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Food-stamp fraud: Detroit-area stores swipe millions from aid program
Associated Press ^ | March 1, 2010

Posted on 03/01/2010 11:19:34 AM PST by Zakeet

Two undercover informants entered Jefferson's Liquor Palace and spotted the owner at the register. "Big baby," said one, "we gon' do this?"

The man behind the counter provided $50 in cash, two bottles of liquor, two porn DVDs and two Viagra pills — all in exchange for taking $280.85 off a food-stamp card, say federal investigators who recorded the deal.

Fraud in the government program that helps the poor has added up to nearly $100 million since 2007, according to the U.S. Agriculture Department. It's a fraction of the more than $40 billion spent to feed people each year, but the crime has become a brazen way for some small stores to literally swipe cash from the U.S. Treasury, especially in the Detroit area.

There have been at least 122 fraud-related convictions of owners or employees in the five-state Midwest region since 2007, nearly double the number from 2004-06, says USDA, which oversees the welfare program. About half of those have occurred in southeastern Michigan.

Among the latest cases: A store west of downtown Detroit is accused of selling bags of the exotic chewy drug khat in exchange for food-stamp benefits. Agents in another investigation discovered that cash was wired to Somalia and other countries.

"You have a money machine on your counter. It's a crime of opportunity. We see a lot of cases," said Sheldon Light, head of the economic-crimes unit at the U.S. attorney's office in Detroit.

(Excerpt) Read more at mlive.com ...


TOPICS: Culture/Society; Front Page News; News/Current Events; US: Michigan
KEYWORDS: foodstamps; fraud; hopeychangey; michigan; poor; welfare; welfarefraud
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People wouldn't abuse their entitlement if you lazy taxpayers would give them more money in the first place.

1 posted on 03/01/2010 11:19:35 AM PST by Zakeet
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To: Zakeet
Yours truly can't because the card is locked to buy only food. If it dispensed cash benefits, well you can buy anything.

2 posted on 03/01/2010 11:21:17 AM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Zakeet

Cities will get livable again when the money is cut off and the current residents eat each other.


3 posted on 03/01/2010 11:22:51 AM PST by ClearCase_guy (We're all heading toward red revolution - we just disagree on which type of Red we want.)
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To: Zakeet

Lets reduce the deficit by giving food stamps to people who make 20% less than is required now. Then cut the benefits by at least 10%.

Of course in a year or two we may have no choice but to make some drastic cuts.


4 posted on 03/01/2010 11:23:17 AM PST by GeronL (Political Philosophy: I Own Me (yep, boiled down to 6 letters))
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To: Zakeet

Liquor, prOn, Viagra. Terrific. :-/

Food stamps paying for more welfare babies.


5 posted on 03/01/2010 11:24:35 AM PST by RushIsMyTeddyBear (I don't have a 'Cousin Pookie'.)
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To: Zakeet
Fraud in the government program that helps the poor has added up to nearly $100 million since 2007

Nation wide? If so, that is an hellacious under statement.

6 posted on 03/01/2010 11:24:47 AM PST by Graybeard58 ("0bama's not just stupid; He’s Jimmy Carter stupid”. - Don Imus)
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To: goldstategop

But, with a corrupt store owner ... he can ring you up as buying food - while simply letting you pick up anything you like.

Like this article, the person really got booze, porn, Viagra and the store owner rang up $50 worth of merchanidice for $200+ in ‘food stamp’ money.

Remember the good ol’days when Food stamps really were stamps. The person paying for their food had the stigma of paying with coupons for food, instead of simply swiping a card. That went away because it made the recipients of the Food Stamps ‘feel bad’.


7 posted on 03/01/2010 11:26:39 AM PST by Hodar (Who needs laws .... when this "feels" so right?)
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To: Zakeet
$50 in cash, two bottles of liquor, two porn DVDs and two Viagra pills

Good times.

8 posted on 03/01/2010 11:26:44 AM PST by Disambiguator
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To: Zakeet

More Michigan muslim fraud like another muslim fraud we know.


9 posted on 03/01/2010 11:28:59 AM PST by Frantzie (TV - sending Americans towards Islamic serfdom - Cancel TV service NOW)
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To: Zakeet
$50 in cash, two bottles of liquor, two porn DVDs and two Viagra pills...

That's how grandpa spends his friday nights...

10 posted on 03/01/2010 11:29:28 AM PST by apillar
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To: Zakeet

How is a liquor store able to debit an electronic welfare card?


11 posted on 03/01/2010 11:29:36 AM PST by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: RushIsMyTeddyBear

I was behind a couple at the dollar store. They put two Sprites on the welfare card, then bought $15 in dollar crap and got $50 in cash from a Debit card. I wouldn’t be surprised if the Debit card wasn’t their card as well.

Whoever gets that bill will be surprised “$65 from the dollar store????”.


12 posted on 03/01/2010 11:29:53 AM PST by AppyPappy (If you aren't part of the solution, there is good money to be made prolonging the problem.)
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To: pnh102

It probably sells soda as well.


13 posted on 03/01/2010 11:30:53 AM PST by AppyPappy (If you aren't part of the solution, there is good money to be made prolonging the problem.)
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To: Zakeet

Detroit - Nuke the site from orbit. It’s the only way to be sure.


14 posted on 03/01/2010 11:31:06 AM PST by LeonardFMason
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To: ClearCase_guy
Cities will get livable again when the money is cut off and the current residents eat each other.

Yep -

1. Stop feeding the raccoons.
2. Starve the monkeys

Rebuild the Republic with the survivors.

15 posted on 03/01/2010 11:31:54 AM PST by Noumenon ("Upon what meat doth this our Caesar feed, that he has grown so great?" - Julius Caesar)
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To: Hodar

And you had to buy them, at least pay some up front for what you got in food stamps.


16 posted on 03/01/2010 11:32:34 AM PST by lucky american (MONEY POWER VOTES.)
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To: Zakeet
Fraud and abuse? In a government program?

Shocked, I say. I'm shocked.

17 posted on 03/01/2010 11:32:48 AM PST by wbill
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To: Disambiguator

Laissez le bon temps roulliez! Cue the zydeco music...


18 posted on 03/01/2010 11:33:13 AM PST by Noumenon ("Upon what meat doth this our Caesar feed, that he has grown so great?" - Julius Caesar)
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To: Zakeet

Cut the food stamp program. Period. Other option, force the business that take food stamps to keep a copy listing purchases and must be attached to the receipt of purchase. Inform business that audits will be made on a random plan. Most cash registers provide a receipt.


19 posted on 03/01/2010 11:34:00 AM PST by Logical me (Oh, well!!!)
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To: LeonardFMason
Exactly what I was planning to post. LOL.
20 posted on 03/01/2010 11:34:15 AM PST by Constitution Day (Get over it.)
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