Date: 01-14-2017

Case Style:

Case Number: 2:15-cr-00017-CMR

Judge: Cynthia M. Rufe

Court: United States District Court for the Eastern District of Pennsylvania (Philadelphia County)

Plaintiff's Attorney: Floyd J. Miller and Albert S. Glenn

Defendant's Attorney: Jerry Stein

Description: Philadelphia, PA - Philadelphia Man Found Guilty Of Defrauding The Federal Supplemental Nutrition Assistance Program

A federal jury in Philadelphia convicted Abdoulaye Diallo on all counts of an indictment charging him with defrauding the federal Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, and with conspiring to do so, announced Acting United States Attorney Louis D. Lappen. Diallo owned and operated the Brothers Food Market, a grocery store on Germantown Avenue near Venango Street in Philadelphia. The jury convicted Diallo of conspiring with another individual to buy SNAP benefits for cash from those who had SNAP benefit cards (also known as PA Access cards) between September 2011 and February 2015. The jury also found Diallo guilty of exchanging SNAP benefits for cash on five different dates during that period, each of which constituted wire fraud and SNAP benefit fraud. The amount of money charged to the SNAP Program varied from $300 to almost $600 for each transaction.

Diallo’s convictions were on six counts of wire fraud, six counts of defrauding the SNAP Program, and one count of conspiracy to do so. Diallo faces a maximum sentence of 20 years on each wire fraud count, and five years imprisonment on each SNAP fraud count and on the one conspiracy count. The court could also impose a fine, order forfeiture and order that Diallo pay restitution.

The SNAP Program is administered by the Food and Nutrition Service of the United States Department of Agriculture. It is intended to provide funds to assist low income families in purchasing food.

The case was investigated by the Office of Inspector General, United States Department of Agriculture and by Homeland Security Investigations, with the assistance of the Philadelphia Police Department.

Defendant was charged with violating 18 U.S.C. 371 (conspiracy); 18 U.S.C. 1343 (wire fraud); 7 U.S.C. 2032 (unlawful use, transfer, acquisition and possession of SNAP benefits.

Title 7 U.S.C. Section 2024 provides:

(a) In general

Notwithstanding any other provision of this chapter, the Secretary may provide for the issuance or presentment for redemption of benefits to such person or persons, and at such times and in such manner, as the Secretary deems necessary or appropriate to protect the interests of the United States or to ensure enforcement of the provisions of this chapter or the regulations issued pursuant to this chapter.
(b) Unauthorized use, transfer, acquisition, alteration, or possession of benefits

(1) Subject to the provisions of paragraph (2) of this subsection, whoever knowingly uses, transfers, acquires, alters, or possesses benefits in any manner contrary to this chapter or the regulations issued pursuant to this chapter shall, if such benefits are of a value of $5,000 or more, be guilty of a felony and shall be fined not more than $250,000 or imprisoned for not more than twenty years, or both, and shall, if such benefits are of a value of $100 or more, but less than $5,000, or if the item used, transferred, acquired, altered, or possessed is an 1 benefit that has a value of $100 or more, but less than $5,000, be guilty of a felony and shall, upon the first conviction thereof, be fined not more than $10,000 or imprisoned for not more than five years, or both, and, upon the second and any subsequent conviction thereof, shall be imprisoned for not less than six months nor more than five years and may also be fined not more than $10,000 or, if such benefits are of a value of less than $100, or if the item used, transferred, acquired, altered, or processed is an 1 benefit that has a value of less than $100, shall be guilty of a misdemeanor, and, upon the first conviction thereof, shall be fined not more than $1,000 or imprisoned for not more than one year, or both, and upon the second and any subsequent conviction thereof, shall be imprisoned for not more than one year and may also be fined not more than $1,000. In addition to such penalties, any person convicted of a felony or misdemeanor violation under this subsection may be suspended by the court from participation in the supplemental nutrition assistance program for an additional period of up to eighteen months consecutive to that period of suspension mandated by section 2015(b)(1) of this title.

(2) In the case of any individual convicted of an offense under paragraph (1) of this subsection, the court may permit such individual to perform work approved by the court for the purpose of providing restitution for losses incurred by the United States and the State agency as a result of the offense for which such individual was convicted. If the court permits such individual to perform such work and such individual agrees thereto, the court shall withhold the imposition of the sentence on the condition that such individual perform the assigned work. Upon the successful completion of the assigned work the court may suspend such sentence.
(c) Presentation for payment or redemption of benefits that have been illegally received, transferred, or used

Whoever presents, or causes to be presented, benefits for payment or redemption of the value of $100 or more, knowing the same to have been received, transferred, or used in any manner in violation of the provisions of this chapter or the regulations issued pursuant to this chapter, shall be guilty of a felony and, upon the first conviction thereof, shall be fined not more than $20,000 or imprisoned for not more than five years, or both, and, upon the second and any subsequent conviction thereof, shall be imprisoned for not less than one year nor more than five years and may also be fined not more than $20,000, or, if such benefits are of a value of less than $100, shall be guilty of a misdemeanor and, upon the first conviction thereof, shall be fined not more than $1,000 or imprisoned for not more than one year, or both, and, upon the second and any subsequent conviction thereof, shall be imprisoned for not more than one year and may also be fined not more than $1,000. In addition to such penalties, any person convicted of a felony or misdemeanor violation under this subsection may be suspended by the court from participation in the supplemental nutrition assistance program for an additional period of up to eighteen months consecutive to that period of suspension mandated by section 2015(b)(1) of this title.
(d) Benefits as obligations of the United States

Benefits issued pursuant to this chapter shall be deemed to be obligations of the United States within the meaning of section 8 of title 18.
(e) Forfeiture of property involved in illegal benefit transactions

The Secretary may subject to forfeiture and denial of property rights any nonfood items, moneys, negotiable instruments, securities, or other things of value that are furnished by any person in exchange for benefits, or anything of value obtained by use of an access device, in any manner contrary to this chapter or the regulations issued under this chapter. Any forfeiture and disposal of property forfeited under this subsection shall be conducted in accordance with procedures contained in regulations issued by the Secretary.
(f) Criminal forfeiture
(1) In general

In imposing a sentence on a person convicted of an offense in violation of subsection (b) or (c) of this section, a court shall order, in addition to any other sentence imposed under this section, that the person forfeit to the United States all property described in paragraph (2).
(2) Property subject to forfeiture

All property, real and personal, used in a transaction or attempted transaction, to commit, or to facilitate the commission of, a violation (other than a misdemeanor) of subsection (b) or (c) of this section, or proceeds traceable to a violation of subsection (b) or (c) of this section, shall be subject to forfeiture to the United States under paragraph (1).
(3) Interest of owner

No interest in property shall be forfeited under this subsection as the result of any act or omission established by the owner of the interest to have been committed or omitted without the knowledge or consent of the owner.
(4) Proceeds

The proceeds from any sale of forfeited property and any monies forfeited under this subsection shall be used—

(A) first, to reimburse the Department of Justice for the costs incurred by the Department to initiate and complete the forfeiture proceeding;

(B) second, to reimburse the Department of Agriculture Office of Inspector General for any costs the Office incurred in the law enforcement effort resulting in the forfeiture;

(C) third, to reimburse any Federal or State law enforcement agency for any costs incurred in the law enforcement effort resulting in the forfeiture; and

(D) fourth, by the Secretary to carry out the approval, reauthorization, and compliance investigations of retail stores and wholesale food concerns under section 2018 of this title.

Outcome: Guilty

Plaintiff's Experts:

Defendant's Experts:

Comments: