The Oregon Department of Justice accused 19 people for allegedly arranging a plot to defraud the Supplemental Nutrition Assistance Program (SNAP) of more than $500,000.
The suspects allegedly exploited stolen Electronic Benefits Transfer (EBT) accounts to buy infant formula, which was then sold on the black market.
Attorney General Dan Rayfield emphasized the gravity of the crime, stating, “This isn’t just theft – it is an assault on our most vulnerable communities. These people took advantage of a program meant to support families in need.”
“Families, older adults and people with disabilities who can’t afford groceries and basic items. The integrity of public assistance programs is vital, and my office will continue to take action against anyone who seeks to exploit them for personal gain,” he also added.
The Oregon Department of Justice’s Criminal Justice Division conducted the investigation, which discovered that the suspects accessed EBT accounts using skimming devices.
The baby formula was stored in Oregon and Washington before being packed and sent to California for sale.
The FBI defines skimming as the illegal installation of equipment on or within ATMs, other payment terminals, or fuel pumps to capture card data and record cardholders’ PIN entries.
Retail partners notified a Portland Police detective to suspiciously large purchases of infant formula using SNAP benefits cards, revealing the plan.
Concerns were expressed that these cards were being used illegally, affecting vulnerable community people who rely on these benefits.
Federal investigators, working with the Oregon Department of Justice, initiated an investigation that resulted in the arrest of 17 people in October for their involvement in the operation.
The 19 indicted by the Oregon DOJ were linked by addresses in Portland and Gresham, with some also mentioned in federal indictments last year.
The accused carried out their scam at various retailers, including Fred Meyer, Safeway, and Winco. Surveillance footage from Fred Meyer helped identify the suspects.
The grand jury indicted the defendants for money laundering, theft, aggravated theft, identity theft, and aggravated identity theft. After being arrested on outstanding warrants, they will be arraigned, and the case will proceed.
