Politics
Massive Food Stamp Fraud Scheme Exposed by DOJ
"U.S. Department of Justice headquarters, August 12, 2006" is licensed under CC BY-SA 3.0 
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Clear Facts
- The Department of Justice charged six individuals, including a federal employee, in a $66 million food stamp fraud scheme.
- The scheme involved unauthorized EBT terminals and fraudulent USDA codes, orchestrated by a USDA employee.
- The defendants face charges of conspiracy to steal government funds, theft of government funds, and other related offenses.
In a significant blow to the integrity of federal assistance programs, the Department of Justice has charged six individuals, including a federal bureaucrat, in a massive food stamp fraud case. This alleged scheme, which reportedly siphoned off over $66 million from the Supplemental Nutrition Assistance Program (SNAP), highlights a troubling breach within the U.S. Department of Agriculture (USDA).
The accused, including USDA employee Arlasa Davis, allegedly manipulated the system through unauthorized Electronic Benefit Transfer (EBT) terminals. These terminals were strategically placed in unlicensed retail locations across the United States, with fraudulent codes provided by Davis, enabling the redemption of SNAP benefits at these stores.
According to the DOJ, the scheme dates back to 2019 and involved approximately 160 unauthorized EBT terminals. The operation, overseen by Michael Kehoe, along with his associates Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, and Emad Alrawashdeh, processed around $30 million in illegal transactions and submitted 200 fraudulent USDA applications.
Davis’s role was particularly egregious as she allegedly supplied false EBT numbers to an intermediary, who then sold this information to her co-conspirators. The DOJ press release states that Davis used her personal cellphone to facilitate this fraud.
In exchange for her betrayal of public trust, Davis reportedly received cash bribes disguised as “birthday gifts” or “flowers.” Her actions enabled the group to collect an additional $36 million, further exacerbating the total fraud amount.
U.S. Attorney Perry Carbone emphasized the gravity of the situation, stating, “Michael Kehoe and his co-conspirators misappropriated tens of millions of dollars in taxpayer funds meant to help low-income families put food on the table.” He added that Davis’s actions “undermined a program that vulnerable New Yorkers depend on for basic nutrition.”
The charges against the defendants include conspiracy to steal government funds, theft of government funds, and misappropriation of USDA benefits. Davis faces additional charges of conspiracy to commit bribery and conspiracy to commit honest services wire fraud.
Notably, Nawafleh, one of the defendants, fled the country while on bail and is allegedly in Jordan, according to the DOJ’s complaint. This case underscores the importance of vigilance and accountability within federal programs designed to aid the nation’s most vulnerable populations.
Let us know what you think, please share your thoughts in the comments below.
Maxx
May 31, 2025 at 10:35 am
DOGE should be made a permanent agency and should be tasked with investigating every singe Alphabet Agency and to include Congress itself with the full authority of the Executive Branch. It should be immune to all interference from the Judicial Branch which itself is full of many bad actors.
Marlene Ernst
May 31, 2025 at 11:56 am
which is amazing under a year ag0 I was j0bless in a h0rrible ec0n0my. I thank G0d every day I was blessed with these instructi0ns and n0w its my duty t0 pay it f0rward and share it with Every0ne
Go 0N My Pr0file
Mike Evans
May 31, 2025 at 11:21 am
No one should be allowed to get cash from government funded assistance food programs as it opens the door for fraud. This has also allowed individuals to use cash to buy alcohol and drugs instead of providing food for their families. If they want to get high, get a job and pay for it themselves. To the fraudsters, lock them up and, if they immigrated from another country…ship ’em back.