A sweeping federal investigation has led to the arrest of six individuals, including a U.S. Department of Agriculture (USDA) employee, accused of orchestrating a $66 million scheme to exploit the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps.
The suspects—Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh and USDA staffer Arlasa Davis—face criminal charges related to conspiracy, bribery and fraud, according to a press release issued by the U.S. attorney’s office.
The charges follow a joint investigation involving the FBI, USDA and federal prosecutors.
Officials say the operation began in 2019 when Kehoe allegedly constructed a network that distributed more than 160 unauthorized electronic benefit transfer (EBT) cards.
These cards were provided to stores in the New York area to unlawfully process SNAP transactions, generating more than $30 million in improper claims.
In addition to fraudulent card use, the group allegedly submitted falsified USDA applications and used stolen license numbers to register unauthorized retailers. Investigators report that some of the documents were altered in order to gain approval from the USDA.
According to the indictment, the operation relied in part on access to confidential government information, which was allegedly sold to the group by Davis.
U.S. Attorney Perry Carbone said Davis’s actions undermined a vital safety net.
“This fraud was made possible when USDA employee Arlasa Davis betrayed the public trust by selling confidential government information to the very criminals she was supposed to catch,” he stated, per the media release.
“Their actions undermined a program that vulnerable New Yorkers depend on for basic nutrition.”
He added, “These charges should be a reminder that those who exploit anti-poverty programs for personal gain will be held accountable for their crimes.”
On Friday, Agriculture Secretary Brooke Rollins addressed the case in a segment on Fox Business Network’s “Mornings with Maria,” describing the bust as one of the largest enforcement operations involving SNAP funds.
“At USDA, we are hyper-focused… on rooting out that waste, fraud and abuse, and… yesterday was, if not the largest, one of the largest stings,” Rollins said.
She emphasized that the arrests reflect a new approach to government oversight under President Trump.
“This is a new day, and President Trump promised, as he was traveling across the country over the last few years, that it would not be the government that we know,” she stated.
Rollins warned that more enforcement actions are on the way.
“That is no longer going to be allowed here in Washington, and with these programs like the food stamp program,” she said. “So we’re going to move forward… This is not the ‘one and only.’ There are going to be many more to come.”
“It’s just the tip of the spear,” Rollins added. “We’re trying to lock it down right now to ensure that it doesn’t keep happening. But when you’ve got employees that basically don’t follow the law, then we’ve got to fix it, and that’s what we’re doing.”
