Representative image / Pexels
Virginia grocery store owner Rajan Babbar, 59, pleaded guilty to federal food stamp fraud, announced the U.S. Attorney's office on March 3.
Babbar, the Lynchburg-based owner of 'Taste of India', was approved by the United States Department of Agriculture’s (USDA) Food and Nutrition Service (FNS) to become a SNAP retailer.
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Suspicion against Babbar gained steam after it was noted that Babbar was allegedly clocking in close to $2,600 in SNAP transactions every month in 2018, which increased to $65,000 by 2023, marking a 2,500 percent increase. It was also found, in Babbar's store, the average individual SNAP transaction was for $115.77 as compared to an average transaction of $40.61 in similar sized stores.
Pleading guilty to the charge of fraud, Babbar admitted that he permitted individuals to exchange their SNAP benefits for cash. Babbar rang up false transactions for non-existent food items and other products. He then provided those individuals with cash for approximately half the value of the SNAP benefits.
SNAP was established by the United States government to alleviate hunger and malnutrition among low and middle-income families by increasing their food purchasing power and ability.
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