Grayson Man Sentenced in Food Stamp Fraud Case

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Grayson man has been sentenced in federal court for stealing more than $1 million in a food stamp fraud scheme.

Terry Stinson, 47, owner of six convenience stores in Gwinnett County, was accused of accepting Women, Infants and Children (WIC) and Supplemental Nutritional Assistance Program (SNAP) benefits in exchange for cash payments, according to a news release.

Proscutors charged Stinson and employees paid cash at below face value for WIC vouchers and SNAP benefits instead of accepting them as payment for qualified food items.

Stinson, who was found guilty by jury, was sentenced to five years, seven months in prison and ordered to pay restitution of $800,015.90. His prison term will be followed by three years of supervised release.

“The WIC and SNAP programs are designed to meet the basic but critical nutritional needs of low-income households,” said Acting U.S. Attorney John Horn in the news release. “By paying significantly less than face value of the vouchers with cash, Stinson’s greed defeated an important purpose of the program, to ensure that mothers, children, and low-income families receive nutritious food.”

Stinson owned the stores from October 2009 to November 2011, including Nu Energy Foods near Lawrenceville, from which $2.3 million in WIC vouchers were redeemed during that time span, the U.S. Attorney’s Office said. That’s $2 million more than the average at similar WIC-authorized stores for the same time period. His other stores also were authorized WIC and SNAP vendors.

The scheme was uncovered after an armed robbery was reported in the summer of 2011 at Nu Energy Foods. Gwinnett Police recovered a cash exchange log from the store that USDA inspectors believed cataloged the money exchanges.

During an undercover investigation, agents posing as customers sold vouchers to Nu Energy Foods employees.