Press Release  Four Lawrence Stores Raided in $2.5 Million EBT SNAP Fraud Scheme

Lawrence, Massachusetts — Six people were arrested this morning for allegedly defrauding state and federal food stamps and cash assistance programs out of approximately $2.5 million.  Lawrence Police, Massachusetts State Police, and the U.S. Department of Agriculture Office of the Inspector General executed search warrants at 4 stores in Lawrence this morning under the direction of the Essex County District Attorney’s Office following a joint investigation.

This morning investigators raided Gil’s /Noelia, 71 E. Haverhill Street; Santiago Convenience, 393 Lowell Street; El Leon Rojo, 352 Hampshire Street, owned and operated by Martin Santiago; and Bonao Market, 169 Newbury Street, owned and operated by Cristian Pena.

Beginning in June 2012, the Essex District Attorney's Office, together with the United States Department of Agriculture Office of the Inspector General initiated an investigation into suspected “trafficking” of food stamp benefits.  Trafficking food stamps is when a merchant allows an individual to obtain cash from their food benefits for a fee which is strictly prohibited.

“This is not a victimless crime.  We all pay the price when the greedy few defraud the taxpayers out of scarce public resources that are meant to feed, house and clothe our most needy residents,” District Attorney Jonathan W. Blodgett said.  “Working with our federal partners, we will continue to investigate and prosecute this type of fraud.”

USDA Office of Inspector General, Special Agent-in-Charge William G. Squires Jr. stated, “The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigation with the Essex County District Attorney’s Office and the Massachusetts State Police-Transportation Drug Unit has brought to justice several individuals who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our state and local law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”

The following individuals were arrested and are expected to be arraigned today at 2:00 pm in Lawrence District Court:

• Martin SANTIAGO, 47, 252 Washington Street, Haverhill: Trafficking in EBT Benefits; Larceny Over $250 and Conspiracy to Commit Larceny, Money Laundering.
• Cristian PENA, 44, 32 Saratoga Street, Lawrence: Trafficking in EBT Benefits; Larceny Over $250; Conspiracy to Commit Larceny; Money Laundering; Unlicensed Possession of a Firearm without an FID Card; and Improper Storage of a Firearm.
• Esperanza ORTIZ, 47, 32 Saratoga Street, Lawrence: Trafficking in EBT Benefits; Larceny Over $250; Conspiracy to Commit Larceny; and Money Laundering.
• Ramon PENA, 66, 32 Saratoga Street, Lawrence: Trafficking in EBT Benefits; Larceny Over $250; Conspiracy to Commit Larceny; Money Laundering; Unlicensed Possession of A Firearm without an FID Card; and Improper Storage of a Firearm.
• Two other clerks employed by SANTIAGO were charged with Conspiracy to Commit Larceny.

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