‘Operation Hungry Lion’ Results in 12 Arrests for Defrauding Food Stamp Program; Taxpayer Cash Misused

Store owners allowed benefits to be used for cigarette and alcohol purchases; kept percentage of taxpayer money

MINEOLA, NY – Nassau County District Attorney Kathleen Rice announced today that a joint investigation with local, state, and federal agencies has resulted in criminal charges against seven men and five businesses that regularly scammed the federal Food Stamp program. These violations included accepting food stamps for alcohol and cigarettes and illegally receiving cash kickbacks from bogus food stamp transactions.

Rice said that the investigation began in July 2007 with a tip from a confidential informant to a member of the Long Beach Police Department’s Detective Division, and continued with the assistance of the Nassau County Department of Social Services, the New York State Police, the United States Department of Agriculture, Food and Nutrition Service, and the New York State Office of Temporary and Disability Assistance State Law Enforcement Bureau.

The two-year investigation revealed a litany of Food Stamp program violations. Undercover investigators from the District Attorney’s Office were able to get cash in exchange for their food stamp benefits. For example, employees at the five Nassau locations would charge a food stamp benefit card $250, keep $100, and hand the undercover $150. Undercover investigators were also able to buy unauthorized food stamp items such as beer, cigarettes, phone cards, and CDs with their benefits card.

“Food stamp benefits are meant for members of our society who need assistance putting food on their family’s table, not for store owners to make a quick buck or benefit recipients to buy alcohol and cigarettes,” Rice said. “My office will continue to pursue criminals who line their pockets at the expense of Nassau County taxpayers.”

“We will not tolerate any abuse of taxpayer money,” said Nassau County Executive Tom Suozzi. “We will do everything we can to ensure that food stamp benefits are used to help the most vulnerable in our communities, rather than to fill the wallets of business owners.”

The dollar figures listed below are solely the result of transactions with the undercover investigator. Charged in the roundup is:

Jose Toribio, 30, of Queens, is the owner of J & J Deli-Grocery in Long Beach. Both Toribio and his business are charged with Misuse of Food Stamps, Food Stamp Program Coupons, Authorization Cards and Electronic Access Devices as a D felony, and Grand Larceny in the Third Degree. Toribio faces up to seven years in prison and is represented by Eli Jaghab, Esq.

J & J Deli-Grocery defrauded the food stamp program of $6,223 in unauthorized purchases and cash exchanges.

Prithipal Bhatti, 47, of Syosset, is the current manager and former owner of Penn Convenience Deli in Hempstead. Both Bhatti and his business are charged with Misuse of Food Stamps, Food Stamp Program Coupons, Authorization Cards and Electronic Access Devices as a D felony, and Grand Larceny in the Third Degree. Bhatti faces up to seven years in prison and is represented by Edward McCabe, Esq.

Penn Convenience Deli defrauded the food stamp program of $5,594 in unauthorized purchases and cash exchanges.

Chand Subhash, 60, of Hempstead, a clerk at Penn Convenience Deli, has been charged with Section 147 of the Social Service Law and Petit Larceny, both misdemeanors. A warrant has been issued for his arrest. Subhash currently has an open case regarding the sale of alcohol to a minor. Subhash faces up to one year in jail.

Epifanio Vargas, 36, of Freeport, is the past owner of Epy’s Deli in Hempstead. Both Vargas and his business are charged with Misuse of Food Stamps, Food Stamp Program Coupons, Authorization Cards and Electronic Access Devices as a D felony, and Grand Larceny in the Third Degree. Vargas faces up to seven years in prison.

Epy’s Deli defrauded the food stamp program of $3,887 in unauthorized purchases and cash exchanges.

Santiago Ramirez, 52, of Port Jefferson, is the owner of Ramirez Grocery in Hempstead. Both Ramirez and his business are charged with Misuse of Food Stamps, Food Stamp Program Coupons, Authorization Cards and Electronic Access Devices as a D felony, and Grand Larceny in the Third Degree. Ramirez faces up to seven years in prison and is represented by Robert Race, Esq.

Ramirez Grocery defrauded the food stamp program of $3,810 in unauthorized purchases and cash exchanges.

Juan Martinez, 47, of Oceanside, a clerk at Ramirez Grocery, has been charged with Misuse of Food Stamps, Food Stamp Program Coupons, Authorization Cards and Electronic Access Devices as an E felony, and Grand Larceny in the Fourth Degree. Martinez faces up to four years in prison and is represented by Robert Race, Esq.

Felix Batista, 39, of Hempstead, is the vice president and owner of La Frontera in Freeport. Both Batista and his business have been charged with Misuse of Food Stamps, Food Stamp Program Coupons, Authorization Cards and Electronic Access Devices as an E felony, and Grand Larceny in the Fourth Degree. Batista faces up to four years in prison and is represented by Angela Nwadiogbu, Esq.

La Frontera defrauded the food stamp program of $2,493 in unauthorized purchases and cash exchanges.

If convicted, each business may lose its lottery and liquor licenses, as well as being disqualified from being an authorized retailer participating in the Food Stamp Program.

“We are committed to increasing access to the food stamp program for those who are eligible, but can only do so if we can ensure the public and those we serve that the program is of the highest integrity,” said Kristin Proud, Deputy Secretary for Human Services, Technology and Operations, who is currently overseeing the Office of Temporary and Disability Assistance. “We are grateful to our partners in Nassau County for their efforts and will continue to work with them in the future.”

Handling the case for the DA’s Office is ADA Christine Burke of the Government/Consumer Frauds Bureau.

The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.