Fresno bakery workers face federal charges for allegedly defrauding food program
Two Fresno bakery workers have been indicted by the U.S. Attorney’s Office for allegedly allowing public assistance recipients to exchange their food benefits for cash.
Evaristo Gomez and Maria Munoz, employees at El Ranchito Bakery in central Fresno, face charges of conspiracy to commit fraud, wire fraud and unauthorized use and possession of benefits.
Across the country, the U.S. Department of Justice has increasingly been prosecuting retailers for defrauding the federally funded Supplemental Nutrition Assistance Program, or SNAP. The DOJ has filed cases in New Jersey, Illinois, and Connecticut.
The U.S. Government Accountability Office estimates about $1 billion in benefits are illegally diverted annually.
The practice involves retailers who illegally give SNAP recipients cash instead of food.
Operated by the U.S. Department of Agriculture’s Food and Nutrition Service, the program is designed to provide low-income families with a debit-type card they use to buy food. The benefits cannot be swapped for cash.
But that is exactly what prosecutors in the office of U.S. Attorney McGregor W. Scott, of the Eastern District, allege Gomez and Munoz did at El Ranchito.
The businesses a neighborhood bakery and meat market at 417 W. Shields Ave.
The indictment accuses Gomez and Munoz of giving SNAP recipients a portion of the cash they requested to be redeemed. They are accused of pocketing the rest.
It’s unclear how much they allegedly skimmed, but federal prosecutors estimate Gomez and Munoz defrauded the food program in excess of $2.6 million from 2016 to 2018.
“When defendant Gomez and defendant Munoz and other El Ranchito Bakery staff exchanged SNAP benefits with benefit recipients for cash, causing the USDA to wire sums of money into the El Ranchito bank account, they represented the transaction was for eligible food purchases, while knowing it was not for such purposes,” according to the indictment.
If found guilty of all charges, Gomez and Munoz would likely face time in prison. One count of wire fraud alone carries a maximum penalty of 20 years in prison or a $250,000 fine.
Other retailers found guilty of selling SNAP benefits have been given jail time and hefty fines.
In Rockford, Illinois, Leeform “John” Xayvandy, Sr., 39, pleaded guilty last year to one count of wire fraud and one count of money laundering. He was sentenced to three years in prison and ordered to pay around $3.18 million in restitution.
The owner of El Ranchito could not be reached for comment Monday.
