Thirty-two people indicted for $2 million food stamp fraud conspiracy in Youngstown

A federal grand jury indicted 32 people for their roles in a $2 million food-stamp fraud conspiracy, said Acting U.S. Attorney Carole S. Rendon.

Count 1 of the indictment alleges that beginning in or around June 2010 and continuing to October 2014, the following individuals knowingly conspired to defraud the U.S. Department of Agriculture, Food and Nutrition Service, specifically the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. The objects of the conspiracy was to defraud 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. Indicted are:

On or about March 18, 2010, George Rafidi filed articles of incorporation for Ghazy, LLC, doing business as Breaden Market, a convenience store located in Youngstown. On March 31, 2010, Rafidi completed and submitted a SNAP application for stores, for Breaden Market to the USDA Food and Nutrition Service.  Breaden Market then began operating in or about April 2010, according to the indictment.

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.

During the course of the conspiracy, Rafidi and Breaden Market submitted claims for more than  $2 million in fraudulently obtained SNAP benefits, according to the indictment.

Count 2 of the indictment alleges the above-named defendants knowingly acquired USDA FNS SNAP benefits through the use of Electronic Benefit Transfer cards in exchange for U.S. currency and other ineligible items.

If convicted, the 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 and, in most cases, it will be less than the maximum.

The investigation preceding the indictment was conducted by the U.S. Department of Agriculture, Office of the Inspector General.  The matter is being prosecuted by Assistant United States Attorneys David M. Toepfer and Benedict Gullo.

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.