A Georgia convenience store owner was sentenced to four years and three months in prison Monday for illegally trafficking $6.5 million in food stamps.
Tessema Lulseged was able to scheme the system by allowing his customers to exchange food stamp benefits for cash. Food stamp recipients then had cash on hand to buy restricted items. The restricted items could include alcohol, cigarettes and even drugs. The program is supposed to be used to provide food to low-income individuals and families.
“This case represents an individual systematically exploiting those in need and diverting U.S. funds intended for the needy to his own bank account,” FBI Special Agent J. Britt Johnson said. “The FBI is pleased with its role in bringing this case forward for prosecution which resulted in today’s federal prison sentence for Mr. Lulseged.”
Lulseged was able to make a profit by exchanging food stamp benefits for less than they were actually worth. He would pay his customers 60 cents for every dollar. He also required customers to purchase eligible food products during the transaction. The U.S. Department of Agriculture, Office of Inspector General and the FBI were the main agencies in charge of the investigation.
The food stamp program is the largest food-assistance welfare service in the country. It is officially known as the The Supplemental Nutrition Assistance Program (SNAP). The U.S. Department of Agriculture (USDA) administers the program in coordination with state agencies.
The size of SNAP and its potential for abuse has prompted concern among many lawmakers. According to a report from the USDA, the program has increased from 17 million participants in 2000 to nearly 47 million in 2014. The improved economy has helped decrease the number of participants in recent years. The Congressional Budget Office found, since participation hit its peak in December 2012, the number of people receiving benefits has declined by more than 1.5 million.
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