Business & Tech

Newark Grocery Store Traded Cash For ‘Food Stamps’: Prosecutor

A father and daughter who operate a Newark grocery store allegedly traded more than $885K in SNAP benefits for cash, prosecutors said.

NEWARK, NJ — A father and daughter who operate a Newark grocery store have been charged with fraud after they allegedly exchanged more than $885,000 in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, prosecutors announced Monday.

Maria Teresa Venegas, 25, and her father, Manuel Venegas, 53, both of Newark, are charged by complaint with SNAP benefits fraud. Both were arrested Monday morning, the U.S. Attorney’s Office (NJ) stated.

Prosecutors allege that since November 2011, Maria and Manuel Venegas have managed Jenny’s Deli, a small grocery store in Newark that was authorized to accept SNAP benefits, formerly known as the Food Stamp Program.

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Under the U.S. Department of Agriculture program, approved retail food stores may sell food in exchange for SNAP benefits but are not allowed to exchange SNAP benefits for cash. However, Manuel and Maria Teresa Venegas allegedly exchanged more than $885,000 in SNAP benefits for cash between 2011 and 2018, prosecutors said.

According to prosecutors:

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“In addition to the high volume of SNAP redemptions for Jenny’s Deli indicating fraud, law enforcement officers used an undercover agent who engaged in approximately 20 ‘purchases’ at Jenny’s Deli where one or both defendants allegedly exchanged cash for SNAP benefits.”

The SNAP benefits fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, prosecutors said.

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