Valley stores caught cheating government food stamp system

PHOENIX - Many Arizona families rely on the government food stamp program to help make ends meet.

In fact, one in six Arizonans are now getting the government assistance, including many who never thought they would need help.

They're Valley residents who have a serious medical condition or who recently lost a job, people like John and Cris Popham.

"I always figured food stamps were for the other guy and I was above that. Wrong," said John.
 
The family gets a few hundred dollars a month to buy nutritious foods like milk, eggs and meat at qualifying stores.

That's how the program usually works, but the ABC15 Investigators found some stores cheating and taking your tax money illegally.

VALLEY STORES CAUGHT CHEATING THE SYSTEM

The United States Department of Agriculture runs the food assistance program called Supplemental Nutrition Assistance Program or SNAP.

ABC15, along with the Scripps Howard News Service, got the USDA records and went through the data.

Check out the full SHNS investigation
 
We found 24 stores in the Phoenix area permanently kicked out of the SNAP program in the last five years.

A TYPE OF ILLEGAL TRAFFICKING

The USDA says 99-percent of the time, stores are kicked out of the program due to illegal trafficking.

That typically means an EBT card is swiped, say for $100 in groceries, but, there are no groceries. The store keeps $50 and the cardholder gets $50 -- and all of it is your tax money.

The USDA says any store caught cheating is kicked out of the SNAP program permanently.

A store can be let back in the program if there is a change of ownership, but we found something more.

THE ABC15 INVESTIGATORS DIG DEEPER

Records show at least one Valley store permanently disqualified is accepting the EBT cards for food assistance again.

Full list of stores in SNAP system

USDA records show Speedy Pit Stop on 7th Street in central Phoenix was disqualified from the SNAP program six years ago.

The current owner tells the ABC15 Investigators he did not own the store at the time. He says his LLC bought it after that date.

The USDA confirms the store was kicked out for a type of illegal trafficking in 2006, and claims information supplied to the agency does show there are new owners.

But City of Phoenix records we reviewed show the owner at that address was the same, then and now.

The USDA says fighting fraud is a priority and it is outraged by anyone taking advantage of the benefit. According to the USDA website, SNAP fraud is down from 4 cents on the dollar, to just 1 cent.

But Michael Turner with the Cato Institute, which researches government policies, blames part of the fraud on a lack of oversight.

LACK OF PROPER OVERSIGHT BLAMED

Right now the SNAP program includes 233,000 stores nationwide.

The USDA has just 100 inspectors.

The department says after our investigation, it has re-examined the case ABC15 brought to its attention and will follow-up.

Report fraud you see to the USDA and to the Arizona Department of Economic Security .

"GOOD" PROGRAM DEFENDED

All of this concerns Brian Simpson with the Association of Arizona Food Banks . Simpson sees the increased need for food assistance everyday.

He's concerned about what he calls a great program tarnished because of a small amount of fraud.

The ABC15 Investigators were with Simpson at the Rio Vista Center in south Phoenix as a line of people waited to get food, fresh produce and clothes.

Rio Vista also offers help to those looking for a job, and they offer assistance to people qualifying for the SNAP food program.

Simpson says the SNAP program works efficiently.

He says any fraud represents a very, very small percentage of the people who are getting help from the program.

So while he believes any fraud should be stopped, Simpson hopes it doesn't paint a picture for the whole program.

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