Phoenix store suspected of food stamp fraud - Tucson News Now

Phoenix store suspected of food stamp fraud

CBS 5 CBS 5
PHOENIX (CBS5) -

A Phoenix discount store is under investigation on suspicion of food stamp fraud that allegedly cost taxpayers nearly $1 million, a multi-agency task force said.

Authorities said they identified four employees at Dollar Dayz general store at 1602 W. Buckeye Rd. accused of illegally conducting an enterprise, fraudulent schemes and artifices, money laundering, unlawful use of food stamps and computer tampering. Law enforcement did not name the workers involved.

A Special Assignment Unit of the Phoenix Police Department served search warrants on the business at 12 p.m. Police gathered evidence, including cash, bank records, extraneous food stamp cards and business ledgers.

Authorities allege that the store, on multiple occasions, provided cash to people in exchange for food stamp benefits in fraudulent transactions during the course of the months-long investigation. Preliminary data estimated the store allegedly committed fraud against the food stamp program to the tune of $700,000 since 2010, investigators said.

"This is an unfortunate example of a business stealing taxpayer money by allowing a person with a food stamp card to purchase a small item and overcharge the card in order to make a profit," said Arizona Attorney General Tom Horne. "With tens of thousands of dollars being claimed by a store with two aisles of food, it is physically impossible for Dollar Dayz to have made the volume of sales they are claiming."

By law, SNAP benefits can't be exchanged or redeemed for cash. In a typical criminal transaction, the seller receives a portion of the value of the card in cash and the buyer, in this case the store owner, removes the benefits from the card through sham transactions, investigators said.

The coordinated undercover operation involved the U.S. Department of Agriculture - Office of the Inspector General, the Phoenix Police Department, the Arizona Attorney General's Office and the Arizona Department of Economic Security - Office of Special Investigations.

Copyright 2013 CBS 5 (KPHO Broadcasting Corporation). All rights reserved.

  • Trending StoriesTrending StoriesMore>>

  • Severe reaction to new sandals leads woman on a painful path

    Severe reaction to new sandals leads woman on a painful path

        One woman wants to warn people about her painful path, the result of a severe and debilitating allergic reaction.  She had no idea what she was allergic to until she visited a fourth emergency room in two weeks.    

    One woman wants to warn people about her painful path, the result of a severe and debilitating allergic reaction. She had no idea what she was allergic to until she visited a fourth emergency room in two weeks.    

  • 'The Phantom' serial killer of children out of prison, living in Tucson

    'The Phantom' serial killer of children out of prison, living in Tucson

    Thursday, April 27 2017 12:17 AM EDT2017-04-27 04:17:43 GMT
    Friday, April 28 2017 7:08 PM EDT2017-04-28 23:08:11 GMT
    Convicted killer William Huff was spotted riding his bicycle through a Tucson neighborhood. (Source: 3TV/CBS 5)Convicted killer William Huff was spotted riding his bicycle through a Tucson neighborhood. (Source: 3TV/CBS 5)

    William Huff terrorized Sierra Vista during the spring and summer of 1967. Despite a sentence of 40 years to life, the Arizona Board of Executive Clemency voted to release him from prison into home arrest. Family members of the victims are concerned for the safety of the community, as are new members of the Clemency Board. CBS 5 Investigates videotaped Huff riding a bike through his Tucson neighborhood. There are no restrictions placed on his proximity to children.

    William Huff terrorized Sierra Vista during the spring and summer of 1967. Despite a sentence of 40 years to life, the Arizona Board of Executive Clemency voted to release him from prison into home arrest. Family members of the victims are concerned for the safety of the community, as are new members of the Clemency Board. CBS 5 Investigates videotaped Huff riding a bike through his Tucson neighborhood. There are no restrictions placed on his proximity to children.

  • Woman held captive: 'Don't let him put me back in the hole'

    Woman held captive: 'Don't let him put me back in the hole'

    Friday, April 28 2017 1:49 PM EDT2017-04-28 17:49:28 GMT
    The shed where Elliott was held. (FOX19 NOW)The shed where Elliott was held. (FOX19 NOW)

    Police records released Friday detail the frantic and heartbreaking moments Blanchester police found a woman being held captive in a pit in her neighbor's backyard shed. 

    Police records released Friday detail the frantic and heartbreaking moments Blanchester police found a woman being held captive in a pit in her neighbor's backyard shed. 

Powered by Frankly