Food Truck Owner Sentenced For Food Stamp Fraud

CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Paul Carroll, of Rochester, NY, who was convicted of conspiracy to defraud an agency of the United States in connection with food stamps, was sentenced by U.S. District Judge David G. Larimer to serve two years’ probation, to include eight months home confinement. The defendant was also ordered to pay restitution totaling $82,066. 

Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that the defendant Carroll conspired with co-conspirator David Sobczyk and others to commit food stamp fraud.

Congress established the Federal Food Stamp Program in 1977 to alleviate hunger and malnutrition. In 2008, the program was renamed the Supplemental Nutrition Assistance Program (SNAP program), which uses federal tax dollars to subsidize low-income households, helping low-income individuals and families to maintain more nutritious diets by increasing the food purchasing power of eligible households. The USDA Food and Nutrition Service (FNS) administers the SNAP program through retail food stores or food truck delivery business (FTDB) that have been approved for participation in the SNAP program to sell food in exchange for the SNAP program benefits.

A business that accepts the SNAP program benefits must do so only in connection with retail sales of eligible food products, and must be authorized by FNS as a retail food store or FTDB. According to USDA regulations, most edible items, except for prepared foods, vitamins and medicines, are eligible for purchase with food stamp benefits. Items such as beer, cigarettes, paper goods, soaps, and detergents are ineligible for purchase with food stamp benefits. It is also against the SNAP program regulations to allow customers to pay for merchandise on credit with EBT SNAP/food stamps. Federal law specifies that a purchase made utilizing the SNAP program benefits must be tax exempt. Food stamp benefits may not lawfully be exchanged for cash.

In 1991, Carroll applied to FNS and received authorization to operate a business, Carroll Services, which received the SNAP program benefits. Carroll Services operated a FTDB. Contrary to the regulations, procedures, and policies governing the administration of the SNAP program benefits, the defendant operated his FTDB as a “for credit” operation, whereby he allowed beneficiaries to purchase items from him “on credit,” obtained from the beneficiaries their identifying information, including EBT card number, PIN number, and social security number, and thereafter caused funds to be deducted from the beneficiaries’ SNAP benefits accounts on the date that the benefits were available on the beneficiaries’ EBT cards.

In November 2015, David Sobczyk also applied to FNS and received authorization to operate a business, Sobczyk Services, which received the SNAP program benefits. Sobczyk Services operated a FTDB. Sobczyk also operated his FTDB as a “for credit” operation. Carroll provided Sobczyk with the vehicle to use for his FTDB, and Sobczyk made monthly payments to Carroll for the vehicle, who knew that the FTDB was being operated as a “for credit” operation contrary to program policies.

David Sobczyk was previously convicted and sentenced to serve two years probation and ordered to pay restitution totaling $82,066. He also forfeited $33,991.41.

The sentencing is the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in Charge Bethanne M. Dinkins, and the New York State Office of Inspector General, under the direction of Inspector General Letizia Tagliafierro.

# # # #