Feds Break Up $66M Food Stamp Scam

Fraud Watchdog Accused of Selling Info to Scammers 

By Dan Gesslein 

Manhattan Voice 

May 30, 2025 

NEW YORK - The feds busted six people accused of running a $66 million food stamp scam throughout NYC. The defendants are charged with obtaining EBT licenses to phony vendors so they can run food stamp cards through their skimmers for purchases.  

One of those charged worked as a fraud monitor for the USDA in the food stamp division, prosecutors said. Officials said the food stamp scam is one of the largest in US history. 

The US Attorney for the Southern District announced the unsealing of the indictment. The following people were charged: Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, Emad Alrawashdeh and Arlasa Davis.  

Prosecutors said Kehoe lined up a string of stores to bill food stamps with purchases even though these stores were not authorized to do so. According to the indictment, starting in 2019, Davis provided the license numbers of legitimate EBT vendors to Kehoe for these unauthorized stores. 

FBI Assistant Director in Charge Christopher G. Raia said: “Arlasa Davis, a USDA employee, is alleged to have abused her position and privileged access to confidential government databases to assist her co-conspirators in exploiting the SNAP program, driving tens of millions of dollars in fraudulent transactions. This alleged scheme benefited the defendants while undermining critical safeguards designed to ensure that SNAP assistance reaches only eligible families in need. The FBI will never tolerate any individual who exploits federal financial assistance for personal reward.”

Under the federal Supplemental Nutrition Assistance Program (SNAP) recipients make food purchases using their electronic benefits card in a store’s card reader or skimmer. Each store that accepts SNAP EBT benefits has to be licensed through the USDA. 

Prosecutors alleged that Kehoe had a string of 160 unauthorized EBT terminals in stores throughout NYC. 

Prosectors further alleged that Davis used her personal cellphone to photograph handwritten lists of license numbers for legitimate stores. Davis then allegedly emailed these numbers to Nawafleh, Omar Alrawashdeh, Obaid and Emad Alrawashdeh. The men then allegedly used those numbers to “to fraudulently obtain EBT terminals for stores that were not authorized by the USDA to process SNAP transactions.” 

Prosecutors said Davis received bribes for providing the lists. The bribes were disguised in messages back and forth between Davis and the other men as “birthday gifts” and “flowers.”

Kehoe, 46, of Long Island, New York; Nawafleh, 34, of the Bronx, New York; Omar Alrawashdeh, 37, of the Bronx, New York; Obaid, 39, of the Bronx, New York; Emad Alrawashdeh, 37, of the Bronx, New York; and DAVIS, 56, of Gardiner, New York, are each charged with one count of conspiracy to steal government funds and misappropriate USDA benefits, which carries a maximum sentence of five years in prison, one count of theft of government funds, which carries a maximum sentence of 10 years in prison, and one count of misappropriation of USDA benefits, which carries a maximum sentence of 20 years in prison.  

Davis is additionally charged with one count of conspiracy to commit bribery, which carries a maximum sentence of five years in prison, one count of bribery, which carries a maximum sentence of 15 years in prison, and one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison.  

Nawafleh is additionally charged with one count of failure to appear, which carries a maximum sentence of 10 years in prison.