The manager of a grocery store in Birmingham pleaded guilty to wire and tax fraud on Wednesday in federal court for his illegal manipulation of the Supplemental Nutrition Act Program totalling more than $4.6 million.
The USDA distributes SNAP benefits to qualified recipients through an electronic benefit transfer card (EBT), which works similarly to a debit card. Between November 2014 and March 2017, Motley admitted to illegally exchanging EBT SNAP benefits for cash and prohibited goods.
SNAP benefits were used 52 times more at Big B Food Mart than at nearby retailers of comparable size during this period.
As a result of his SNAP programme manipulation, Motley stole nearly $3.7 million from the Big B Food Mart’s bank account.
OMAR MOTLEY, 42, of Birmingham, entered a guilty plea to one count of tax fraud and one count of wire fraud before U.S. District Judge Karon O. Bowdre.
Motley agreed to pay $847,001.00 in restitution to the IRS and $3,815,599.98 to the USDA, which oversees the Supplemental Nutrition Assistance Program, also known as food stamps (SNAP). Motley will be sentenced on November 8, 2022.
Motley managed Big B Food Mart in Birmingham, Alabama, at 4012 24th Street North, which was approved by the USDA to accept food stamp benefits. A federal grand jury charged Motley in March 2021.
The USDA provides SNAP benefits to qualified users via an electronic benefit transfer card (EBT), which functions similarly to a debit card.
Motley admitted to illegally exchanging EBT SNAP benefits for cash and prohibited goods between November 2014 and March 2017.
SNAP benefits used at Big B Food Mart were 52 times higher than at nearby retailers of comparable size during this period.
Motley stole nearly $3.7 million from the Big B Food Mart’s bank account as a result of his SNAP programme manipulation.
Motley also admitted to underreporting his 2015 SNAP benefit redemption revenue to the IRS.
According to the evidence presented by the United States during the hearing, Motley significantly inflated the amount of Big B Food Mart’s cost of goods sold on this return; as a result, his personal income tax burden was greatly reduced.
The IRS has suffered a tax loss of $847,001.00. The maximum penalties for tax evasion are three years in prison and a $250,000 fine.
The maximum sentence for wire fraud is $250,000 in fines and 20 years in prison.
Read more:-
- The Federal Government Desires to Increase the Number of Internet Merchants Who Take Food Stamps.
- What to Do When the Snap Emergency Allotment for Your State Has Ended
- What to Do When the Snap Emergency Allotment for Your State Has Ended
U.S. Attorney Escalona praised the efforts of our federal colleagues who fought to ensure that these public dollars were used for their intended purposes, stating that the SNAP funding provided by Congress funds critical USDA initiatives to assist low-income families.
United States Attorney Prim F. Escalona, Acting Special Agent-in-Charge Salina Walker of the U.S. Department of Agriculture Office of Inspector General Investigations, and Lisa Fontanette, Assistant Special Agent-in-Charge of the Internal Revenue Service’s Criminal Investigation Division, announced the guilty plea. It was quite emphasized.
