Press Release  Springfield Store Owner Pleads Guilty, Sentenced in Connection with Making More Than $100,000 in Fraudulent EBT Transactions

Springfield —  The owner of a Springfield convenience store and market has pleaded guilty and been sentenced in connection with the unlawful use of Electronic Benefit Transfer (EBT) cards and defrauding the Supplemental Nutrition Assistance Program (SNAP), commonly known as “food stamps,” Attorney General Maura Healey announced today.

Julio C. Rodriguez, age 55, of Springfield, pleaded guilty on Tuesday in Hampden Superior Court to the charges of Larceny over $250, Food Stamp Trafficking, and Access Device Fraud.

After the plea was entered, Judge Tina Page sentenced Rodriguez to 364 days in the House of Correction, suspended for two and a half years, on the charge of Food Stamp Trafficking, 364 days in the House of Correction, suspended for two and a half years, on the charge of Access Device Fraud, to run from and after the first sentence, and, on the Larceny charge, five years of probation to run concurrently with the two suspended terms and include payment of $38,000 in restitution.

“This defendant allowed customers using SNAP benefits to unlawfully exchange their food stamps for cash, ultimately making thousands of dollars in fraudulent transactions,” said AG Healey. “Our office is committed to going after those whose actions undermine the integrity of this system and drain dollars from the state and the residents who need them.” 

“Retail establishments that traffic SNAP benefits are criminal enterprises profiting from preying on low-income people,” said DTA Commissioner Jeff McCue. “DTA continues to be committed to working with our partners in the law enforcement community to identify and stop stores that traffic SNAP benefits. One out of nine people throughout the Commonwealth rely on SNAP to provide healthy food for their families – SNAP traffickers take money from those who truly depend on these benefits.”

Rodriguez was indicted on the charges in February 2015 by a Hampden County Grand Jury and arraigned in Hampden Superior Court later that month. He was arrested in December 2014 by State Police assigned to the AG’s Office after they executed a search warrant at his store, Bethania’s Fish and Meat Market, in Springfield.

After receiving a referral from the United States Department of Agriculture – Office of Inspector General (USDA-OIG) in September 2013, the AG’s Office began an investigation into the alleged fraudulent use of EBT SNAP cards at Bethania’s.       

Bethania’s is a convenience store with a fish and meat counter. The store was authorized by the USDA to accept SNAP benefits from customers for eligible items. Authorities determined that Rodriguez engaged in a scheme to traffic SNAP benefits in exchange for cash. As part of the scheme, a customer would present their EBT card to Rodriguez. Rodriguez would swipe the customer’s EBT card and enter fraudulent information on a dedicated EBT terminal that indicated that the customer’s entire purchase was for SNAP eligible groceries when in actuality, it was not. Rodriguez would furnish cash to the customer for half of the amount that he charged to their EBT card account.

For example, if an EBT card customer wanted $50 in cash, Rodriguez would use the customer’s EBT card to fraudulently enter a $100 grocery sale into the EBT terminal and would provide the customer with $50 cash. The store account would subsequently be credited with $100 from the customer’s EBT SNAP account, providing the store with a $50 profit on the transaction. The SNAP program does not allow cash to be exchanged in lieu of benefits.

Authorities estimate that Rodriguez made more than $100,000 worth of fraudulent transactions between January 2013 and December 2014. Authorities also determined that Rodriguez obtained approximately 50 percent in illegal profits from those transactions.

In July 2013, the Department of Transitional Assistance (DTA) entered into a State Law Enforcement Bureau (SLEB) agreement with the United States Department of Agriculture – Food and Nutrition Service (USDA-FNS). The SLEB agreement enabled the Commonwealth to utilize state and local law enforcement agencies to investigate and pursue SNAP EBT fraud and abuse, including SNAP trafficking. Under the agreement, DTA has the authority to conduct investigations into possible SNAP fraud and Massachusetts law enforcement will be able to obtain EBT benefits from USDA-FNS for purposes of undercover investigations. To date, DTA has signed sub-agreements with local law-enforcement across the Commonwealth, including the Attorney General’s Office and the Springfield Police Department.

This case was prosecuted by Assistant Attorney General Erika Anderson in the AG’s White Collar/Public Integrity Division. The investigation was handled by Financial Investigator Stephen Bethoney of the AG’s Financial Investigations Division, Massachusetts State Police assigned to the AG’s Office, the AG’s Digital Evidence Lab, the Springfield Police Department, and State Police assigned to the Hampden County District Attorney's Office. Investigators from the Department of Transitional Assistance (DTA) and the U.S. Department of Agriculture – Office of Inspector General also assisted in the investigation.

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