New York Field Office of the Federal Bureau of Investigation (?FBI?), announced the unsealing of a Superseding Indictment charging six individuals in connection with a sprawling fraud and bribery scheme that generated over $66 million in unauthorized transactions under the Supplemental Nutrition Assistance Program (?SNAP?)?colloquially known as food stamps.

his is one of the largest food stamp frauds in U.S. history. The defendants?MICHAEL KEHOE, MOHAMAD NAWAFLEH, OMAR ALRAWASHDEH, GAMAL OBAID, EMAD ALRAWASHDEH, and ARLASA DAVIS?are charged with conspiracy to steal government funds and to misappropriate U.S. Department of Agriculture (?USDA?) benefits, among other charges. DAVIS, a USDA employee, is additionally charged with bribery and honest services fraud.

According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:

The SNAP program uses federal tax dollars to help low-income households purchase food. SNAP recipients use Electronic Benefit Transfer (?EBT?) cards?similar to debit cards?to buy food at participating stores. Those stores, which get license numbers from the USDA, use special EBT terminals to swipe the EBT cards. When a SNAP recipient swipes their EBT card, the system verifies the transaction and electronically deducts the purchase amount from the recipient?s account. The corresponding federal funds are then transferred to the store?s bank account.

Starting in 2019, KEHOE orchestrated a network that supplied approximately 160 unauthorized EBT terminals to stores across the New York area to illegally process more than $30 million in EBT transactions. Working with his codefendants NAWAFLEH, OMAR ALRAWASHDEH, OBAID, and EMAD ALRAWASHDEH, KEHOE submitted approximately 200 fraudulent USDA applications, misappropriating USDA license numbers and, in some cases, doctoring application documents, to obtain EBT terminals for unauthorized stores?including smoke shops and other ineligible businesses.

Critical to the scheme was ARLASA DAVIS, a longtime USDA employee who worked within the very division of the USDA responsible for identifying SNAP fraud. DAVIS abused her privileged access to federal systems to sell hundreds of EBT license numbers enabling over $36 million in fraudulent SNAP redemptions at unauthorized stores. DAVIS photographed handwritten lists of license numbers intended for qualifying stores with her personal cellphone and funneled them to an intermediary who sold them to co-conspirators, including NAWAFLEH, OMAR ALRAWASHDEH, EMAD ALRAWASHDEH, and OBAID, who then used those license numbers to fraudulently obtain EBT terminals for stores that were not authorized by the USDA to process SNAP transactions. In return, DAVIS received substantial bribes that were disguised in communications as, among other things, ?birthday gifts? and ?flowers.?

KEHOE, 46, of Long Island, New York; NAWAFLEH, 34, of the Bronx, New York; OMAR ALRAWASHDEH, 37, of the Bronx, New York; OBAID, 39, of the Bronx, New York; EMAD ALRAWASHDEH, 37, of the Bronx, New York; and DAVIS, 56, of Gardiner, New York, are each charged with one count of conspiracy to steal government funds and misappropriate USDA benefits, which carries a maximum sentence of five years in prison, one count of theft of government funds, which carries a maximum sentence of 10 years in prison, and one count of misappropriation of USDA benefits, which carries a maximum sentence of 20 years in prison. DAVIS is additionally charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, one count of bribery, which carries a maximum sentence of 15 years in prison, and one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison. NAWAFLEH is additionally charged with one count of failure to appear, which carries a maximum sentence of 10 years in prison.

The maximum sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. (Crown heights info)

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