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Store Owner Sentenced and Ordered to Pay $2.88 Million in Restitution for SNAP 

Fraud—Florida

On August 9, 2017, in U.S. District Court, Middle District of Florida, a store owner was

sentenced to 33 months in prison and ordered to pay $2.88 million in restitution. The defendant 

operated a small convenience store authorized as a SNAP retailer. During a 4-year period, the 

store redeemed more than $5 million in SNAP benefits and exchanged cash for SNAP benefits 

on multiple occasions. The storeowner pled guilty to wire fraud.1

Defendants Sentenced and Ordered to Pay $18.8 Million in Restitution for Fraud in Export 

Program—Connecticut

On September 11, 2017, in U.S. District Court, District of Connecticut, joint and several 

restitution orders were issued for two defendants in a case involving a Foreign Agricultural 

Service (FAS) export credit program. The two defendants were ordered to pay $18.8 million in 

restitution, with $18.5 million payable to USDA and $305,700 payable to a private bank. FAS 

referred this matter to OIG for investigation following a partial audit of a business participating 

in the Export Credit Guarantee Program (GSM-102). Both defendants controlled numerous 

business entities registered as exporters in GSM-102. OIG’s investigation revealed that the 

defendants acquired copies of shipping documents from various sources and thereafter presented 

false and altered shipping documents to secure loans from U.S. banks. USDA’s loss exceeded

$18 million. A jury found the men guilty of charges pertaining to bank fraud and wire 

fraud. Previously, in June 2017, one defendant was sentenced to 15 months in prison and was 

ordered to forfeit $1.5 million to the United States. The second defendant was sentenced to 

5 months in prison, to be followed by 3 years of supervised release, including 5 months of home 

confinement. He was ordered to forfeit $63,500 to the United States.

Store Owner Sentenced and Ordered to Pay $1.24 Million for SNAP Fraud—Wisconsin

On September 6, 2017, in U.S. District Court, Eastern District of Wisconsin, a store owner was

sentenced to 15 months in prison and ordered to pay $1.24 million in restitution, jointly and 

severally, with his co-defendant son. The son was a previously disqualified owner. On 

September 7, 2017, a third defendant in the case, a former store employee, was sentenced to 

1.5 years in prison. OIG’s investigation determined that the store exchanged SNAP benefits for 

cash and/or ineligible items. The store owner, his son, and the third defendant pled guilty to 

 1 OIG conducted this investigation with the Orange County, Florida, Sheriff’s Office and the Department 

of Homeland Security’s (DHS) Homeland Security Investigations (HSI).

Office of Inspector General / U.S. Department of Agriculture

Investigations Bulletin

October 4, 2017
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charges related to wire fraud and/or SNAP fraud. The son has not yet been sentenced.2

Defendant Sentenced for Animal Fighting Violations—Ohio 

On August 21, 2017, in U.S. District Court, Southern District of Ohio, an individual was 

sentenced to six months in prison, 3 years post-release control, and a prohibition on 

possession/harboring any canines. The investigation determined that a criminal gang was raising 

American Pit Bull Terrier dogs and fighting them in Michigan and Ohio. One gang leader was 

identified as having an extensive criminal history, including Federal drug trafficking and dog 

fighting convictions in Ohio. Evidence seized via search warrants included 45 dogs, dog fighting 

tools, firearms, and narcotics. Further judicial proceedings in this case are pending.

Couple Sentenced and Ordered to Pay Over $2.4 Million in Monetary Penalties for SNAP 

Fraud—Florida

On August 2, 2017, in U.S. District Court, Middle District of Florida, a store owner was 

sentenced to 15 months in prison. Her husband was sentenced to 6.5 years in prison. Both were 

also ordered to pay $1.26 million in restitution, jointly and severally, to USDA. A money 

judgement for $1.19 million was ordered. The business redeemed SNAP benefits for 

approximately 2 years, until the owner, operators, recruiters, and others associated with the store 

were indicted for conspiracy to commit wire fraud. Over $1.2 million in SNAP benefits were 

redeemed at the delivery route business with over 2,100 SNAP-authorized households, despite 

the business having little to no merchandise offered for purchase. The owner pled guilty to 

conspiracy to commit wire fraud and her husband was found guilty in a jury trial of wire fraud 

charges. Further judicial proceedings in the case are pending.3

Defendant Sentenced for Lacey Act Violations Regarding Plant Smuggling—Oregon

On August 7, 2017, in U.S. District Court, District of Oregon, an individual was sentenced to six 

months of home confinement and 3 years of supervised release. The defendant engaged in 

smuggling commercial quantities of wild-harvested Nepenthes rajah plants from a supplier in 

Malaysia into the United States.4

 The imports were not properly labeled or declared, and they 

did not have phytosanitary certificates. The investigation revealed the defendant had received 

36 undeclared shipments of carnivorous plants from multiple sources in seven countries. OIG 

and U.S. Fish and Wildlife Service agents executed a Federal search warrant at his residence and 

seized over 215 plants. The defendant confessed to smuggling plants into the United States. 

USDA and Customs and Border Protection intercepted and destroyed other shipments that were 

en route to him. The defendant pled guilty to violating the Lacey Act.

 2 The Milwaukee County Sheriff’s Office and the Federal Bureau of Investigation (FBI) assisted in the 

investigation. 3 This case was jointly worked with members of the Jacksonville Electronic Benefit Transfer (EBT) Task 

Force, which includes the Jacksonville Sheriff’s Office, U.S. Secret Service, DHS–HSI, and the Florida 

Fish and Wildlife Conservation Commission. 

4 A plant subject to prohibitions on international trade due to conservation concerns.
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Meat Distributor Sentenced and Ordered to Pay $789,000 for SNAP Fraud—Kentucky

On August 24, 2017, in U.S. District Court, Western District of Kentucky, a meat distributor was 

sentenced to 37 months in prison and ordered to pay $789,000 in restitution. Over a six-year 

period, the defendant conspired with his former wife and, thereafter, his fiancée, to defraud the 

SNAP program. During the investigation, the defendant confirmed that from 2011–July 2016, 

the percentage of fraudulent SNAP redemptions at his business ranged from 70 to 100 percent. 

Further judicial proceedings in the case are pending.5

Defendants Sentenced and Ordered to Pay $395,000 for Scheme Involving Identity Theft 

and SNAP Fraud—Georgia

On August 3, 2017, in U.S. District Court, Northern District of Georgia, a store owner was 

sentenced to 45 months in prison, while his sister (and co-conspirator) was sentenced to six

months. The brother and sister were ordered to pay $395,000 in restitution, jointly and severally. 

Both pled guilty to wire and mail fraud charges. The brother was also convicted of aggravated 

identity theft, which resulted in an additional 2-year consecutive sentence. The defendants 

owned and operated two convenience stores in Georgia. They used stolen identities to apply for 

SNAP benefits, resulting in the Georgia Department of Human Services mailing hundreds of 

EBT cards to addresses the defendants controlled. Once the fraudulent SNAP cards were 

received, the defendants collected and swiped them at their convenience stores. Over $800,000

in SNAP payments were deposited in their store bank accounts. USDA and the Georgia 

Department of Human Services were able to link $395,000 of those funds to 321 fraudulent 

SNAP accounts.

Store Owner Sentenced and Ordered to Pay $408,000 in Restitution for Money Laundering 

and SNAP Fraud—Kentucky

On August 3, 2017, in U.S. District Court, Eastern District of Kentucky, a store owner was 

sentenced to 5.5 years in prison and was ordered to pay $408,000 in restitution. OIG’s 

investigation determined that the owner purchased EBT cards for half their value in the store or

used the EBT cards to shop at other establishments. The defendant was indicted on counts of 

conspiracy, food stamp fraud, and money laundering. After being released from custody, the 

defendant made threats to government witnesses and was arrested. The defendant was convicted 

in a jury trial on all six counts of the indictment.

 5 This case was worked as a joint investigation between OIG and the FBI.