San Francisco prosecutors have charged 11 individuals in a $4 million fraud scheme targeting the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps. According to SF Standard, store owners and employees from five markets exploited Electronic Benefits Transfer (EBT) cards, converting them into cash instead of providing food.
Investigators found that “runners” roamed areas like Chinatown and the Tenderloin, offering EBT cardholders cash in exchange for their benefits. These runners then escorted them to stores where clerks processed fake purchases of $100 to $300. Instead of groceries, the cardholders received half the transaction amount in cash, while store owners pocketed the rest, as described by SFist.
The largest case involves three Chinatown markets—Changyi Trading, Fu Yuan Food Market, and Da Chang Yuan. Prosecutors say these businesses facilitated over $3 million in fraudulent transactions. Authorities have charged Guo Quian Lai, Quingyuan He, Xinyi Lei, and Mandy To with conspiracy, misappropriation of public funds, and grand theft.
In another case, H&L Super Market in the Tenderloin allegedly defrauded SNAP of over $500,000. Hoang Le, Runcheng He, and Yulian Luo now face charges. Clement Dung Market in the Richmond District was also linked to over $500,000 in fraud, with Dung Ngoc Huyhn, Kuo Hon Wong, Conhi Truong, and Hau Dinh Ho accused of participating in the scheme.
When investigators visited H&L Super Market, they found it shuttered. A blacked-out “We accept EBT” sign was still visible on its storefront. Nearby shop owners said the business had been closed for months.
District Attorney Brooke Jenkins stressed that her office is determined to protect public assistance programs. “Public benefits must serve their intended purpose, which is to provide food for those in need,” she stated, as reported by SF Standard.
Federal agencies, including the U.S. Department of Agriculture and the San Francisco Human Services Agency, assisted in the investigation. Officials warn that similar fraudulent schemes could threaten resources meant for low-income families.
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