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An Indian-origin grocery store owner in Lynchburg, Virginia, was sentenced to 33 months in federal prison after pleading guilty to food stamp fraud and related charges involving more than $2.1 million in fraudulent transactions.
Rajan Babbar, the owner of Taste of India, pleaded guilty in March 2026 to one count of fraud involving the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, and one count of transacting in criminally derived property, the U.S. Attorney's Office for the Western District of Virginia saidAccording to court documents, Babbar applied in 2016 for Taste of India to become an authorized SNAP retailer through the U.S. Department of Agriculture's Food and Nutrition Service. The application was approved in December 2016.
Also Read: Virginia grocer Rajan Babbar admits SNAP fraud
Federal prosecutors said SNAP sales at the store increased sharply beginning around April 2021. While Taste of India averaged about $2,600 per month in SNAP transactions in 2018, that figure had risen to approximately $65,000 per month by 2023, representing an increase of about 2,500 percent.
Investigators found that between January 2019 and January 2025, the average SNAP transaction at the store was $115.77, nearly three times the statewide average of $40.61 among similarly sized retailers.
As part of the scheme, Babbar admitted that he allowed customers to exchange their SNAP benefits for cash. Prosecutors said he processed false transactions for food and other items that were never purchased and then provided customers with cash worth roughly half the value of the benefits redeemed.
The court determined that Babbar conducted fraudulent SNAP transactions totaling $2,108,924 between January 2019 and January 2025.
Senior U.S. District Judge Norman K. Moon also ordered Babbar to forfeit more than $380,000 in seized assets and pay $2,108,924 in restitution to the U.S. Department of Agriculture's Food and Nutrition Service.
"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," the U.S. Attorney's Office said in announcing the sentence.
First Assistant U.S. Attorney Robert N. Tracci, USDA Office of Inspector General Special Agent in Charge Charmeka Parker, and FBI Richmond Division Special Agent in Charge Ian Kaufmann announced the sentencing.
The case was investigated by the USDA Office of Inspector General, the FBI, and the Lynchburg Police Department. Assistant U.S. Attorney Lee Brett prosecuted the case.
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