Click Here to View the Original U.S. Department of Justice (DOJ) Press Release
13 U.S. Attorney’s Offices and the Utah Attorney General’s Office join federal partners in actions against more than 40 alleged fraudsters
The Justice Department’s National Fraud Enforcement Division (Fraud Division), the Department of Agriculture (USDA), and the USDA Office of Inspector General today announced a nationwide series of enforcement actions targeting fraud involving the Supplemental Nutrition Assistance Program (SNAP) and related USDA programs.
Between Sept. 1, and today, the Fraud Division, 13 U.S. Attorneys’ Offices, and the Utah Attorney General’s Office conducted the Department’s first National USDA Benefits and Program Fraud Enforcement Surge. This coordinated effort resulted in actions against more than 40 defendants whose alleged or proven schemes caused nearly $45 million in intended losses to the federal government. Nearly $42 million of that amount involved fraud against SNAP benefits, which provide monthly food assistance to low-income individuals and families. Another case involved attempted fraud against a USDA crop‑insurance program designed to help farmers recover from covered losses.
“These schemes siphoned millions from taxpayers and robbed struggling Americans of the benefits they depend on so fraudsters could use them for their own selfish purposes,” said Attorney General Todd Blanche. “Through our partnership with the Department of Agriculture, this nationwide surge exposed and disrupted criminal networks that targeted vulnerable American families. The Department of Justice will continue working to root out fraud in every federal agency and program.”
“Every instance of SNAP fraud has two victims: families in dire need and taxpayers. Today, we are reminding fraudsters that we will find you and prosecute you to the fullest extent of the law,” said Secretary Brooke Rollins of USDA. “Thank you to USDA’s OIG and our state and federal partners for working with us to bring justice to families harmed by criminals. Under the Trump Administration, food stamp fraud ends now.”
“The human cost of these fraud schemes is measured not in spreadsheets, but in the panic of a mother whose card is declined and the hunger her children endure because someone hijacked their benefits,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “These schemes inflict real harm on real American families, and they erode the trust taxpayers place in programs designed to keep Americans fed. That is why the Fraud Division is acting with urgency, not just to prosecute fraud, but to protect the people who depend on these lifelines.”
“SNAP fraud despicably robs from low-income Americans that rely on the program for food assistance and diverts taxpayer funds to line the pockets of fraudsters and bankroll other criminal activities like guns and drugs that make American communities less safe,” said Inspector General John Walk of USDA OIG. “No more! USDA OIG is committed to support Vice President Vance’s leadership to disrupt fraud schemes and send criminals straight to prison. I am honored to stand with Vice President Vance today and grateful for our special agents whose work as part of this nationwide surge brought significant law enforcement actions against fraudsters in dozens of cases across the country. This surge is only the beginning. USDA OIG will continue to unite behind our partners in the whole-of-government fight to eliminate fraud and hold fraudsters to account.”
“SNAP benefit fraud steals from American taxpayers and from the families who depend on these benefits to put food on the table”, said Acting Executive Associate Director John A. Condon of the Homeland Security Investigations (HSI). “Homeland Security Investigations is working closely with our law enforcement and prosecutorial partners to identify and dismantle the criminal networks that use skimming devices, stolen identities, fraudulent retailers, and other schemes to exploit this critical program. Those who profit by stealing public benefits should know that HSI will pursue the evidence, follow the money, and hold them accountable.”
SNAP fraud harms vulnerable families who rely on these benefits to buy food. One recent victim, a mother whose electronic benefit transfer (EBT) card was compromised, discovered her benefits had been stolen only when her card was declined at a grocery store. She was forced to take out loans to feed her children and reported significant anxiety and depression as a result.
View the Press Release photo here.
Mother of four reports being forced to take out a loan after her EBT card was compromised.
Notable cases
- [Indictment] United States v. Jorag Yaseen and Rami Kanaan, Southern District of Ohio Case No. 3:26-cr-00099-TMR — $29.7 million intended Loss
- A federal grand jury indicted Jorag Yaseen and Rami Kanaan on charges related to an alleged scheme to defraud the Supplemental Nutrition Assistance Program (SNAP) through fraudulent electronic benefit transfer (EBT) transactions. According to the indictment, Yaseen and Kanaan operated approved retail food stores in Chicago, Illinois. Prosecutors allege that, between approximately February 2024 and April 2025, the defendants and others processed thousands of transactions using stolen Ohio and other state EBT account information. The indictment alleges that the transactions falsely appeared to represent legitimate purchases of authorized food products, even though no bona fide sales occurred. The alleged transactions generated interstate wire communications between Illinois and servers associated with Ohio’s SNAP administration. Prosecutors further allege that the scheme caused state administrators to transfer millions of dollars in federal funds to accounts controlled by the defendants and others, resulting in an estimated loss of approximately $29.7 million to the United States. The indictment also alleges that some of the proceeds were used to purchase automobiles for use and shipment overseas. Yaseen and Kanaan are charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The indictment identifies three alleged interstate wire transactions on March 4, 2024, involving a stolen Ohio EBT card associated with a Greene County resident and totaling $1,243.46.
Prosecuted by Assistant U.S. Attorneys/Fraud Division Deputy Chiefs Ryan Saunders and Brian McDonough for the Southern District of Ohio.
- [Indictment] United States v. Mercedes New, Northern District of Georgia (26-CR-473) — $4.4 million intended loss
- On October 7, a federal grand jury indicted rapper and social media influencer Mercedes New, otherwise known as Shawty Dred, for criminal food stamp fraud, mail fraud, access device fraud, and aggravated identity theft. The investigation began in 2025, when the Georgia Department of Human Services Office of Inspector General determined there was an attack on the interactive voice response (IVR) system used by SNAP benefit recipients. Specifically, they determined that phone numbers associated with Mercedes New contacted the SNAP EBT IVR over 9,000 times, accessing over 350 separate SNAP accounts. The transaction total for SNAP benefit cards connected to Mercedes New at that time were estimated at $1.8 million. Of that $1.8 million, GADHS-OIG determined that approximately $635,000 were transactions at Shawty Dred LLC in Atlanta, GA, a previously SNAP authorized retail store owned by Mercedes New. Additionally, in November 2025, Mercedes New was arrested at Walmart in East Point, GA for soliciting customers to buy SNAP EBT cards from him. At the time of his arrest, East Point Police Department seized 14 Georgia EBT cards. These 14 EBT cards accounted for over 350 of the calls made to the IVR from the same number listed as the store phone number for Shawty Dred LLC in his SNAP retailer application. Ultimately, the investigation discovered that more than 500 Georgia EBT cards are linked to New, with an estimated fraud loss amount of $4.4 million in stolen benefits. New was arrested in Las Vegas, NV on October 13.
Prosecuted by Assistant U.S. Attorney Tracia King for the Northern District of Georgia with assistance from District Fraud Counsel AOR: Assistant U.S. Attorney Nicholas Joy for the Northern District of Georgia.
- [Guilty Plea] United States v. Mark Frisbie, Middle District of Florida (No. 2:26-cr-00251-SPC-NPM) — $3.2 million actual loss
- On September 29, defendant Mark Frisbie pleaded guilty to submitting a false crop-insurance claim. As part of his guilty plea, Frisbie admitted that — from 2019 to 2024 — he knowingly signed and certified numerous false crop-insurance claims that underreported his actual crop production. The underreporting of Frisbie’s actual crop production caused the federal government to pay more than $1.7 million in crop-insurance indemnities that it otherwise would not have paid. As part of his guilty plea, Frisbie acknowledged that he actually grew and sold more than $6.8 million bell peppers and tomatoes during relevant times — but that he only reported (for crop-insurance purposes) sales of less than $800,000. In other words, Frisbie fraudulently concealed more than $6 million in crop sales. Based on his false representations in his crop-insurance claims, Frisbie caused the federal government to pay $1,748,408 in crop insurance indemnities that it otherwise would not have paid. In addition to admitting to submitting false crop-insurance claims, Frisbie admitted to defrauding two other federal government programs designed to benefit farmers — namely, the Coronavirus Food Assistance Program and the Emergency Relief Program. Frisbie has agreed to pay $1,506,992.26 in restitution to the Farm Service Agency based on his fraud against these taxpayer-funded farmer-relief programs.
Prosecuted by Assistant U.S. Attorneys Chelsey Hanson and Simon Eth for the Middle District of Florida, with assistance from. District Fraud Counsel AOR: Assistant U.S. Attorney Jay Trezevant for the Middle District of Florida.
- [Sentencing]: United States v. Dumitru, et al., District of Oregon (No. 3:24-cr-00383-AN) — $4.4 million intended loss
- On September 9, Ana Patricia Escalante, the leader of a transport crew that crisscrossed the country collecting and shipping infant formula purchased with stolen food benefits, was sentenced to 27 months in federal prison and ordered to pay $2.4 million in restitution. Escalante was one of 17 defendants indicted in Oregon in October 2024 in connection with an interstate conspiracy involving more than $2.4 million in stolen SNAP benefits. To date, 12 defendants have been sentenced in the case, receiving a combined 157 months in prison and orders to pay full restitution. According to court documents, members of the conspiracy obtained SNAP account information through skimming devices and other means and used the stolen benefits to purchase massive quantities of infant formula and other food products from stores in Oregon, Washington, California, and other states. Members of the theft crew, most of whom were Romanian nationals unlawfully present in the United States, sold fraudulently obtained merchandise to Escalante and her transport crew. The scheme depleted benefits belonging to thousands of low-income families nationwide, leaving victims—including parents and seniors—unable to purchase groceries. Escalante’s transport crew collected the merchandise, stockpiled it at residences and storage units, and transported it in private vehicles and through commercial carriers for resale on the black market. Commercial shipping records documented more than 124,000 pounds of infant formula shipped from the conspiracy’s storage facilities, with an estimated value exceeding $2.4 million.
Prosecuted by Assistant U.S. Attorneys Nicholas Meyers and Geoff Garrow for the District of Oregon with assistance from. District Fraud Counsel AOR: Assistant U.S. Attorney Nicholas Meyers for the District of Oregon.
- [Guilty Plea + Sentencing]: United States v. Kirk Deshaun Woodley and United States v. Chantel LaShawn Peavy, Eastern District of Michigan (Nos. 2:26-cr-20191 and 2:25-cr-20834) —$1.1. million in intended loss
- Kirk Deshaun Woodley conspired with Chantel LaShawn Peavy and others to submit hundreds of fraudulent applications for SNAP benefits by obtaining and using the names and personal identifying information of more than 650 individual victims. Once the applications were approved, the funds were loaded on to EBT cards, and the cards were mailed to addresses controlled by Woodley and Peavy, who then either sold the cards to other co-conspirators for resale or accessed the SNAP benefits themselves by making purchases with the cards.
Woodley pleaded guilty to Conspiracy to Commit Wire Fraud and Aggravated Identity Theft on September 22; Peavy was sentenced on the conspiracy to 18 months imprisonment on October 20.
Prosecuted by Assistant U.S. Attorney Corinne M. Lambert for the Eastern District of Michigan with assistance from . District Fraud Counsel AOR: Assistant U.S. Attorney Jason Norwood for the Eastern District of Michigan.
- [Indictment] United States v. Mohinder Singh, Western District of Michigan (No. 1:26-cr-00094-JMB) — $1,089,949 in intended loss
- Mohinder Singh, the owner/operator of a convenience store in Lansing, Michigan, was charged by a grand jury with theft or conversion of public money and nine counts of SNAP benefits fraud. The indictment alleges that Singh unlawfully exchanged cash and other ineligible items for SNAP benefits with his customers and allowed some customers to use SNAP benefits to pay debts owed to him. Singh typically provided SNAP recipients with an exchange rate of $0.50 in U.S. currency per $1 of SNAP benefits transferred, according to the indictment. Additionally, it is alleged that Singh charged a fee payable in SNAP benefits after extending credit to some of his customers.
Prosecuted by Assistant U.S. Attorney/District Fraud Counsel Christopher O'Connor for the Western District of Michigan.
- [Complaint] United States v. Sqar Qahtan et al., Northern District of Ohio (No. 1:26-mj-3194-RJS) — $1 million in intended loss
- On Oct. 6, Sqar Qahtan, 31, Baligh Naji, 34, Ahmed Al Hamami, 36, all citizens of Yemen residing in Euclid, Ohio, along with Mohsin Mohsin, 28, of Syracuse, New York; Mariah Hatcher, 30, of Euclid, Ohio, and Almotawakil Nassr, 29, of Detroit, Michigan, were charged in criminal complaints with SNAP Benefits Fraud, Wire Fraud, and Conspiracy to Commit Wire Fraud. For approximately two years, the defendants allegedly operated a conspiracy to exchange Ohio SNAP benefit cards for cash, marijuana, and other non-SNAP items while employed at a gas station convenience store in Euclid, Ohio. The larger conspiracy is estimated to have fraudulently obtained more than $1 million in food stamp benefits.
Prosecuted by Assistant U.S. Attorney Erica Barnhill for the Northern District of Ohio with assistance from District Fraud Counsel AOR: Deputy Chief Assistant U.S. Attorney Brian McDonough for the Northern District of Ohio.
- [Complaint] United States v. Rodolfo Armando Fernandez Guzman, District of Massachusetts (No. 1:26-mj-03349-JDH) — $22,402 in intended loss
- As alleged in charging documents, Fernandez Guzman is a Dominican national that stole the identity of a U.S. citizen to fraudulently obtain $22,402 in SNAP benefits, $98,481.25 in MassHealth benefits, and $45,596 in Section 8 housing benefits. In addition, Fernandez Guzman allegedly obtained two state ID cards, a learner's permit, and three driver's licenses in Massachusetts and Arizona using the stolen identity. The Complaint further alleges that Fernandez Guzman was convicted of two felonies in Arizona and received prison sentences under the victim's identity.
View the Press Release photo here.
Fernandez Guzman's learner's permit and three driver's licenses in Massachusetts and Arizona using a stolen identity.
Prosecuted by Assistant U.S. Attorney James Nagelberg for the District of Massachusetts. District Fraud Counsel AOR: Assistant U.S. Attorney James Nagelberg District of Massachusetts.
- [Indictment] United States v. Michael Swanson, et al., Eastern District of Pennsylvania — $13,392 in intended loss
- On October 8, a 39-count indictment of Michael Swanson, Nicole Swanson, David Dziobczynski and Caitlyn Eusden Swanson, was filed. On October 14, all three Swansons and Dziobczynski were arrested. Charges include Wire Fraud, Mail Fraud, Kidnapping, Transportation of Individuals for Illicit Sexual Activity, False Statements, Social Security Fraud, Theft of Government Funds, SNAP Fraud and Cyberstalking. The Swansons groomed, lured, and enticed intellectually disabled women to live with them for the purpose of controlling their Social Security and SNAP benefits. Michael Swanson also engaged in sexual acts with the women, to which they lacked the capacity to consent. The estimated fraud loss is $13,392 to SNAP and $27,227 to the Social Security Administration. All defendants were arrested on October 14.
Prosecuted by Assistant U.S. Attorney Megan Curran for the Eastern District of Pennsylvania with assistance from. District Fraud Counsel AOR: Assistant U.S. Attorney Meghan Bisio for the Eastern District of Pennsylvania.
- [Information] State of Utah v. Besmulla Yaqoobi — $5,994.89 in intended loss
- In 2022, Defendant co-owned a store, Sahara Market, located in Taylorsville, Utah. On November 8, 2022, Defendant’s co-owner signed a U.S. Department of Agriculture Food and Nutritional Services (FNS) contract on behalf of the Sahara Market. The FNS Contract specifically stated that it was prohibited to trade cash in exchange for SNAP benefits and doing so would be a violation of SNAP regulations. The USDA-OIG began a joint investigation with the Taylorsville Police Department into the Sahara Market in 2023. Between January 2024 and April 2024, surveillance was conducted on the Sahara Market. Surveillance revealed 15-20 individuals that entered the market, made large EBT transactions, and subsequently exited the market shortly after with little to no items. Transactions from these instances totaled $5,429.89. Similar transactions occurred on July 8, 2024, and Aug. 8, 2024.
Prosecuted by the Utah Attorney General’s office.
Law Enforcement Partners Participating in the Surge Event:
USDA OIG, U.S. Department of Agriculture Office of Inspector General, FBI, HSI, Defense Criminal Investigative Service, Federal Bureau of Investigation, Homeland Security Investigations, Housing and Urban Development Office of Inspector General, Internal Revenue Service – Criminal Investigation, Small Business Administration Office of Inspector General, Social Security Administration Office of Inspector General, U.S. Postal Inspection Service, U.S. Secret Service, Georgia Department of Human Services Office of Inspector General, Georgia Office of State Inspector General, Missouri Department of Social Services, Nevada Office of the Attorney General, Ohio Investigative Unit, Oklahoma Department of Human Services Office of Inspector General, Utah Attorney General’s Office, Dearborn Police Department, Euclid Police Department, Taylorsville Police Department, and Tulsa Police Department.
U.S. Attorneys’ Office Participation in the Surge Event:
Eastern District of Arkansas, Middle District of Florida, Northern District of Georgia, Northern District of Iowa, District of Maryland, Eastern District of Michigan, Western District of Michigan, Eastern District of Missouri, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, District of Oregon, and Eastern District of Pennsylvania.
On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.