There’s a black market for everything; apparently, even food stamps. The Atlanta Journal Constitution reports that a Georgia convenience store owner was caught swindling the government out of millions of dollars by paying customers 60 cents for every dollar they sold him in food stamps.
This store owner was guilty not only of a federal offense when he “trafficked” food stamps, but also for charging the food stamp sellers an astronomical transaction rate (a rate that would make even payday lenders envious) and forcing them to also purchase goods from his store (with convenience store markups, no less). Eventually, federal authorities caught up to him and seized hundreds of thousands of dollars, along with his home and his store, as they charged he had acquired them through fraud and money laundering. (Cleanup in the fresh fraud aisle!)
A federal judge convicted the 49-year-old store owner of trafficking food stamps, from which he illegally netted about $6 million, and sentenced him to four years and three months in prison, followed by three years of probation. He also must pay more than $5.9 million in restitution. (Better start coupon-cutting.)
Food stamps beneficiaries have an immediate need for sustenance and money, but a crime that tempts them to cash in instead of using the benefits for nutritional assistance hurts both the needy and those whose tax dollars help fund these programs. To exploit that desperation—to the tune of $6 million—and undermine the government programs that serve to alleviate it is condemnable. (The best sign for this store: Out of Business!)
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