DA: Couple Got $54K In Bogus Food Stamp Credits
Posted on Thursday, 2 of October , 2008 at 5:14 pm
MANHATTAN—A Bronx husband and wife have been indicted for allegedly using their public assistance (PA) benefit cards to fraudulently obtain $54,725 in food stamp credits from 17 Manhattan grocery stores.
Edward Fiammetta, 46, and Eugenia Fiammetta, 47, have been charged with multiple counts of grand larceny, criminal possession of stolen property and scheme to defraud. The crimes charged in the indictment occurred during the periods of May 28, 2005 to June 15, 2005 and June 21, 2006 to Nov. 28, 2006.
Throughout New York City and New York State, recipients of PA benefit programs, such as food stamps and cash assistance, use Electronic Benefit Transfer (EBT) cards to access the government benefits in their accounts. EBT cards are debit cards issued by the New York City Human Resources Administration (HRA).
Food stamp recipients can use EBT cards at food store checkouts in order to pay for groceries. Individuals that receive cash assistance can use their EBT cards at ATMs to obtain cash. In both cases, the card is used like a bank debit card; an individual must swipe the card and then enter a personal identification number (PIN); each EBT card also has a 19-digit card number, which connects to the recipient’s Chase EBT account. When making a purchase at a grocery store, the food stamp recipient swipes an EBT card in an EBT machine, and enters a PIN. The cost of the food is automatically subtracted from the recipient’s Chase EBT account and the money is electronically transferred to the retailer’s Chase EBT account.
Manhattan district attorney Robert Morgenthau said the investigation leading to the indictment revealed that the Fiammettas each received full PA benefits (Medicaid, food stamps, and cash assistance) prior to 2004, including EBT cards. However, during 2005 and 2006, while the FIAMMETTAS were no longer receiving public assistance benefits, a female called 17 grocery stores on the Upper West Side and pretended to be an employee from the EBT agency.
During a typical call, this individual spoke with a grocery store employee, falsely informed the worker that the store’s EBT machine was not working properly, and then instructed the person to enter specific numbers and press certain buttons on the keypad to “fix” the machine. Prosecutors said these numerals were either Edwrd or Eugenia Fiammetta’s 19-digit card numbers. The grocery store worker would then inadvertently activate a transfer of food stamp credits from the retailer’s Chase EBT account to the Fiammettas’ — formerly empty and dormant — Chase EBT accounts.
The defendants never swiped their EBT cards at the businesses they allegedly called and victimized, Morgenthau said. Instead, they accessed the money in their personal Chase EBT accounts by selling their food stamp credits to six discount food stores, mainly located in Upper Manhattan. The Fiammettas’ food stamp credits or funds, which were fraudulently obtained from victim stores, were transferred via their EBT card number and PIN to the discount food store’s Chase EBT account in exchange for cash. No food was purchased. Instead, the discounting food stores rang up phony purchases and the money was transferred directly to the Fiammettas, Morgenthau said.
After the HRA observed irregularities on the defendants’ food stamp profiles, the administration alerted the New York City Police Department and the Manhattan District Attorney’s Office. The investigation is continuing. 10-2-08
Category: Business, Courts, Crime, Government, New York State
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