DOJ UNCOVERS NEARLY $42 MILLION IN SNAP BENEFIT FRAUD DURING NATIONWIDE ENFORCEMENT OPERATION TARGETING MORE THAN 40 DEFENDANTS

WASHINGTON, D.C. — The U.S. Department of Justice has announced a nationwide enforcement operation targeting nearly $45 million in alleged and established fraud involving federal agricultural assistance programs, including approximately $42 million connected to the Supplemental Nutrition Assistance Program (SNAP). The coordinated initiative resulted in criminal charges, guilty pleas, and sentencing actions involving more than 40 defendants across multiple states.

The National USDA Benefits and Program Fraud Enforcement Surge, conducted between September 1 and October 21, 2026, brought together the Justice Department’s National Fraud Enforcement Division, the U.S. Department of Agriculture (USDA), its Office of Inspector General, 13 U.S. Attorney’s Offices, and the Utah Attorney General’s Office.

Federal investigators identified schemes involving stolen electronic benefit transfer (EBT) information, fraudulent retail transactions, identity theft, unauthorized benefit exchanges, and misuse of agricultural insurance programs. The nearly $45 million figure encompasses intended losses and cases involving established financial harm; it does not represent a confirmed total of money successfully stolen in every investigation.

One of the largest cases involves Jorag Yaseen and Rami Kanaan, who were indicted in the Southern District of Ohio over an alleged $29.7 million SNAP fraud scheme. Prosecutors allege that the defendants operated authorized food retail businesses in Chicago and processed thousands of fraudulent transactions using stolen EBT account information between February 2024 and April 2025.

According to the indictment, the transactions were presented as legitimate food purchases despite no corresponding sales taking place. Federal prosecutors allege that the proceeds were transferred into accounts controlled by participants in the scheme, with some funds allegedly used to purchase vehicles intended for shipment overseas. Both defendants face charges involving wire fraud and money laundering conspiracies.

Another major investigation centers on Atlanta rapper and social media personality Mercedes New, also known as Shawty Dred, who was indicted on October 7 in the Northern District of Georgia. Investigators allege that telephone numbers associated with New accessed Georgia’s SNAP automated telephone system more than 9,000 times, reaching hundreds of benefit accounts.

Authorities ultimately connected more than 500 EBT cards to the investigation and estimated approximately $4.4 million in fraudulent benefits. New was arrested in Las Vegas on October 13 and faces charges including SNAP fraud, mail fraud, access device fraud, and aggravated identity theft.

In Oregon, federal prosecutors reported substantial progress in an interstate conspiracy involving stolen food assistance benefits used to purchase and resell infant formula. Ana Patricia Escalante, identified as the leader of a transportation operation, was sentenced on September 9 to 27 months in federal prison and ordered to pay $2.4 million in restitution.

The broader Oregon investigation involved 17 defendants and more than $2.4 million in stolen SNAP benefits. Federal records documented shipments exceeding 124,000 pounds of infant formula from storage locations associated with the conspiracy. Twelve defendants had been sentenced as of the October 21 announcement, receiving a combined 157 months of imprisonment.

Authorities identified additional alleged retail fraud operations in Michigan and Ohio. Mohinder Singh, a Lansing convenience store operator, was indicted over approximately $1.09 million in intended SNAP losses. Prosecutors allege that Singh exchanged cash and unauthorized merchandise for benefits, sometimes providing customers 50 cents for every dollar in SNAP funds transferred.

In Euclid, Ohio, six defendants were charged in connection with an alleged $1 million operation involving exchanges of food assistance benefits for cash, marijuana, and other prohibited items. Those charged include Sqar Qahtan, Baligh Naji, Ahmed Al Hamami, Mohsin Mohsin, Mariah Hatcher, and Almotawakil Nassr. The allegations remain subject to judicial proceedings.

A separate Michigan investigation involved Kirk Deshaun Woodley and Chantel LaShawn Peavy, who participated in a scheme using personal information belonging to more than 650 individuals to submit fraudulent SNAP applications. Woodley pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft on September 22, while Peavy received an 18-month prison sentence on October 20 for her role in the conspiracy.

Federal prosecutors also announced charges in Pennsylvania against Michael Swanson, Nicole Swanson, David Dziobczynski, and Caitlyn Eusden Swanson. A 39-count indictment alleges that intellectually disabled women were manipulated into living with members of the group so their government benefits could be controlled and exploited. The defendants face charges spanning fraud, kidnapping, sexual exploitation-related offenses, and cyberstalking. Prosecutors identified approximately $13,392 in intended SNAP losses and $27,227 involving Social Security benefits.

In Massachusetts, Rodolfo Armando Fernandez Guzman was charged with allegedly using a stolen identity to obtain SNAP, MassHealth, and federal housing assistance benefits. Investigators identified $22,402 in alleged SNAP fraud, alongside substantially larger amounts involving healthcare and housing programs. A separate Utah case involving Besmulla Yaqoobi concerns suspected unauthorized EBT exchanges at Sahara Market in Taylorsville.

The nationwide initiative also included a federal crop-insurance fraud prosecution in Florida. Mark Frisbie pleaded guilty on September 29 after admitting that he concealed millions of dollars in agricultural sales while submitting false crop-production information. The misconduct resulted in more than $1.7 million in improper crop-insurance payments, and Frisbie also acknowledged fraudulent claims involving federal agricultural relief programs. The government identified approximately $3.2 million in actual losses across those programs.

The investigations were supported by multiple federal and state agencies, including the FBI, Homeland Security Investigations, Internal Revenue Service Criminal Investigation, U.S. Postal Inspection Service, U.S. Secret Service, and inspectors general responsible for federal benefit programs.

Attorney General Todd Blanche, USDA Secretary Brooke Rollins, Assistant Attorney General Colin M. McDonald, USDA Inspector General John Walk, and Homeland Security Investigations Acting Executive Associate Director John A. Condon announced the enforcement results, emphasizing financial accountability and protection of public assistance programs.

The Justice Department established its National Fraud Enforcement Division in April 2026 to coordinate investigations involving fraud against federal programs. The October enforcement surge represents one of its first major nationwide operations involving USDA-administered benefits and related agricultural assistance.

The cases demonstrate several methods used to exploit federal assistance programs, from compromised benefit cards and fraudulent retailers to identity theft and false agricultural claims. Some investigations have already resulted in guilty pleas and prison sentences, while defendants facing indictments, complaints, or other pending criminal charges retain the presumption of innocence unless proven guilty in court.

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