A federal court jury in Savannah last week convicted three people for their roles in a scheme to defraud the government of $8 million in two programs designed to assist low-income families.
Rashella Reed, 41, and Derrick Robinson, 41, both of Riverdale, and Tory Hardwick, 21, of Chattanooga, Tenn., each were convicted before U.S. District Judge William T. Moore Jr. of defrauding the Supplemental Nutrition Assistance Program (SNAP), commonly known as the Food Stamp Program, and the Women, Infant and Children Program (WIC).
According to evidence presented during the trial, the defendants conspired to traffick in more than $8 million in government benefits from the two programs and launder the proceeds, First Assistant U.S. Attorney James Durham, who prosecuted the case with assistant prosecutor E. Gregory Gilluly, said in a prèss release Wednesday.
The scheme included 13 storefronts throughout Georgia, including stores in Savannah, Augusta, Atlanta, Decatur, Macon and Columbus. Defendants Reed, Robinson and Hardwick owned or operated the Decatur, Georgia store known as “The Baby Spot.”
The 13 stores amounted to “pretend” grocery stores, which were used as a front to buy over $8 million in food stamp benefits and WIC vouchers for cash. SNAP and WIC recipients were paid anywhere from $.10 to $.60 on the dollar for their benefits; the defendants and other conspirators pocketed the rest.
A total of 16 defendants were charged with the scheme; the other 13 defendants pled guilty.
“SNAP and WIC are food programs set up to help those who need help. These defendants scammed federal food programs and swindled American taxpayers,” U.S. Attorney Edward J. Tarver said. “Let this case serve as notice to any would-be fraudster that if you exchange food stamps and WIC vouchers for cash, you can expect your next meal to be served from the chow-line at a federal prison.”