NYC Local News: USDA Employee Sentenced to 2 Years in Prison for $66 Million SNAP Food Stamp Fraud and Bribery Scheme

A USDA employee was sentenced to two years in prison for a $66 million SNAP food stamp fraud and bribery scheme involving EBT license numbers and kickbacks. 

A USDA employee was sentenced to two years in prison for a $66 million SNAP food stamp fraud and bribery scheme involving EBT license numbers and kickbacks. 

Manhattan Voice 

December 23, 2025

NYC LOCAL NEWS - In a shocking case of government corruption, Arlasa Davis, a long-time USDA employee, was sentenced to two years in prison for her role in a massive food stamp fraud and bribery scheme that defrauded the Supplemental Nutrition Assistance Program (SNAP) of over $66 million. Here's everything you need to know about the case, the investigation, and its consequences.

What Happened in the USDA Food Stamp Fraud Case?

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In December 2025, Arlasa Davis, a former employee of the U.S. Department of Agriculture (USDA), was sentenced to 24 months in prison for orchestrating one of the largest fraud and bribery schemes involving the Supplemental Nutrition Assistance Program (SNAP). This scam resulted in over $66 million in fraudulent transactions under the food stamp program, which is designed to provide assistance to families in need.

Arlasa Davis was sentenced in a massive food stamp fraud.

Davis, who worked for the USDA division responsible for identifying fraud within the SNAP system, exploited her position to sell confidential government information. This data included EBT license numbers, which are crucial for stores that wish to accept SNAP benefits. By selling this information to criminals, Davis allowed unauthorized stores to process SNAP transactions, diverting millions of dollars in federal funds.

How Did Arlasa Davis Exploit Her Position?

Davis had privileged access to sensitive government systems that allowed her to identify fraudulent SNAP activity. Instead of protecting the program, she abused her position to make money. Here's how she carried out the scam:

• Selling Confidential EBT License Numbers: Davis used her personal cellphone to photograph handwritten lists of EBT license numbers intended for qualifying stores. These lists were meant for use by USDA-approved retailers.

• Passing Information to Criminals: She then funneled these license numbers to a middleman, who in turn sold them to others involved in the fraudulent operation.

• Unauthorized Transactions: Criminals used these license numbers to fraudulently obtain EBT terminals for stores that were not authorized by the USDA to process food stamp transactions.

• Bribes and Gifts: In exchange for her role in the fraud, Davis received substantial bribes, which were often disguised as birthday gifts or flowers.

The Legal Consequences for Arlasa Davis

In addition to her prison sentence, Davis was ordered to pay $36 million in restitution and forfeit $48,470 in criminal proceeds. She will also serve two years of supervised release after her time in prison.

U.S. Attorney for the Southern District of New York, Sean S. Buckley, commented, "Arlasa Davis exploited her role as a government employee to enrich herself while undermining a program designed to help New York families in need." The sentence sends a strong message that exploiting government funds will have serious consequences.

How Did the Investigation Uncover the Fraud?

The USDA Office of Inspector General (OIG), in collaboration with the FBI, led a thorough investigation into the fraudulent activities. The investigation uncovered how Davis was using her government position to assist criminals, and it ultimately led to her guilty plea for bribery and conspiracy to commit bribery.

The case was prosecuted by Assistant U.S. Attorneys Georgia V. Kostopoulos and Joe Zabel, who played a crucial role in bringing Davis to justice. The efforts of these agencies have highlighted the importance of combating fraud within government programs like SNAP.

Why Is This Case So Important?

This case has significant implications for both government employees and taxpayers. The SNAP program is designed to provide essential aid to families who struggle to afford food. By exploiting this system, Davis and her co-conspirators not only took money from the government but also undermined a program that helps vulnerable citizens.

The investigation into this massive food stamp fraud scheme serves as a warning to others who might consider exploiting public trust for personal gain. It also highlights the importance of keeping government systems secure and transparent.

What Are the Long-Term Implications of This Case?

For the USDA and other government agencies, this case underscores the need for more robust internal controls and greater oversight to prevent corruption and fraud. As the USDA works to rebuild trust, the public will likely see more stringent measures implemented to safeguard SNAP and other public assistance programs.

For everyday citizens, the case is a reminder of the potential for abuse within large government systems and the importance of holding individuals accountable for their actions. Government fraud prevention will continue to be a major focus for law enforcement agencies, and this case may set a precedent for future actions.

Key Takeaways

• Arlasa Davis, a longtime USDA employee, was sentenced to 2 years in prison for her role in a $66 million food stamp fraud scheme.

• She exploited her position to sell EBT license numbers to criminals, allowing unauthorized stores to process SNAP transactions.

• Davis received bribes disguised as gifts in exchange for her actions.

• In addition to her prison sentence, she must pay $36 million in restitution and forfeit criminal proceeds.

• The case highlights the ongoing efforts by the USDA Office of Inspector General and the FBI to combat fraud in government programs.

Conclusion: Lessons Learned from the USDA Food Stamp Fraud Case

This case is a stark reminder of the vulnerabilities in government assistance programs like SNAP. It shows how individuals can abuse their positions of trust for personal gain and highlights the importance of holding people accountable for such actions. With government fraud becoming an increasing concern, it's clear that agencies like the USDA and the FBI will continue to prioritize investigations into corruption and fraud. For now, Arlasa Davis' case serves as a cautionary tale about the consequences of betraying public trust.