Perry Carbone, Attorney for the United States, announced the unsealing of a Superseding Indictment involving six individuals in a large-scale fraud and bribery scheme. The case concerns unauthorized transactions exceeding $66 million under the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. The defendants include Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh, and Arlasa Davis. They face charges related to conspiracy to steal government funds and misappropriate U.S. Department of Agriculture (USDA) benefits. Davis, an employee of USDA, is also charged with bribery and honest services fraud.
U.S. Attorney Perry Carbone stated: “Michael Kehoe and his co-conspirators misappropriated tens of millions of dollars in taxpayer funds meant to help low-income families put food on the table.” He added that Davis betrayed public trust by selling confidential information to criminals she was supposed to monitor.
Charmeka Parker from USDA-OIG expressed appreciation for law enforcement collaboration in addressing allegations against government employees exploiting taxpayer-funded programs.
Christopher G. Raia from the FBI commented: “Arlasa Davis...is alleged to have abused her position...to assist her co-conspirators in exploiting the SNAP program." He emphasized that such exploitation undermines safeguards ensuring SNAP assistance reaches eligible families.
The indictment details how SNAP uses federal tax dollars for low-income households' food purchases via Electronic Benefit Transfer (EBT) cards at authorized stores. Starting in 2019, Kehoe allegedly orchestrated unauthorized EBT terminals across New York stores for over $30 million in illegal transactions. Alongside his codefendants Nawafleh, Omar Alrawashdeh, Obaid, and Emad Alrawashdeh, he submitted fraudulent USDA applications for EBT terminals at unauthorized businesses.
Davis reportedly used her access within USDA systems to sell EBT license numbers enabling $36 million in fraudulent redemptions at unauthorized stores. She allegedly received bribes disguised as "birthday gifts" or "flowers."
The defendants face various charges carrying maximum sentences ranging from five to 20 years imprisonment per count. Any sentencing will be determined by the judge.
Carbone praised USDA's and FBI's work on this investigation handled by the Office’s General Crimes Unit with Assistant U.S. Attorneys Georgia V. Kostopoulos and Joe Zabel leading prosecution efforts.
The charges are accusations; defendants are presumed innocent until proven guilty.
