USDA employee and five others arrested in $66 million food stamp fraud scheme
Authorities described the operation as one of the largest frauds of its kind in U.S. history.
Brooke Rollins at the White House (File) / Saul Loeb
Six individuals, including an employee of the Department of Agriculture (USDA), were arrested Friday in New York. They are accused of orchestrating a fraud and bribery scheme that generated more than $66 million in unauthorized Supplemental Nutrition Assistance Program (SNAP) transactions, known as food stamps.
Authorities described the operation as one of the largest frauds of its kind in U.S. history. It involved Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh and Arlasa Davis, a USDA employee.
Federal prosecutors' press release states that the defendants face charges of "conspiracy to steal government funds and to misappropriate U.S. Department of Agriculture benefits."
The indictment details that, since 2019, Kehoe led a network that distributed 160 unauthorized electronic benefit transfer (EBT) cards to stores in the New York area, illegally processing more than $30 million in transactions.
Arlasa Davis, who worked in the USDA division responsible for detecting SNAP fraud, allegedly facilitated the scheme by selling confidential government information to those involved. This betrayed the public's trust and harmed New Yorkers who rely on the program for basic nutrition.
For his part, Federal prosecutor Perry Carbone stated, "this fraud was made possible when USDA employee Arlasa Davis betrayed the public trust by selling confidential government information to the very criminals she was supposed to catch. These charges should be a reminder that those who exploit anti-poverty programs for personal gain will be held accountable for their crimes.”
Similarly, Agriculture Secretary Brooke Rollins highlighted the magnitude of the operation in the "Mornings with Maria" program: "At [the] USDA, we are hyper-focused… on rooting out that waste, fraud and abuse, and… yesterday was, if not the largest, one of [the] largest stings."
Rollins underscored the Trump administration's commitment to combat fraud, stating, "that is no longer going to be allowed here in Washington, and with these programs like the food stamp program.”
He added that this case is "just the tip of the spear" and that breaking the law will have "real consequences."
The fraudulent scheme and the investigation to root out these abuses
With the cooperation of the FBI and the Department of Justice, USDA continues to investigate to ensure that taxpayer funds are appropriately used and protect benefits intended for the most vulnerable.
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