Dozens indicted in Georgia food stamp fraud

ATLANTA Tue Jun 10, 2014 7:42pm EDT

Related Topics

ATLANTA (Reuters) - Federal prosecutors in Georgia announced indictments on Tuesday against 88 people in one of the country's largest food-stamp fraud cases.

Fifty-four defendants were accused in an alleged scheme to open grocery stores in Georgia that would buy food stamps and cash vouchers at deep discounts, which the stores would then redeem with the federal government at full value.

The defendants also allegedly conspired to launder $18 million in profit from the plot.

An additional 34 people were indicted on charges they sold their benefits for cash.

The government is also seeking the forfeiture of $20 million from the defendants and other assets including a 2008 Land Rover and a 2008 Mercedes Benz.

Both the voucher and food stamp programs are administered by the U.S. Department of Agriculture and funded with federal tax dollars, prosecutors said.

The vouchers provide infant formula, fresh fruits, vegetables and other foods to low-income pregnant and postpartum women and their children.

"The government alleges that the defendants stole taxpayer-funded benefits intended to feed the most needy families and children in our communities," U.S. Attorney for the Southern District of Georgia Edward Tarver said in a statement.

(Editing by David Adams, Peter Cooney and Cynthia Osterman)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
DavidinWY wrote:
Yay! This is getting a point across to all who TAKE from the rich, and GIVE to the rich. Want to abuse the programs that make up the social safety net? Can you say “PRISON” you mf’s! There are 1,000′s of starving kids that are one meal a day away from not eating one meal a day, right here, in America, and you want to drop it in the garbage right in from of them like they did in Utah (sorry Utah, no offense)? I want to see waste, fraud and abuse to affect someone other then the most vulnerable. I was shocked that Governor Scott (Florida) got away with ripping off Medicare for millions and STILL GOT ELECTED, is there no shame?

Jun 11, 2014 2:52am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.