USDA Employee Sentenced To Two Years In Prison For Multimillion-Dollar Food Stamp Fraud And Bribery Scheme

 

Sean S. Buckley, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced that ARLASA DAVIS was sentenced to twenty-four months in prison for her role in a sprawling fraud and bribery scheme that generated over $66 million in unauthorized transactions under the Supplemental Nutrition Assistance Program (“SNAP”)—colloquially known as food stamps.  DAVIS, a longtime employee of the United States Department of Agriculture (“USDA”), abused her position within the division responsible for identifying SNAP fraud to sell confidential government information to criminals.  DAVIS previously pled guilty to bribery and conspiracy to commit bribery before U.S. District Judge Jed S. Rakoff, who imposed this sentence. 

“Arlasa Davis exploited her role as a government employee to enrich herself while undermining a program designed to help New York families in need,” said Attorney for the United States Sean S. Buckley. “This conviction and sentence send a clear message that exploitation of funds intended for families will result in serious consequences.” 

According to the Indictment and statements made in public court proceedings and filings:

DAVIS worked within the USDA division responsible for identifying SNAP fraud. She abused her privileged access to federal systems to sell hundreds of Electronic Benefits Transfer (“EBT”) license numbers to co-conspirators.  DAVIS photographed handwritten lists of license numbers intended for qualifying stores with her personal cellphone and funneled them to an intermediary who sold them to co-conspirators, who in turn used those license numbers to fraudulently obtain EBT terminals for stores that were not authorized by the USDA to process SNAP transactions.  In return, DAVIS received substantial bribes that were disguised in communications as, among other things, “birthday gifts” and “flowers.”

In addition to her prison term, DAVIS, 56, of Gardiner, New York, was sentenced to two years of supervised release.  DAVIS was also ordered to forfeit $48,470 and pay restitution of $36 million.

Mr. Buckley praised the outstanding investigative efforts of the USDA Office of Inspector General and the New York Field Office of the Federal Bureau of Investigation.

This matter is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorneys Georgia V. Kostopoulos and Joe Zabel are in charge of the prosecution.