- San Francisco District Attorney Brooke Jenkins announced charges against 11 people in connection to a welfare fraud scheme. She said three separate fraud cases resulted in over $4 million in losses from SNAP.
- The cases involve multiple San Francisco businesses, including grocery stores in Chinatown.
- The fraudulent process involved a “runner” finding people willing to sell their benefits, then taking the cards to businesses where fake purchases were made.
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San Francisco District Attorney Brooke Jenkins announced charges against 11 individuals on Thursday, Feb. 27 involved in defrauding millions of dollars from the Supplemental Nutrition Assistance Program, known as SNAP. The fraud scheme exploited public funds meant to support low-income families and individuals in need of food assistance.
What did the scheme involve?
The investigation revealed multiple San Francisco businesses participated in the fraudulent activities, leading to over $4 million in defrauded benefits. SNAP, funded by local and federal governments, provides assistance to low-income individuals to purchase food.
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The first case targets the owners of three grocery stores in Chinatown. Prosecutors allege these business owners pocketed $3 million from the fraudulent scheme. Four people have been charged with conspiring to commit welfare fraud, grand theft and other felony offenses.
Two additional cases involve more than half a million dollars each, traced back to two different stores. In total, seven individuals are facing similar charges for their role in the fraud.
How did the defendants carry out the fraud?
According to Jenkins, the fraudulent transactions involved a “runner,” who would search the city for individuals willing to sell their benefits by simply saying the word “EBT.” Once a seller was found, the runner would take the card back to the store, where employees or store owners would generate fake purchases ranging between $100 and $300. The cardholder and the store would then split the proceeds 50/50.
Jenkins emphasized her office’s commitment to protecting public benefits.
“My office is committed to ensuring the integrity of public benefits: that they remain in the hands of recipients and are used for their intended purpose of providing food to needy community members,” Jenkins said in a statement.
[Kalé Carey]
THE SAN FRANCISCO DISTRICT ATTORNEY SAYS FUNDS MEANT TO FEED HUNGRY FAMILIES AND SUPPORT LOW INCOME AMERICANS WERE DEFRAUDED IN A WELFARE AND BENEFITS SCHEME.
ON THURSDAY, D-A BROOKE JENKINS ANNOUNCED CHARGES AGAINST ELEVEN INDIVIDUALS WHO POCKETED MORE THAN FOUR MILLION DOLLARS FROM THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM, KNOWN AS SNAP.
JENKINS SAYS IN A STATEMENT, “My office is committed to ensuring the integrity of public benefits: that they remain in the hands of recipients and are used for their intended purpose of providing food to needy community members.”
A COLLABORATION BETWEEN STATE AND FEDERAL AGENCIES–UNVEILED FIVE SAN FRANCISCO BUSINESSES IN THREE SEPARATE CRIMINAL CASES.
SNAP CARDS ARE FUNDED BY LOCAL AND FEDERAL GOVERNMENTS, PROVIDING PEOPLE IN NEED WITH MONEY TO PURCHASE FOOD AT THE STORE.
THE FIRST CASE TARGETS THE OWNERS OF THREE GROCERY STORES IN CHINATOWN. THE INVESTIGATION ALLEGES THEY MADE THREE MILLION DOLLARS THROUGH THE SCHEME. THE D-A. IS CHARGING FOUR PEOPLE WITH CONSPIRING TO COMMIT WELFARE FRAUD, GRAND THEFT AND OTHER FELONY OFFENSES.
THE OTHER TWO CASES INVOLVE MORE THAN HALF A MILLION DOLLARS EACH AT TWO DIFFERENT STORES, WITH SEVEN INDIVIDUALS FACING SIMILAR CHARGES.
IN A PRESS RELEASE, JENKINS SAYS A RUNNER WOULD GO THROUGH THE CITY, SAYING THE WORD ‘EBT’ UNTIL THEY FOUND SOMEONE WILLING TO SELL THEIR BENEFITS.
THE RUNNER WOULD THEN TAKE THE CARD BACK TO THE STORE, WHERE EITHER THE OWNERS OR EMPLOYEES CREATED FALSE PURCHASES BETWEEN 100 AND 300 DOLLARS TO MAKE IT LOOK LIKE THE CARD’S OWNER MADE A PURCHASE. THEY WOULD THEN SPLIT THE MONEY FIFTY-FIFTY WITH THE CARD HOLDER.
THE SAN FRANCISCO D-A’S OFFICE SAYS THAT WHILE EACH FRAUDULENT TRANSACTION WAS SMALL ON ITS OWN, THE SCHEME ADDED UP OVER TIME, RESULTING IN HUNDREDS OF THOUSANDS OF DOLLARS.
FOR STRAIGHT ARROW NEWS, I’M KALÉ CAREY
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