A New Brunswick man will spend more than two years in federal prison after running his grocery store as a front for a $2.2 million food stamp cash-out scheme.
Victor Madera owned a midsize grocery store in East Orange authorized to accept Supplemental Nutrition Assistance Program (SNAP) benefits. For seven years—from May 2017 through November 2024—he ran a simple but lucrative con that saw his employees ring up inflated SNAP transactions, hand customers back a cut of the money in cash, and pocket the difference.
It’s illegal to exchange SNAP benefits for cash under any circumstances. The markup meant Madera’s store collected far more in federal reimbursements than the food was actually worth, according to U.S. Attorney Robert Frazer.
Madera pleaded guilty to conspiracy to defraud SNAP and SNAP benefits fraud. On July 1, U.S. District Judge Robert Kirsch sentenced him to 27 months in federal prison and one year of supervised release. He was also ordered to pay more than $2.2 million in restitution and forfeiture, according to the Jersey Vindicator.
The investigation was led by special agents with the U.S. Department of Agriculture’s Office of Inspector General.
With increased pressure on SNAP in the past year, identifying fraud and removing it is more important than ever for the program’s long-term stability.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.