PROVIDENCE, R.I. (AP) — A criminal swindle of the nation's $64.7 billion food stamp program is playing out at small neighborhood stores around the country, where thousands of retailers are suspected of trading deals with customers, exchanging lesser amounts of cash for their stamps.
Authorities say the stamps are then redeemed as usual by the unscrupulous merchants at face value, netting them huge profits and diverting as much as $330 million in taxpayer funds annually a year. But the transactions are electronically recorded and federal investigators, wise to the practice, are closely monitoring thousands of convenience stories and mom-and-pop groceries in a push to halt the fraud.
Known as food stamp trafficking, the illegal buying or selling of food stamps is a federal offense that has resulted in 597 convictions nationwide and $197.4 million in fines, restitution and forfeiture
orders, over the past three years, according to the U.S. Department of Agriculture's Office of the Inspector General. The USDA last month awarded a 10-year contract worth up to $25 million to Fairfax, Va.-based SRA International, Inc., to step up the technology used to combat fraud.
"It's misuse of the program. It's a misuse of taxpayer dollars at a tough time. Not only the people who need the program are having a tough time, but the people who are paying for the program are having a tough time, too," said Kevin Concannon, USDA Undersecretary for Food, Nutrition and Consumer Services.
http://www.google.com/hostednews/ap...1GEGyQ?docId=3e4b5c8473a04772b2ef421fa655b89f
View attachment 4833
Authorities say the stamps are then redeemed as usual by the unscrupulous merchants at face value, netting them huge profits and diverting as much as $330 million in taxpayer funds annually a year. But the transactions are electronically recorded and federal investigators, wise to the practice, are closely monitoring thousands of convenience stories and mom-and-pop groceries in a push to halt the fraud.
Known as food stamp trafficking, the illegal buying or selling of food stamps is a federal offense that has resulted in 597 convictions nationwide and $197.4 million in fines, restitution and forfeiture
orders, over the past three years, according to the U.S. Department of Agriculture's Office of the Inspector General. The USDA last month awarded a 10-year contract worth up to $25 million to Fairfax, Va.-based SRA International, Inc., to step up the technology used to combat fraud.
"It's misuse of the program. It's a misuse of taxpayer dollars at a tough time. Not only the people who need the program are having a tough time, but the people who are paying for the program are having a tough time, too," said Kevin Concannon, USDA Undersecretary for Food, Nutrition and Consumer Services.
http://www.google.com/hostednews/ap...1GEGyQ?docId=3e4b5c8473a04772b2ef421fa655b89f
View attachment 4833