Feds Raid Retailers in Food Stamp Fraud Sweep

(KNSI) — Nearly two dozen retailers in Minnesota were raided Thursday as part of an ongoing initiative targeting the Supplemental Nutrition Assistance Program.

Special agents from the U.S. Department of Agriculture Office of Inspector General and Homeland Security Investigations executed criminal search warrants as part of Operation Cold SNAP. The agencies worked with the USDA’s Food and Nutrition Service and the U.S. Attorney’s Office to identify authorized SNAP retailers accused of fraud.

In addition to executing warrants, law enforcement agents served 20 separate retailers with formal notices of alleged program violations, including SNAP trafficking. SNAP trafficking is a crime that involves retailers exchanging SNAP benefits for cash or other ineligible items.

If the accusations are proven, the retailers could be removed from the program or subjected to other penalties. Evidence seized during the searches was referred to federal prosecutors.

Afterward, USDA Inspector General John Walk said, “Fraudulent SNAP retailers steal from victims that include children who rely on federal nutrition assistance and dishonor the charity of American taxpayers who fund the assistance. OIG will continue to work hand-in-hand with federal law enforcement partners and agencies across the government in the war on fraud and hold criminals to account.”

SNAP fraud penalties include permanent disqualification from the program, fines up to $250,000, and up to 20 years in prison, particularly for selling benefits.

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