DALLAS — Two North Texas men were sent to prison for their roles in a massive food stamp fraud scheme that resulted in $2 million in losses to SNAP or the Supplemental Nutrition Assistance Program, federal officials said Monday.
Last week, U.S. District Judge Sidney A. Fitzwater sentenced Kamardeen Ogunleye, 52, of Arlington, Texas, to five years in prison. The judge sentenced Robert Gordon, 31, of Balch Springs, Texas, two years and a month in prison.
Each were ordered to pay about $1.9 million in restitution to the U.S. Department of Agriculture, Food and Nutrition Service.
Both must surrender to the Bureau of Prisons on September 9.
In April, Ogunleye and Gordon plead guilty to one count of conspiracy to commit food stamp fraud. Ogunleye also pleaded guilty to one count of wire fraud.
Here are the facts of the case, according to court documents:
- Ogunleye owned KSO Dollar Mart, located in a strip mall in Dallas.
- Gordon managed the business for Ogunleye.
- Ogunleye’s and Gordon’s scheme was funneled through this storefront, which offered very few food and beverage items to its customers.
- From March 2010 to September 2013, Ogunleye and Gordon devised a scheme to defraud the USDA by using SNAP benefits.
- Ogunleye and Gordon conspired to purchase food stamp benefits from recipients in exchange for cash and at about 50 percent exchange rate, meaning Ogunleye and Gordon would pay recipients about one dollar in exchange for every two dollars’ worth of benefits.
- Recipients were then free to spend the exchanged-for-cash without the restrictions imposed on SNAP benefits.
- Both Ogunleye and Gordon knew it was illegal to transfer SNAP benefits in exchange for cash, or for any consideration other than eligible food items.
- The full amount of SNAP benefits redeemed in exchange for discounted cash were deposited into Ogunleye’s Omni American Bank and Bank of America accounts held in Arlington, Texas.
- Between April 9, 2010, and June 17, 2013, SNAP redemptions totaling $2,109,859 were deposited into those two accounts.
- Ogunleye, who provided all cash funds that were distributed to customers in exchange for benefits, also collected and retained the bulk of the proceeds from SNAP.
- For his part as a store clerk, Gordon received a weekly salary from Ogunleye ranging from $300 – $600 for his involvement.