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32 area residents indicted in $2M food stamp fraud conspiracy
All charges are felonies
YOUNGSTOWN
Thirty-two area residents, most of Youngstown, have been indicted in a Youngstown-based $2 million food-stamp fraud conspiracy, including George Rafidi of Lordstown, whom federal authorities consider the leader.
Rafidi is serving a 94-month sentence in federal prison for pointing a .357-caliber revolver during a confrontation Oct. 8, 2014, with Lordstown police and U.S. marshals who were executing a warrant to search his residence in connection with the food-stamp investigation by the U.S. Department of Agriculture.
Count 1 of the indictment alleges that beginning in or around June 2010 and continuing to October 2014, the people indicted conspired to defraud the USDA, Food and Nutrition Service, specifically the Supplemental Nutrition Assistance Program, formerly known as the Food Stamp Program.
Participants in the purported conspiracy are accused of defrauding SNAP by converting illegally obtained SNAP benefits into money that the defendants, their co-conspirators, and designees could use for any purpose and to enrich the defendants, said Acting U.S. Attorney Carole S. Rendon.
Federal officials said it was part of the conspiracy that SNAP beneficiaries went to Breaden Market and obtained cash and prohibited items, such as alcohol and tobacco, in exchange for their SNAP benefits. Rafidi fraudulently redeemed SNAP benefits and caused money to be deposited into Breaden Market’s bank accounts, according to the indictment.
Rafidi operated the Breaden Market, a convenience store at the corner of Breaden and Overland avenues. On March 31, 2010, he submitted a SNAP application to the USDA Food and Nutrition Service for the store, which began operating about April 2010, according to the indictment.
During the course of the conspiracy, Rafidi and Breaden Market submitted claims for more than $2 million in fraudulently obtained SNAP benefits, Rendon said.
Count 2 of the indictment alleges the defendants knowingly acquired benefits through the use of Electronic Benefit Transfer cards in exchange for U.S. currency and other ineligible items.
Officials of the Mahoning County Department of Job & Family Services assisted federal officials in the investigation, said Atty. Robert E. Bush, department head.
“We examined client files for eligibility and interviewed individuals who may have been trafficking in food stamps, said Audrey Morales, Mahoning County JFS fraud investigator/manager.
Also, Morales said, if those indicted are found guilty, the local JFS, working through the county prosecutor’s office, would impose an intentional program violation charge which might lead to losing food-stamp benefits for 12 months to lifetime.
Those charged will receive summonses at various times to be arraigned before Judge George J. Limbert in the Thomas D. Lambros Federal Building and U.S. Courthouse in Youngstown. Arraignment dates have not been scheduled.
All of the charges are felonies.
If convicted, defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any; the defendant’s role in the offense; and the characteristics of the violations.
In all cases, the sentence will not exceed the statutory maximum of 20 years, and in most cases, will be less than the maximum, federal officials said.
The matter is being prosecuted by Assistant United States Attorneys David M. Toepfer and Benedict Gullo.