The Oregon Department of Justice (ODOJ) has indicted 19 individuals for an alleged scheme that siphoned more than half a million dollars from the Supplemental Nutrition Assistance Program (SNAP), often known as food stamps. These funds were used to buy baby formula in bulk, which was then illegally sold on the black market, the ODOJ stated in a press release. Attorney General Dan Rayfield described the operation as "an assault on our most vulnerable communities," decrying the exploitation of aid intended for those struggling to afford necessities.
According to the Oregon Department of Justice, the suspects used skimming devices and pilfered EBT accounts to pull off the purchases. Using these stolen credentials, they would acquire baby formula in large quantities, store them across properties in Oregon and Washington, and later dispatch them to California's underground markets for sale.
The case came to light after a Portland Police detective heard from retail partners about suspicious large-scale purchases of baby formula through SNAP benefits. Retailers like Fred Meyer, Safeway, and Winco were implicated, with Fred Meyer providing key surveillance footage that helped investigators identify the suspects. The grand jury has announced indictments on multiple counts, including money laundering, theft, and identity theft. Each defendant, it's important to note, is presumed innocent until proven guilty.
Moreover, the investigation by the ODOJ branched from a larger effort that also involved federal agencies. Last October, federal investigators had arrested 17 people for their involved roles in the scheme, as the baby formula was shipped and repackaged for sale. Several of the individuals named in the federal indictments last year also feature among the 19 indicted by the state, revealing a complex web of alleged illegal activity spanning multiple states.
As the legal process unfolds, those charged will be arraigned upon arrest on outstanding warrants, moving the case forward through the judicial system. Meanwhile, the ODOJ is sending a clear message that misappropriation of public assistance funds will not be tolerated, with Rayfield affirming the importance of preserving the integrity of programs designed to help those in greatest need.
