Thread: Welfare recipients take out cash at strip clubs, liquor stores and X-rated shops

NYC officials struggling to investigate bodegas with suspiciously high food-stamp sales

• By KATE BRIQUELET
• Last Updated: 10:13 AM, January 6, 2013
• Posted: 1:40 AM, January 6, 2013

City officials want to investigate three bodegas after The Post revealed last week they were ringing up suspiciously high sales with food-stamp money, but the probers are stymied by a lack of data.

A source told The Post that agents with the city Human Resources Administration, which investigates welfare fraud, can’t get state records on Electronic Benefit Transfer card transactions.

The Post obtained the information through a Freedom of Information request.
They also can’t get federal data on which New York stores have been sanctioned by the US Department of Agriculture for selling booze and cigarettes to welfare recipients in violation of the food-stamp program.

“If we knew who the sanctioned stores were, we would be able to watch our recipients and see where they go next,” said the source. “We’ve reached out to the Department of Agriculture . . . There’s been no conversation.”

In many food-stamp scams, a bodega will record phony purchases with EBT cards, hand customers most of the amount in cash and pocket the rest.

A USDA spokesman would not comment on the bodegas exposed in The Post, but said the agency is “prepared to take vigorous action . . . when misuse of its nutrition-assistance programs is uncovered.”

http://www.nypost.com/p/news/local/ebt_fog_stymies_probes_cbwOy8jrXojbdXM5SLLcvN

New report shows recipients spending welfare money at strip clubs and hookah parlors. Obama says we do not have a spending problem.

EXCLUSIVE: Welfare recipients using EBT cards to get cash at strip clubs, X-rated video stores and bars - NYPOST.com