The Oregon Department of Justice has indicted 19 individuals accused of stealing over $500,000 from Supplemental Nutrition Assistance Program (SNAP) benefits cards. The funds were allegedly used to purchase baby formula, which was then sold on the black market. Attorney General Dan Rayfield commented on the seriousness of the crime: "This isn’t just theft – it is an assault on our most vulnerable communities. These people took advantage of a program meant to support families in need. Families, older adults, and people with disabilities who can’t afford groceries and basic items. The integrity of public assistance programs is vital, and my office will continue to take action against anyone who seeks to exploit them for personal gain."
Oregon DOJ investigators from the Criminal Justice Division described the scam. The suspects allegedly used skimming devices and stolen EBT accounts to acquire baby formula. The formula was then stored in various locations in Oregon and Washington before being repackaged and sent to California for illegal resale.
The investigation commenced after a Portland Police detective received reports from retail partners regarding suspicious, large purchases of baby formula with SNAP benefits cards. Concerns arose that these cards might be fraudulently used, impacting vulnerable individuals dependent on SNAP for food security.
Both federal and Oregon DOJ investigators undertook separate probes. In October, federal authorities arrested 17 individuals connected to the acquisition, storage, and shipping of the formula. The 19 individuals indicted by the Oregon DOJ allegedly operated in association and resided in the Portland and Gresham regions. Some were already named in last year's federal indictments. Stores such as Fred Meyer, Safeway, and Winco were implicated in the scheme, with Fred Meyer providing key surveillance footage to identify suspects.
The defendants face charges including money laundering, theft, aggravated theft, identity theft, and aggravated identity theft. It should be noted that all defendants are presumed innocent until proven guilty. They will be arraigned after arrest, and the legal proceedings will continue.