Federal authorities have arrested six individuals, including a U.S. Department of Agriculture (USDA) employee, in connection with a large-scale fraud and bribery scheme involving the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps.
The group is accused of misappropriating over $66 million in taxpayer funds through unauthorized transactions and fraudulent activities. The defendants—Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh, and USDA employee Arlasa Davis—face charges of conspiracy to steal government funds and misappropriation of USDA benefits. According to the indictment, beginning in 2019, Kehoe established a network that distributed approximately 160 unauthorized electronic benefit transfer (EBT) cards to various stores in the New York area, facilitating illegal transactions totaling more than $30 million.
Arlasa Davis, the USDA employee, allegedly sold confidential government information to the co-conspirators, enabling them to exploit the SNAP program further. The group is also accused of creating fraudulent USDA applications, misusing license numbers, and falsifying documents to improperly authorize stores.
U.S. Attorney Perry Carbone emphasized the breach of public trust, stating that Davis’s actions undermined a program essential for vulnerable populations. He warned that exploiting anti-poverty programs for personal gain would lead to accountability and legal consequences.
Agriculture Secretary Brooke Rollins described the operation as one of the largest stings in USDA history and indicated that this case is just the beginning of broader efforts to eliminate waste, fraud, and abuse within federal programs. She affirmed the department’s commitment to partnering with law enforcement agencies to ensure the integrity of programs like SNAP and to uphold the promises made to taxpayers.
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