Last Updated:September 30 @ 07:52 pm

$3M in food stamp fraud in just one store

By Associated Press

The manager of a Camden store pleaded guilty Wednesday to charges of fraudulently redeeming nearly $3 million in food stamp benefits.

Alexander Vargas, 34, who managed Eddie's Grocery, accepted a plea agreement Wednesday before U.S. District Judge Joseph H. Rodriguez, the U.S. Attorney's Office said in a news release. Vargas faces up to 10 years in prison, but is likely to serve less, according to a spokesman for the office.

Vargas was a cosigner on the store's account beginning February 2012. Through the year, until early December, he fraudulently redeemed $2.98 million in food stamp benefits, said spokesman Matthew Reilly.

Eddie's Grocery, on the 1500 block of Mount Ephraim Avenue, began participating in the Supplemental Nutrition and Assistance Program, the U.S. Department of Agriculture program popularly known as the food stamp program, in 2007. SNAP recipients receive a card, similar to a debit card, that can be used at terminals at participating retailers.

When Vargas managed the grocery, the U.S. Attorney's Office said, he redeemed some customers' food stamp benefits in exchange for cash, at a rate of about 50 cents on the food stamp dollar.

An undercover law enforcement officer and cooperating witness were able to make this type of exchange five times between June 7 and Oct. 4, 2012, exchanging $1,359.75 in SNAP benefits for $650 in cash, the U.S. Attorney's Office said.

Sentencing is scheduled for Feb. 5. Vargas agreed to forfeit $22,273 that was taken when he was arrested May 16 and the entry of a forfeiture judgment for $2.98 million, Reilly said.

___

(c)2013 The Philadelphia Inquirer

Visit The Philadelphia Inquirer at www.philly.com

Distributed by MCT Information Services

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38 Comments

  1. dodgecharger4404Comment by dodgecharger4404
    October 31, 2013 @ 1:32 pm

    And we are continually told that big government is a better manager of tax dollars, benefits for the needy, and now our healthcare. What an utter falsehood!

    You can bet that many fraudsters will take advantage of Obamacare, just as other federal programs. With all of the lies surrounding O-care in legislating process, the same will happen in implementation and management. Dishonesty everywhere, that’s what it will be.

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    • thedoveComment by thedove
      November 1, 2013 @ 8:58 am

      >> You can bet that many fraudsters will take advantage of Obamacare, just as other federal programs <<

      According to security expert John (?) McAfee, there's no central clearing house for government sites relating to health care, so many scammers are setting up what appear to be official sites, garnering all sorts of personal information, including SS numbers and bank account numbers and passwords. He said ObamaCare is "a scammer's wet dream."

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    • stopspendingComment by stopspending
      November 1, 2013 @ 10:24 am

      You can bet the retailers know who the ff fraudsters are. Give the retailer a large reward for whistleblowing on the fraudsters and the fraud will be reduced. With all our IT capabilities, we could easily limit the use of the card to non- junk food. No more cookies, soda, chips, etc. This is the nutrition program Michelle should be pushing.

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  2. faaqComment by faaq
    October 31, 2013 @ 1:49 pm

    Well no wonder so many in this country still go hungry – they’re selling their food stamps for cash. To buy booze, cigarettes, tattoos…If there’s a way they can track any of these EBT cards that were swapped for cash, those card holders should immediately be removed from the program. If you can sell the cards, obviously you aren’t going hungry and don’t need to be on the program. It’s too bad there’s so many that commit welfare fraud because they just give everyone a bad reputation. There are folks out there that really do need some assistance but they erroneously get lumped in with the fraudsters.

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  3. reelmanComment by reelman
    October 31, 2013 @ 2:26 pm

    Wake me up when my cupcake GOP actually does something besides cower in the corner or trash conservatives…

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    • ltparComment by ltpar
      October 31, 2013 @ 2:57 pm

      Don’t hold your breath, it won’t be in this lifetime? Best that we fire them all.

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    • aretiredgiComment by aretiredgi
      November 1, 2013 @ 1:47 am

      Both sides are as guilty as the other. They care about keeping that nice office and all the freebies they can muster.

      DUMP EVERY INCUMBENT IN NOVEMBER 2014 REGARDLESS OF PARTY. IT WON’T BE ANY WORSE, AND IT JUST MAY GET BETTER.

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  4. braines57Comment by braines57
    October 31, 2013 @ 2:32 pm

    What is really sad about this and most other welfare fraud stories is that it is the adult who is “cashing in” their benefits for stuff other than food, but meanwhile their kids go hungry. One more reason that government is NOT the best way to deal with this problem. When people go to 2nd Harvest or one of the foodbanks all they get is food. Here in the Nashville area we have many churches that regularly help people out who are in need, but we never just give them something they can use for cash – we restrict it to food and the other types of things that they said they needed when they applied for the assistance in the first place. But I forgot – God’s plan is “offensive” and heaven forbid we “offend” those who make a choice to try to live off of someone else’s hard work.

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    • poppoComment by poppo
      October 31, 2013 @ 5:43 pm

      The kids probably get breakfast, lunch, and dinner at school. Besides, the mom and her boyfriend are probably stoned and dad lives in Alabama. And haven’t you heard, God is dead, now we have the nice government to take care of us cradle to grave.
      Seriously, we need to PRAY, folks, God Still Listens to Prayers!

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  5. sirodComment by sirod
    October 31, 2013 @ 2:59 pm

    Which state is Camden in?

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    • EarlComment by Earl
      October 31, 2013 @ 3:26 pm

      At least 1 Camden in NJ which is near Philadelphia, PA-There may be other Camdens in US, Don’t know the others- Camden is a heavily minority populated city….’Nuff said!

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    • bulldogComment by bulldog
      October 31, 2013 @ 4:01 pm

      Take your pick.

      How many states have cities named Camden?
      In: US States Cities and Territories
      Answer: currently, 18 cities which include:

      Camden, Alabama
      Camden, Arkansas
      Camden, California
      Camden, Delaware
      Camden, Illinois
      Camden, Indiana
      Camden, Maine
      Camden, Michigan
      Camden, Minneapolis
      Camden, Missouri
      Camden, New Jersey
      Camden (town), New York
      Camden (village), New York
      Camden, North Carolina
      Camden, Ohio
      Camden, South Carolina
      Camden, Tennessee
      Camden, Texas

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    • Jota_Comment by Jota_
      October 31, 2013 @ 4:38 pm

      Seventeen states have a city or town named Camden, but only one has an
      Eddies Grocery 1548 Mount Ephraim Ave, Camden, NJ 08104-1661

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    • Jota_Comment by Jota_
      October 31, 2013 @ 4:53 pm

      Assuming Google Earth is showing the correct location for the above address, the building is only 25 feet by 50 feet, approximately 1200 square feet

      The only business must have been fraud. Wonder what took so long that $3 million could have been racked up

      Using the above “$1,359.75 in SNAP benefits for $650 in cash”

      To accumulate $3 million in fraud from $650 exchanges is over 4600 times

      Assuming once a month, that is 383 individuals in one year

      Why are they not rounding them up?

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    • crustyoldgeezerComment by crustyoldgeezer
      October 31, 2013 @ 5:08 pm

      “jota”
      The intention is NOT to harm the voter base.

      Just propr somebody up for show.

      They never said the ‘store’ was put out of business and the owners charged as well.

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    • sirodComment by sirod
      October 31, 2013 @ 5:37 pm

      Thanks for the city and state info. I was hoping it was not my state, and it isn’t. I’m sure it happens in every state and in most cities.
      In reply to a different comment I’d like to explain that my 85 year old stepfather lives in my home. He has Parkinson’s and is unable to read or write. I take care of all of his business for him and would not consider doing anything dishonest. BUT I can certainly see how it would be so easy to get by with it because older people are so vonerable. God bless them all. One day all of us will be just like them if we live long enough. I believe in paying it forward.

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    • mredComment by mred
      October 31, 2013 @ 9:58 pm

      sirod It is not so much the older folks that they take advantage of, but the young one selling it for money to buy drugs and things that food stamps will not buy. There are a lot of them that do not need those food stamps at all, but have conned their way into them and are selling the stamps for money instead of using it to buy food. Those people really know how to con the system and get as much money out of it as they can. How else do you suppose they afford those cars they drive and the cloths they wear?

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  6. maximusprime1Comment by maximusprime1
    October 31, 2013 @ 3:11 pm

    This is just the TIP of the iceberg. This goes on everywhere all the time.
    How about the places that redeem govt freebie cards and ship the free stuff in barrels all over the world at the same store. This made headlines.
    True story on my part. I was standing in a 7/11 store that charged $3.99 per gallon for milk where a guy bought milk with a food stamp card. When I left the guy was by his car and I told him the Aldi store across the street had milk for $1.98 and he could get TWO gallons for the SAME price he just PAID. His reply was, its not MY $ its the govts $ and I don’t care. I wished him well. This is NOT the 1st time this happened. Another time at a different store a couple from Asia Minor tried to use a EBT card and it bounced. Spoke zero English so finally the manager got them to understand the card was empty. The husband pulled a BIG wad of 100′s from his pocket and paid with 2 $100 bills. Then they got in a brand NEW Lexus RX350 SUV and drove away. These are NOT isolated incidents.

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  7. crustyoldgeezerComment by crustyoldgeezer
    October 31, 2013 @ 3:11 pm

    I like LIFE at HARD LABOR a lot better than ’10 years max, probably less’.

    How about a minimum 20 years per million dollars, or any portion thereof?

    Applied equally across the board to include politicians at ALL levels of government, specifically including the federal level….

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  8. southernpatriotComment by southernpatriot
    October 31, 2013 @ 3:18 pm

    My wife and I volunteer at our local food bank and soup kitchen. We do not give out cash, but only cooked meals, or groceries.

    I was in a grocery store in August, getting milk, eggs, and bread. In line I was behind a big lady with 3 shopping carts full of name brand items, which I never purchase. Her total was over $3000. She paid with EBT cards. I asked the clerk when it was my turn, if that was normal, and she said there were more than a dozen similar she knew of, but at least they all purchased groceries. She then told me several locations where EBT card holders could cash their cards in for 50 cents on the dollar. Apparently, this scan is going on far from New Jersey as well.

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  9. maximusprime1Comment by maximusprime1
    October 31, 2013 @ 3:26 pm

    Hey GOP USA start a log where people can log abuses. This goes on everywhere all the time. Abusers BRAG all the time about this stuff.

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  10. squeakComment by squeak
    October 31, 2013 @ 3:34 pm

    And we are supporting these low life scammers with our hard earn money… this makes me see RED, angers me to no end… this welfare retirements for these takers & losers need to come to an end, this is where most of our tax dollars are going, it will only get worse if we do not put a stop to this monster ” Amnesty ” !

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    • crustyoldgeezerComment by crustyoldgeezer
      October 31, 2013 @ 3:43 pm

      Back in the 1950′s ‘welfare’ was PRIVATE CHARITY domain with the government with very little other than to military, and even then their ‘gifts’ were paltry.

      Them in the 60′s, the democrat discovered to awesome ability to BUY VOTES.

      All they had to do was institute a teensy little giveaway that nobody would notice… “hide it in the dept of agriculture where nobody looks or cares”,.

      Then, over time, gradually increase the amounts and lower the qualifications until large blocks of people are addicted and know their votes buy the ‘fix’ every month.

      Every governmennt handout should be stopped and the Private Charities given back the responsibility of caring for those who CANNOT, but not for those who WILL NOT earn their food.

      With the taxcut for getting rid of the ‘nearly a trillion dollars’ that the federal government no longer needs to buy votes, the PRIVATE CHARITIES will get more in donations to do what they need to do.

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  11. handymanherbComment by handymanherb
    October 31, 2013 @ 3:36 pm

    How about requiring ID’s to get food stamps so they can’t collect at three our more addresses and I want ID to include finger prints taken so you won’t have three ID’s to collect with

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    • phuddsComment by phudds
      October 31, 2013 @ 4:37 pm

      Careful now, next thing you’ll be wanting a picture ID to vote!

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    • thedoveComment by thedove
      November 1, 2013 @ 9:12 am

      Hey, Herb, haven’t you heard? Requiring an ID discriminates against minorities. Haven’t figured out how, yet, but that’s what the media say, so it must be true.

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  12. ConnieComment by connie57
    October 31, 2013 @ 3:52 pm

    There are SOMETIMES valid reasons for another person using someone else’s food stamp debit card. The real owner of the card could be too frail or sick to go grocery shopping, and an able-bodied friend offers to do the errand. If ID were made a requirement, the deal wouldn’t pass the security of the SNAP debit card.

    Otherwise, it’s a good idea because I think most of the cases of other people using a SNAP card are real cases of fraud. How to tell the difference? I honestly don’t know.

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    • thedoveComment by thedove
      November 1, 2013 @ 9:17 am

      Sorry to see your comment got only threes, because I think you have a valid point. Your scenario certainly could happen, and I can see where it would create a problem, albeit one that should be easily solved. Perhaps in such cases a second party could be authorized to use the card, and I don’t see how in this day and age, with the technology we have, that couldn’t be done.

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    • maximusprime1Comment by maximusprime1
      November 4, 2013 @ 10:23 pm

      Of course Connie is correct. There would not be many of these people. I am retired now due so I do a LOT of shopping for the wife. I pay attention. No one in their right mind wants the truly needy to suffer.
      But where I live in suburban Cook county next to Chicago the fraud is RAMPANT beyond belief. I mentioned the gallon of milk and the couple that pulled out a wad of $100′s. Here is what I witnessed myself. The summer of 2012 before the election the free O man cell phones were handed out by the thousands at many locations. In parking lots where the temperatures were 95 to 100 people stood in lines 20 deep getting the free cell phones. The only proof needed was a govt ID care or a Medicare card and you got the phone. NOTHING else. People got on their own cell phones and called other people who came for the freebie phones. At one parking lot they had the phones ONSITE and people walked away from the TENT where they got it with a working cell phone, as long as they had a govt id card or Medicare card. People actually said I will cancel my current phone and use the free cell phone. I saw this with my own 2 eyes. IL medicaid does not require a IL address. Currently the Medicaid files are being verified by a outside company because the IL state workers and their union were not doing their job.
      http://illinoispolicy.org/nearly-200k-illinois-medicaid-enrollees-found-ineligible-for-the-program/
      This audit found a 63% ERROR RATE, yes 63%.
      I know a lot of people who interface with the public. Hints for some people:
      1. Don’t plead poverty when you walk in wearing gold all over, fur coats, Coach handbags, the latest I-pad and drive new Lincoln Navigators.
      2. Don’t whip out $100 bills to pay for the minor stuff, expensive booze, that is not covered by the EBT card and then go get in your brand new car, Camry, Lexus huge SUV’s, Cadillac Escalade, or other new $30,000 SUV’s. I have lost count of how many people did just that.
      3. People whip out Medicaid card for doctor and eye glasses and drive the same NEW vehicles as above.
      These are NOT isolated examples.

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  13. capricorn1Comment by capricorn1
    October 31, 2013 @ 3:54 pm

    this is rampant down south especially in black neighborhoods.
    store owners are just as at fault they are ripping off the system also

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  14. brightwingerComment by brightwinger
    October 31, 2013 @ 4:04 pm

    Many drug dealers and their girlfriends abuse the system as well. They have no reported income, yet their cashflow says otherwise.

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  15. poppoComment by poppo
    October 31, 2013 @ 5:30 pm

    That will never happen with Obamacare. They are hiring the food services manager from Amtrack to administer the ACA because he is familiar with this kind of fraud!

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  16. freedomfighterComment by freedomfighter
    October 31, 2013 @ 5:41 pm

    This perpetrator, and all others, caught abusing the system, should be put into Prison for Life, to set a example that we will not allow the truly hungry to be cheated of their survival, because of their theft, and abuse of the systems designed for those truly in need.
    Does this really surprise anyone though?. In actuality, our Government subsidy programs are only about 30% to the truly needy, and 70% fraudsters, users of the system, lifer recipients, Lazy, slothful, and those learning from a lifetime of their parents being on the system.

    Until steps are taken to actually background check, and evaluate whither those who claim the benefits, actually qualify for them or not, the fraud and abuse of the system will continue at the controllers own hands.
    Is it really politically, or even morally incorrect, to discern whither or not a individual or family, are really needy?.
    Those who work in this system are lackeys, who instead of actually doing their jobs in the field, spend their times out there doing other, or personal things, and then filling out a positive report for those they are supposed to check on.
    In truth, they are more at fault of abusing the system, than those individuals and Families which do. These benefits, which are being granted to those who do not really deserve them, are a large part of the real reason our economy is underwater. How can it be legal for illegals to claim these benefits?. How is it right for those on food stamps to be able to purchase anything, but the staples needed to keep Families from being hungry?.
    I have read right here in these editorials, of massive cases of misuse of the food stamp program, by purchasing steaks, and lobsters with the funds. I was behind a Latino at a store, who was buying beer, wine, and other alcohol beverages. The cashier said jokingly, are you having a party, to which the man said yes. This is just plain WRONG, when so many children and adults are truly starving, and can barely get by on the amount of food stamps they are allowed.
    The system is shattered, and there is not a single soul trying to paste it back together, but are willing to turn a blind eye to the thievery taking place. It is ignorant, shameful, slothful, and a travesty, that this is allowed to happen.
    Is it any wonder that our once greatest Country is nearing 3rd world status?.

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  17. ConnieComment by connie57
    October 31, 2013 @ 11:33 pm

    We have a friend with a mental illness. He did get food stamps (SNAP card) for awhile. But then he decided not to renew the card because his pride was so hurt. After living on very little food for several months and having his mental illness increase dramatically, he went back on the food stamp program again. I think he is one of the deserving ones.

    The agriculture department has paid “volunteers” – ACORN types – to go door to door in poor neighborhoods begging people to apply for the food stamp program. States have been given bonus money for having the highest percentage rate increase of new people on food stamps. Those going door to door have found plenty of people who met the eligibility requirements but did not want to sign up for the program because it offended their pride.

    I think this is going overboard in trying to recruit people for the program. Public service announcements on radio or TV should be enough to let the deserving know the program is there to help them if they really need it. Further efforts than that to recruit new recipients just invites cases of fraud.

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    • freedomfighterComment by freedomfighter
      November 1, 2013 @ 12:34 am

      There are many needy, deserving people, who actually do need these programs to survive. I have no qualms with these people getting what they need and deserve. It is the unworthy, un-needing, which I detest for being on these programs.
      Back when welfare, food stamps, and Government aid programs were brought into being, they were programs for a hand up for people who came on hard times, through no fault of their own. Back in those days, people believed in working a full day, for a full days pay. Sometimes people fell through the cracks, as unemployed, or having disabilities which truly kept them from being able to work. They could enter these programs, but they were checked out to make sure of their eligibility to receive the benefits. Back then, they were a short term aid for the truly down and needy, granted for terms of 6 months. Some of the disabled, of course, were allowed to be on the programs as long as necessary.
      The trouble with the system today, is multi faceted. People are not checked to verify their illegibility, Non Citizens or illegals are allowed to sign up for the programs, and many of these lifers who know how to milk the system, receive a very good Check for the adults, and other checks for each child. The program which once was short term Hand up, has now in many instances, too many instances, become a life long support. They also in many cases make considerably more than the working class, who end up paying for their laziness, and unqualified use of the Government aid systems.
      I detest my tax dollars being used for illegals, the lazy, slothful, ungrateful, unqualified, lifetime users of the system. It needs to revert back to the days when it was a short term hand up, not a long, or lifetime hand out.
      One must ask themselves WHY would people go door to door, to get people to sign up for food stamps?. What is the logic in that?. While many will not believe it, and many won’t admit it, it is all about bringing our Country to it’s knees, by paying out money we cannot afford to pay out, paying the lazy to stay home, and paying others for their loyalty and votes, borrowing us into the trillions of dollars which we have a very difficult time just paying the interest on, the bankruptcy, and finally the collapse of our Country. This is the goal of the Community Organizer, unqualified, Communist, Muslim, Socialism seeking fraud who sits in our Presidents chair.
      2014 is our last chance to hang onto our Country. We must all vote, and retain the House, and take the Senate, so that we have a broader say in what this Faker-N-Chief does, and allows.

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  18. giant33Comment by giant33
    November 1, 2013 @ 11:26 am

    Congress sees these stories, why can’t they fix this? I guess they don’t to, why? We the workers are screwed.

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  19. reelmanComment by reelman
    November 1, 2013 @ 9:21 pm

    Not to worry…they vote demo-socialist!
    There is 100x the fraud if they cared to spend the $$$ to ferret it out instead of spending $678 million for a $1 million dollar software package …

    and racking 7 trillion more of debt while begging for a higher debt ceiling to buy yet anther election…same ole vile toxic sheep of socialism…

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  20. oldsaltydawgComment by oldsaltydawg
    November 3, 2013 @ 9:04 am

    This would not happen if they did two things.1)Make all people getting welfare of any type get an ID of the photo variety. 2) Make every one who commits this type of FRAUD to pay it back and without help that means no tax payer lawyers or pleas of any kind. They also must pay all legal fees of both sides.

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