From February 2012 through November 2012 the SNAP redemptions were more than $2.8 million greater than the estimates:
The volume of SNAP benefits reimbursement received at Eddies Grocery substantially exceeded those estimates, indicating large scale food stamp fraud. In his application to participate in SNAP, the owner estimated that Eddies Grocery would generate receipts of approximately $280,000 annually, or an average of approximately $23,333 per month. Bank records listed Vargas as the manager of Eddies Grocery, and another individual as the owner of the store.Įddies Grocery was first approved to participate in the SNAP program in 2007. If the transaction is authorized, the amount of the purchase is then deducted electronically from the food stamp benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.Įddies Grocery designated a bank account at Sovereign Bank to receive the reimbursements for SNAP benefits. After the customer enters a secret Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. Food purchases are made by swiping the card at the terminal. Every retailer authorized to accept food stamp benefits has an EBT terminal. They may not, however, exchange food stamp benefits for cash.Įvery food stamp recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Retail food stores that have been approved for participation in SNAP may sell food in exchange for food stamp benefits. Magistrate Judge Joel Schneider in Camden federal court.Īccording to documents filed in this case:įrom February 2012 through December 2012 Vargas managed Eddies Grocery, a small grocery store in Camden that was authorized to accept SNAP benefits. He is scheduled to appear this afternoon before U.S. Vargas was arrested by agents of the Department of Agriculture, Office of Inspector General, Homeland Security Investigations and the IRS. He is charged by Complaint with one count of stealing monies from the United States. Vargas, 34, was charged in connection with a scheme in which he allegedly purchased Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps) for 50 cents on the dollar at the local grocery store he was managing in Camden. Government through a food stamps scheme was arrested by federal agents this morning, U.S. – A Camden man who allegedly stole more than $1 million dollars from the U.S.