SNAP Fraud Bust
Federal Agents Bust Alleged SNAP Fraud Ring at LA Store, USDA Issues Dozens of Violations
Federal agents and Los Angeles police have arrested Jesse Cervantes-Gomez, 30, a cashier accused of running a SNAP fraud scheme at a Los Angeles store that processed over $730,000 in suspicious food-stamp purchases in a single year, according to FOX 11. Cervantes-Gomez allegedly paid cash kickbacks to welfare recipients for fake purchases and directly traded SNAP benefits for cash — a crime that can carry up to 20 years in federal prison.
The bust triggered a sweeping USDA crackdown. Following the arrest, the agency issued formal violation notices to 33 SNAP-authorized retailers across Los Angeles, according to News3LV. Six were charged with directly trafficking benefits for cash. Twenty-seven were cited for exchanging SNAP funds for prohibited items like alcohol and vapes.
How a $730,000 Red Flag Brought Down the Store
Investigators first flagged the store after it processed far more in SNAP purchases than nearby competitors, according to KATV. Undercover federal agents then posed as fraudulent SNAP recipients over several weeks. Cashier Cervantes-Gomez allegedly rang up large, fake food purchases on their benefit cards. He then returned roughly 50 cents in cash for every dollar charged — a scheme sometimes called "benefit trafficking."
On the day of the arrest, agents from the USDA Office of Inspector General and Homeland Security Investigations moved in during what was supposed to be another kickback exchange. LAPD officers provided backup. Cervantes-Gomez was arrested outside the store, according to KOMO News. The USDA's acting administrator called the fraud "a direct attack on American taxpayers and the vulnerable families who rely on SNAP to survive."
USDA Hits Dozens More LA Retailers With Violations
The crackdown did not stop with one arrest. The USDA Food and Nutrition Administration issued charge letters to 33 Los Angeles retailers, according to Turn To 10. Retailers hit with these notices face permanent removal from the SNAP program and heavy financial penalties. In food-poor neighborhoods like Skid Row, losing authorized stores could make it harder for low-income families to buy groceries.
Federal officials made clear this was a deliberate escalation. "The days of defrauding government benefit programs are over," said Bill Essayli, First Assistant U.S. Attorney for the Central District of California. "We're talking federal prison sentences, not state misdemeanor charges."
Two Brothers Plead Guilty to Separate $760,000 SNAP Scheme
The LA bust was not the only SNAP fraud case making headlines. The same day, two brothers — Marian Ovidiu Dumitru, 37, and Catalin Dumitru, 39 — pleaded guilty in North Carolina to a $760,000 multistate scheme, according to WGME. Both are illegal aliens from Romania. They installed skimming devices at ATMs and point-of-sale terminals to steal EBT card data from benefit recipients in Massachusetts, New Jersey, and other states.
The brothers used the stolen card data to clone EBT cards. They then bought bulk goods — coffee, baby formula, energy drinks — and resold them for cash. "These individuals came to the United States illegally and preyed on some of our most vulnerable citizens," said U.S. Attorney Russ Ferguson. Both brothers face up to 20 years in federal prison.
California's SNAP Program Remains a Top Federal Target
California runs the largest SNAP program in the country, serving about 5.5 million people at a cost of $12.5 billion. That scale makes it a prime target for fraud — and for federal scrutiny. Between 2022 and early 2026, thieves stole more than $310 million from California EBT accounts, mostly through skimming devices, according to News Channel 9. Losses once hit $20 million per month before falling to $4 million monthly after the state rolled out chip-enabled EBT cards.
Federal officials have ramped up pressure. President Trump signed an executive order in March 2026 creating a White House task force focused on eliminating benefits fraud, chaired by Vice President JD Vance. The DOJ's National Fraud Enforcement Division is now coordinating aggressive sweeps across the country. Assistant Attorney General Colin M. McDonald warned: "We will come after you with the full force of federal law."
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