Food Stamp Fraud

There are some stories that are too good to be true, and there are some stories that are too good to be missed. Occasionally, a story comes around that is both. This is one of those stories.

The Associated Press is reporting that the staff of a Detroit liquor store had fraud charges filed against them for allegedly exchanging alcohol, pornography, and Viagra for food stamps. As you might have guessed, these are not approved products on the government’s food stamp list. The alleged activity occurred at Jefferson’s Liquor Palace and the store netted $130,000 according to the AP. Three employees were arrested.

The AP described the scheme as working this way: “Food stamp recipients would get cash from the store in exchange for swiping larger amounts off their electronic cards. The store would then be reimbursed by the U.S. Department of Agriculture. And in some transactions, the government says the store provided informants Viagra, liquor and porn in exchange for swiping about $2,000 off food stamp cards.” Over 2 ½ years the fraud topped $130,000. Of course the store is now closed.

To read the Associated Press story click here.

Posted: 10/12/09