Attorney General Dan Rayfield announced today that 19 people have been charged with stealing more than $500,000 from SNAP (Supplemental Nutrition Assistance Program) benefits cards around the country – using the money to purchase baby formula which was then sold on the black market.
“This isn’t just theft – it is an assault on our most vulnerable communities,” Rayfield said. “These people took advantage of a program meant to support families in need. Families, older adults and people with disabilities who can’t afford groceries and basic items. The integrity of public assistance programs is vital, and my office will continue to take action against anyone who seeks to exploit them for personal gain.”
Oregon DOJ investigators with the Criminal Justice Division explained how the scam works: The suspects used skimming devices and stolen Electric Benefits Transfer (EBT) accounts to purchase baby formula. The large quantity of formula was stored in storage units and properties in Oregon and Washington, before being repackaged and shipped to California to be sold on the black market.
This investigation started after a Portland Police detective learned from some retail partners that large quantities of baby formula were being purchased using SNAP (Supplemental Nutrition Assistance Program) benefits cards. The retailers were concerned that the cards were potentially being used fraudulently, victimizing vulnerable community members who rely on those benefits to feed themselves and their families.
Both federal investigators and the Oregon DOJ launched investigations. Federal investigators arrested 17 people in October for their roles in buying, storing and shipping the formula to California.
The 19 people indicted in ODOJ’s case were all loosely connected to each other, living in apartments in the Portland and Gresham areas. Some of the suspects were also named in the federal indictments last year. They used several stores in their scheme, including Fred Meyer, Safeway and Winco. Fred Meyer provided a majority of the surveillance video, which helped investigators identify the suspects.
The grand jury indicted the defendants on charges of money laundering, theft, aggravated theft, identity theft, and aggravated identity theft.
All defendants are innocent until proven guilty. Once they are arrested on the outstanding warrants they will be arraigned, and the case will proceed.
