that she needed rent money. Greene allegedly process a food stamp transaction, giving the undercover officer half of the money.
“These stores were trafficking in tax-payer dollars,” said Commissioner Gerald Bailey. “Taking cash from the food stamp program is a felony, and we rounded up retailers who were running this scam as a part of their daily routine.”
During the operation, undercover operatives visited convenience stores, small grocery markets and gas stations and used food stamp benefits on undercover EBT cards to acquire cash and other items ineligible for purchase. Store owners and clerks rang through a transaction that indicated a food staple purchase, but then provided a portion of the transaction amount back to the undercover operative in the form of cash and retained a portion for themselves. In most cases, few or no food items were purchased.
In addition to the cash transactions, stores also allowed the card to be used to purchase prohibited items such as alcohol and cigarettes, subsequently avoiding paying taxes on those items. In two stores, the undercover operative successfully purchased scratch-off lottery tickets. In one Central Florida store, an undercover operative used the card to purchase a small quantity of the prescription pain killer Oxycodone.
According to the United States Department of Agriculture (USDA) which administers the federal food stamp program, the 15 stores targeted during the operation have committed an estimated $3.5 million in food stamp fraud over the last 12 months. More than $10,000 in cash exchanges occurred during the operation.
“At a time when more Floridians than ever need our help, those who steal from this critical program are stealing from the 2.5 million people in this state who are in legitimate need of food stamps,” said Department of Children and Families Secretary George Sheldon. “I applaud FDLE’s aggressive efforts to punish this especially heinous form of fraud. Such arrests will ensure that honest Floridians who need a helping hand receive that assistance.”
Additional arrests are expected. In addition to state charges, the store owners may face federal penalties by the USDA for violating food stamp program guidelines. These penalties may include fines, temporary or permanent disqualification, and forfeiture of property.
Stores that sold lottery tickets and unauthorized items will be referred to the Florida Department of Lottery and the Florida Department of Revenue for further action.
FDLE will soon begin Phase II of the operation that will target actual public assistance recipients who illegally obtain cash through food stamp benefits on EBT cards.
The federal food stamp program is known as the Supplemental Nutrition Assistance Program (SNAP). Paper food stamps are no longer issued; instead, benefits are awarded in the form of credit on EBT cards. The USDA establishes the criteria for authorized food purchases, determines which stores are authorized to accept food stamp benefits, and has the authority to administer sanctions to stores violating program guidelines. The Department of Children and Families determines SNAP eligibility and allotments and distributes benefits to individuals. FDLE’s Public Assistance Fraud Program investigates misuse and abuse in the state’s public assistance programs.
Comments
16 Responses to “FDLE Arrests Food Stamp Traffickers in Massive Statewide Sweep”
Lulu:
Children 21 and under living with a parent have to have the parents included. Your daughter and her children can apply as a seperate group when she turns 22.
T,
Tried that and they wanted to get her on fraud charges saying she didn’t provide them with all the information.
LULU, you can get around that by not saying that you buy and cook food together.
She need’s to state that she buys her and her childrens food seperate from You.
And my daughters trying to get food stamps for her 2 children but since she is 21 and lives with me “I” make too much money. Figure that one. These food stamps are for the children whose mother doesn’t work so why do they need to use MY income,
Ol soldier.. The person trying to sell the roast isn’t breaking a law at that point that you were approached. Now as for the fraud with EBT cards call the sheriff’s dept.
Good job FDLE – now if they could find a way to crack down on people using those cards and running out the store to resell the product at half value to get cash for drugs or booze. Had a fellow approach me outside a seafood store with a beef roast he just bought down the street, and he was willing to sell that $30 roast for $10…who can you call in such a case? I just shook my head and walked away.
Clearly there is more fraud going on with all sides with this program that is wasting our tax dollars. And tax dollars gone from the state budget are gone forever.
Although this is amaizing , this type of scam has been going on for years. Several years ago there were some people receiving public assistance would sell their “food nutritional product” , for example liquid Ensure & Baby formula, at the local flea market on T street in Pensacola. Also, medical devices, such as wheelchairs, walker would be sold or swapped for pennies on the dollar.
Everyone one getting help isn’t bad. There are those that lack character! It is behavior like this that hurts those people who really need public assistance.
to MWM65 – you are right honest people don’t get help, we just work and try to make ends meet and sacrifice where we need to…. so much for the childhood lessons about cheaters never win Etc. they seem to always get the breaks…..
I know folks who work and make good money,, under the table and collect benifits like EBT and florida kids insurance. this is so wrong, how do you report this???
wrong is wrong, if they want to sell their stamp or card money for half of the face value to get cash they should just get a job! even minimum wage would be about that, right? I am tierd of paying my taxes and busting my backside so some deadbeat dirtbag can sell their assistance! I hope all of these folks get what is coming and I hope they go after the ones selling the cards, etc.
Now go after those that “sell” their “government assistance” to the people…I personally had someone show up at my home (byrneville) and try to sell me their ebt balance for 20 cents on the dollar…I told them that what they were doing was illegal and they responded by saying, “Really?!?!?!?”
(JOKE) (JOKE)
Such arrests will ensure that honest Floridians who need a helping hand receive that assistance.” Who are they kidding the honest don”t get help!!!!!
Talk about FRAUD ; now if we could get the Department of Children and Families
employees investigated , we would see a very long list of names.
What in the world were these store owners thinking? Did they actually think they would get away with this type fraud? Good job FDLE…
Times are so hard and people are doing things they know is wrong but everyone is trying to make ends meet. The people that sell these coupons for cash wants nothing more than a pack of cigarettes or a drug hit. There will always be the ones that spoil all good intentions for selfish reasons.
Oh…. SNAP!!!
Bet they didn’t see this one coming.
dont really think it was worth it.