Not only did we expose EBT benefits being used to buy drugs, like ‘kratom’, we also revealed the bodegas across New York City selling us beer with EBT cards.
In Queens, we asked him to run the beer as "food." He agreed and we walked out with beer purchased using an EBT card.

Federal law is clear: SNAP benefits are for eligible food items only under the Food and Nutrition Act of 2008 and 7 CFR 271.2. Alcohol cannot legally be purchased with SNAP benefits. These NYC retailers who intentionally process alcohol as food are violating federal SNAP regulations, subject to disqualification from SNAP participation, civil penalties under 7 CFR 278.6,New York State Crime S 110, and their USDA Retailer Agreement.

We also uncovered another loophole at a Harlem bodega. After manipulating an EBT transaction, a clerk converted taxpayer-funded benefits into cash. Minutes later, that same cash was used to purchase beer. According to our investigation, this violates federal law 7 C.F.R. § 278.2(a), which prohibits SNAP benefits from being exchanged for cash except as limited change in an eligible transaction.

If taxpayer-funded benefits can be converted into cash and immediately spent on alcohol, how often is this happening without anyone noticing?

When we confronted one of the clerks who had just spoken with us in English, he suddenly claimed he couldn't understand English at all. This is where your taxpayer dollars are going. Remember, there is money in fraud. There's no money in exposing the fraud.

How many retailers are getting away with this every day?

If you've witnessed fraud in your community or want to help expose it, email tips@okeefemediagroup.com or message us securely on Signal: 914-491-9395.

@JamesOKeefe