USDA Employee and Five Associates Charged in Shocking Multimillion-Dollar Food Stamp Fraud and Bribery Scandal

The FBI recently announced a major fraud and bribery case linked to the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. Six individuals, including a USDA employee, have been charged in connection with this scheme, which allegedly involved over $66 million in unauthorized transactions.

This case stands as one of the largest food stamp frauds in U.S. history. The accused include Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh, and Arlasa Davis, a USDA employee. Davis faces additional charges for bribery and fraud.

SNAP helps low-income families purchase food using Electronic Benefit Transfer (EBT) cards. These cards work like debit cards and are used in stores that are licensed by the USDA. When a cardholder makes a purchase, the funds are deducted from their account and transferred to the store’s bank account.

Michael Kehoe is accused of creating a network that supplied around 160 unauthorized EBT terminals to various stores in New York, generating over $30 million in illegal transactions. He and his co-defendants allegedly submitted nearly 200 fraudulent USDA applications to secure these terminals for ineligible businesses, such as smoke shops.

What makes this case especially troubling is the involvement of Arlasa Davis. As a USDA employee in the division that identifies SNAP fraud, she had access to vital federal systems. It’s alleged that she sold EBT license numbers which facilitated approximately $36 million in fraudulent SNAP redemptions. In exchange for her cooperation, Davis accepted bribes disguised as “birthday gifts” and “flowers.”

Each defendant faces serious charges, including conspiracy to steal government funds and misappropriation of USDA benefits, with potential sentences ranging from five years to 20 years in prison. The maximum sentences are outlined by Congress, but the actual punishment will be determined by a judge.

Fraud cases like this raise concerns about the integrity of assistance programs designed to help those in need. As public trust in SNAP is crucial, such breaches can undermine confidence among eligible recipients. According to a recent survey, 57% of Americans believe that fraud is a major problem in government assistance programs. Addressing these issues is vital not only for financial accountability but also for the success of social support systems.

As this case unfolds, it will be essential to follow the legal proceedings to ensure justice is served and to restore faith in programs that play a critical role in supporting low-income families.

For more information on SNAP and its regulations, you can visit the USDA’s official SNAP page.

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