July 2, 2016

Seven Public Officials Indicted For Food Stamp Fraud

[From article]
It made barely a ripple in the national last week when initially reported, but seven state workers in Delaware were indicted for Food Stamp fraud totaling nearly a million dollars, with five arrested and two others at large. An official statement from the Delaware state government reported on June 14:
Attorney General Matt Denn announced today the arrests and indictments of seven former state of Delaware employees for theft of federal money. All seven were employed by the Department of Health and Social Services (DHSS), and were responsible for issuing Electronic Benefit Transfer (EBT) cards, and three previous arrests were also related to the same investigation.
Two of the defendants were indicted and arrested last week, two others were indicted and remain at large, one was indicted and arrested previously and still faces charges, and two have already been convicted and sentenced.
[. . .]

It is all too easy to understand the temptation that free money dispensers face.
… investigators learned of fictitious and unauthorized EBT accounts created by Division of Social Services case workers responsible for case creation and maintenance, with each of the fraudulently created cases issued varying amounts of food benefits in the form of EBT cards. The investigation revealed that the fraudulent EBT cards were delivered to State Service Centers in New Castle and Kent County, and intercepted by the suspects working at those locations. Once intercepted, the cards were personally used or sold at a discount.
[. . .]
The Audit and Recovery Management Services unit found that seven employees created more than 100 fictitious SNAP cases to procure electronic benefit transfer (EBT) cards that could be used to purchase food.
The cards were delivered to service centers, where they were picked up by the fraudsters, who either used them or sold them at a discount.


June 23, 2016
Seven ‘public servants’ indicted for Food Stamp fraud
By Thomas Lifson

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