Federal agents visited 20 retailers in the Twin Cities, Minneapolis and St. Paul, Minnesota, on April 16 with search warrants related to suspected food assistance fraud.
The U.S. Department of Agriculture Office of Inspector General said several federal agencies collaborated to identify stores engaging in “SNAP trafficking” — trading SNAP benefits for cash or ineligible items.
Homeland Security Investigations and USDA Office of Inspector General agents executed the search warrants and delivered administrative charging letters as part of “Operation Cold SNAP,” which began in February.
“If these charges are proven, the retailers could be removed from the program or subjected to other penalties,” the office said in a news release Thursday. “Evidence seized during the searches was referred to federal prosecutors.”
The news release did not specify which retailers were visited.
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Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.