Thread: AZ. Food-stamp fraud ring busted

Food-stamp fraud ring busted

by Matt Haldane -
July 14, 2011 06:10 PM
The Arizona Republic - 12 News Breaking Team

The Arizona Department of Economic Security uncovered wide-spread food stamp fraud over the course of a 15-month investigation, officials said Thursday.

The investigation uncovered people selling their electronic benefits- transfer cards for half their value. The fraud is believed to have cost the program $700,000, according to the Governor's Office.

These exchanges took place between the cardholders and employees at multiple retail locations, said Steve Meissner, a spokesman for the DES.

"We know that most recipients of public benefits play by the rules, but today's bust proves once again that some do not," Gov. Jan Brewer said. "With anti-fraud efforts at DES and collaboration with state, local and federal authorities, we will continue to weed out the scammers and schemers who abuse our public trust."

The investigation involved several agencies, including the U.S. Department of Agriculture, Office of Inspector General, Arizona Attorney General's Office and the South Mountain Precinct of the Phoenix Police Department.

So far, indictments for 18 people have been issued, according to the Governor's Office. About half of those indicted have been arrested so far, with ages ranging from 20 to 47.

The felony charges consist of unlawful use of food stamps, unlawful use of a credit card, fraudulent schemes and artifices and illegal control of an enterprise. Additionally, search warrants were executed Thursday at four locations, three in Phoenix and one in Mesa.

"Last year, (Brewer) instructed us to come down hard on these people," Meissner said. "This is a fraud on taxpayers."

The DES is not releasing details about the investigation, but it started after police noticed an increase in crime in a certain area.

"The influx of cash into neighborhoods from the illegal sale of benefits led to an increase in criminal activity," Attorney General Tom Horne said.

To discover who was involved, Meissner said, the DES looked for unusual patterns.

"We're always looking for anomalies," Meissner said. "There are patterns we can detect that show things are not kosher."

The cards are issued to individuals by name, making it clear who the original owner was, he added.

http://www.azcentral.com/news/articles/ ... rests.html

Related Thread
The Food-Stamp Crime Wave
http://www.alipac.us/ftopict-243283-foo ... amps+fraud