A cashier at a party supply store on Los Angeles’ Skid Row is expected to plead not guilty Tuesday at his arraignment on federal charges alleging food stamp benefits fraud.
Jesse Cervantes-Gomez, 30, is accused of selling SNAP benefits in exchange for cash at Escamex Party Supplies on Towne Avenue. The warehouse-style store sells low-priced Mexican candies and snacks, as well as piñatas and party supplies.
The U.S. Attorney’s Office contends the store has processed over $1 million in suspicious SNAP food stamp transactions. Investigators said they flagged the shop because it processed more than $732,000 in SNAP food stamp transactions in one year, nearly double the volume of nearby competitors, and had large average transaction sizes, which they said were signs of fraudulent purchases.
During visits to the store, undercover agents posing as customers allegedly sought cash kickbacks from the cashier. In May and June, court papers show, Cervantes-Gomez rang up fake SNAP purchases and handed over roughly half in cash, prosecutors allege.
Cervantes-Gomez faces three counts of illegal trafficking in SNAP benefits. He is free on $5,000 bond and, if convicted, could face up to five years in federal prison for each count, prosecutors said.
The July 2 arrest was part of a crackdown on food stamp benefits fraud carried out by the USDA Office of Inspector General and Homeland Security Investigations at multiple Los Angeles-area SNAP retailer locations. Following the sting, formal charge letters were issued to 33 SNAP-authorized retailers across the city, officials said.
Authorities said six stores were accused of selling SNAP benefits in exchange for cash and 27 stores were accused of exchanging SNAP benefits for a range of ineligible items including beer, hard seltzer, bottles of liquor, a vape device, and other prohibited products.
Those retailers face potential penalties including permanent disqualification from SNAP and significant monetary fines, according to the Food and Nutrition Service.
“The days of defrauding government benefit programs are over,” Acting U.S. Attorney Bill Essayli said in a statement. “We’re talking federal prison sentences, not state misdemeanor charges. You’ve been warned.”