Press Release  Lawrence Man To Serve 4 to 6 Years for Trafficking Food Benefits

Salem, Massachusetts — A father and son pleaded guilty yesterday in Salem Superior Court to a scheme that defrauded the federal food stamps program out of $1.5 million.

Cristian Pena, the owner of Bonao Market, a convenience store located at 169 Newbury Street, Lawrence, MA, pleaded guilty to Trafficking in EBT Benefits; Larceny Over $250; and Money Laundering. Judge Mary-Lou Rup sentenced him to four to six years in state prison.  Mr. Pena, a Dominican national, will be deported upon completion of his sentence.

His father and co-defendant, Ramon Pena, a clerk of Bonao Market,  also pleaded guilty to Trafficking in EBT Benefits; Larceny Over $250; and Unlicensed Possession of A Firearm without an FID Card. Justice Mary-Lou Rup ordered him placed on probation for two years.  As part of the agreed-to plea agreement, the case against Esperanza Ortiz, another clerk of Bonao Market, was dismissed.

“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.”

Had the case proceeded to trial, Essex County Assistant District Attorneys Philip Mallard and Christina Ronan would have proven that the defendants trafficked at least $990,000 worth of SNAP benefits over a three year period, and laundered these proceeds through various bank account transactions. At the time of the raids and arrests, Ramon Pena was also in possession of a firearm located in the store, for which he was not licensed.

Beginning in June 2012, the Essex District Attorney's Office, together with the United States Department of Agriculture Office of the Inspector General (USDA-OIG) and Massachusetts State Police initiated an investigation into suspected “trafficking” of food stamp benefits. Trafficking in food stamp benefits is when a merchant allows an individual to obtain cash from their food benefits for a fee which is strictly prohibited.  The investigation, which involved undercover purchases, review of SNAP transaction records, and analysis of financial records of the store culminated in the June 10, 2015, raids of four Lawrence convenience stores, including Bonao Market, the arrest of six individuals, including Cristian Pena and Ramon Pena, and the seizure of over $60,000 dollars in laundered proceeds derived from these crimes.

During the period of the investigation, Bonao Market conducted $1.5 million dollars in SNAP transactions, approximately $990,000 of which were individual SNAP transactions for over $100. Bonao Market is a small convenience store with no carriages, low inventory, limited shelf-space, and a small checkout area. As such, it was practically impossible to purchase $100 worth of groceries at Bonao Market. Additionally, analysis of the records for the Bonao Market operating account revealed that the store had expended far less than $300,000 for inventory. 

USDA-OIG, 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 owner of the other stores raided in June 2015, Martin Santiago, awaits trial in Salem Superior Court.

 ADAs Mallard and Ronan praised the work of the Massachusetts State Police Troopers, and the USDA-OIG Special Agents who investigated the case.

Cristian Pena was represented by Attorney Paul Farina.  Ramon Pena was represented by Attorney Robert Ciampitti.

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