Nearly $42 Million in SNAP Fraud Cases Announced Nationwide, Including Oregon Infant Formula Scheme

Federal authorities announced a nationwide benefits fraud enforcement effort October 21 involving more than 40 defendants, including an Oregon prosecution in which stolen food assistance benefits financed purchases of infant formula for black-market resale.

The Justice Department, Department of Agriculture and USDA Office of Inspector General said the coordinated actions involved nearly $45 million in intended losses across SNAP and other agricultural programs. Nearly $42 million involved the Supplemental Nutrition Assistance Program, which provides monthly food assistance to low-income households.

The figures encompass cases at different stages, including new charges, guilty pleas and sentencing proceedings. Intended losses do not necessarily represent money actually paid out or permanently lost.

The enforcement effort ran from September 1 through October 21 and involved the Justice Department’s National Fraud Enforcement Division, 13 U.S. attorney’s offices and the Utah attorney general’s office.

Oregon case involved stolen benefits and formula shipments

Among the cases highlighted was an interstate conspiracy prosecuted in Oregon involving more than $2.4 million in stolen SNAP benefits.

Ana Patricia Escalante, identified by prosecutors as the leader of a transport crew, was sentenced September 9 to 27 months in federal prison and ordered to pay $2.4 million in restitution. She was among 17 defendants indicted in October 2024. Authorities said 12 defendants have been sentenced, receiving a combined 157 months in prison and orders to pay full restitution.

According to the announcement’s account of court documents, conspirators obtained SNAP account information through skimming devices and other methods. They used stolen benefits to purchase large quantities of infant formula and other food products from stores in Oregon, Washington, California and elsewhere.

Members of the theft crew, most of whom authorities identified as Romanian nationals illegally present in the United States, sold the merchandise to Escalante’s transport crew.

That crew collected and stored the products at residences and storage units before moving them in private vehicles and through commercial carriers for resale. Shipping records documented more than 124,000 pounds of infant formula, valued at over $2.4 million, shipped from the conspiracy’s storage facilities.

Authorities said the thefts depleted accounts belonging to thousands of low-income families, leaving parents and seniors unable to purchase groceries. The announcement lists $4.4 million in intended losses for the Oregon case, separately from the more than $2.4 million in stolen benefits described.

Largest alleged scheme involved Chicago retailers

The largest case highlighted involves approximately $29.7 million in alleged losses tied to retail food stores in Chicago.

A federal grand jury in Ohio indicted Jorag Yaseen and Rami Kanaan on charges of conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering.

Prosecutors allege that, between approximately February 2024 and April 2025, the defendants and others processed thousands of transactions using stolen Ohio and other state EBT account information. The transactions allegedly appeared to be legitimate food purchases even though no actual sales occurred.

Authorities allege the transactions directed federal money into accounts controlled by the defendants and others. Some proceeds allegedly financed automobile purchases for use and shipment overseas.

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Other cases involved identity theft and cash exchanges

In Georgia, rapper and social media influencer Mercedes New, known as Shawty Dred, was indicted October 7 in an alleged $4.4 million SNAP fraud scheme.

Investigators allegedly linked more than 500 Georgia EBT cards to New. Authorities said phone numbers associated with him contacted the state’s automated benefits telephone system more than 9,000 times, accessing over 350 accounts. He was arrested October 13 in Las Vegas.

Other cases involved alleged exchanges of SNAP benefits for cash or prohibited items. A Michigan convenience store operator allegedly offered customers 50 cents in cash for each dollar in benefits transferred. Six defendants in an Ohio case allegedly exchanged benefits for cash, marijuana and other ineligible items.

The enforcement effort also included a Florida farmer’s guilty plea involving false crop-insurance claims and fraud against two farmer-relief programs.

Officials emphasized that benefit theft directly harms recipients. The announcement described a mother whose compromised EBT card was declined at a grocery store, forcing her to borrow money to feed her children.

Charges in pending cases remain allegations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.