Law enforcement crack down on grocery store owners accused of stealing millions in government food benefits

San Francisco, California – San Francisco’s District Attorney Brooke Jenkins announced on Thursday charges against 11 individuals involved in a multi-million-dollar scheme defrauding the Supplemental Nutrition Assistance Program (SNAP). The scheme, which manipulated public funds designated for low-income families requiring food assistance, resulted in over $4 million in stolen benefits.
Mostly operating through local grocery stores in San Francisco’s Chinatown, this complex scam was carried out by proprietors who were determined to have coordinated most of the fraudulent transactions. Using the advantages of the program, three business owners were found to have siphoned almost $3 million. These people are now facing serious charges involving grand theft, welfare fraud, and other related felony offenses.
Apart from these allegations, the District Attorney’s office has identified two other stores engaged in similar operations, each with over half a million dollar in abused money. A total of seven individuals from these establishments have been similarly charged, highlighting the extensive reach of this fraudulent network within the community.
The scam had really simple mechanics but with a layer of sophisticatio . Using a “runner” who roamed the city, offenders sought individuals ready to sell their SNAP benefits for money. Using coded language—like the phrase “EBT—the runner would agree to pay a fraction of their value for the benefits.
The SNAP card would then be carried to one of the related stores, where fictitious purchase activity was conducted to empty the amount on the card. The operators of the store and the cardholder then split the earnings.
In her statement, District Attorney Jenkins took a strong position on the matter underlining the dedication of her office to preserve the integrity of public benefits.
“I would like to thank the US Department of Agriculture, Office of the Inspector General, and the San Francisco Human Services Agency for their hard work and collaboration in this case,” said District Attorney Brooke Jenkins. “My office is committed to ensuring the integrity of public benefits: that they remain in the hands of recipients and are used for their intended purpose of providing food to needy community members.”
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This incident not only emphasizes the need of careful supervision in public assistance programs but also reminds everyone of the possibility of misuse inside systems meant to assist those in need. The San Francisco District Attorney’s office continues to pursue all leads in this case to ensure that all involved are held accountable and to prevent future exploitation of such essential public resources.