The 64-year-old owner of a small Tacoma market was arraigned April 22 in U.S. District Court in Tacoma for multiple counts of wire fraud and Supplemental Nutrition Assistance Program (SNAP) benefit fraud, the U.S. Attorney’s Office for the Western District of Washington announced.
Manjit Bedi of Kent, Washington, allegedly exchanged food benefits for cash, resulting in more than $600,000 in losses to the federal nutrition program.
Bedi pleaded not guilty before U.S. Magistrate Judge Theresa L. Fricke. Trial is scheduled for June 22, with U.S. District Judge Tiffany M. Cartwright presiding.
According to the indictment, Bedi owned and operated a small grocery store in Tacoma. In February 2024, the store was authorized to accept SNAP benefits, formerly known as food stamps.
Beginning in March 2024, the indictment contends, Bedi agreed to provide SNAP recipients with cash in exchange for the money loaded on their electronic benefits card.
For example, Bedi would charge $200 against a recipient’s EBT card, providing $100 in cash to the recipient and keeping the other $100 as profit.
According to the indictment, Bedi allegedly pocketed at least $600,000 in SNAP benefits for food items that were never sold.
Charles Neil Floyd, first assistant U.S. attorney for the Western District of Washington, described the scheme as an attack on resources meant for the most vulnerable.
“Every assistance dollar lost to fraud is a dollar that could be feeding hungry children,” Floyd said. “This crime steals from taxpayers – including our most needy, cutting the dollars they have for food. We are committed to rooting out such fraud so that federal dollars go to where they are most needed.”
The Department of Justice has created the National Fraud Enforcement Division, whose core mission is to investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Both wire fraud and SNAP benefit fraud are punishable by up to 20 years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. The case was investigated by the U.S. Department of Agriculture Office of Inspector General, the FBI and the Washington State Department of Social and Health Services.
[RELATED: NGA Supports SNAP Modernization, EBT Fee Ban In House Farm Bill]