Federal prosecutors say a longtime Tacoma shop owner turned his small neighborhood market into a cash machine, quietly skimming more than $600,000 from food assistance benefits in just over a year. Manjit Bedi, 64, who operates the Asian Grocery Store in Tacoma, was arraigned Wednesday after a federal grand jury indicted him on charges that he exchanged SNAP benefits for cash and kept a hefty cut for himself. Prosecutors say the alleged scheme kicked off in March 2024, about a month after the store was approved to accept EBT payments. Bedi pleaded not guilty and is set for trial on June 22, 2026.
Federal Indictment Describes Cash-For-EBT Allegations
According to a press release from the U.S. Attorney’s Office for the Western District of Washington, the indictment claims Bedi swiped customers’ EBT cards, then handed them only a portion of the transaction value in cash while pocketing the rest. In one example cited by prosecutors, a $200 charge on a SNAP card allegedly translated into $100 in cash for the shopper and $100 kept by the owner. The case was investigated by the U.S. Department of Agriculture Office of Inspector General, the FBI and the Washington State Department of Social and Health Services, and is being prosecuted by Assistant U.S. Attorney Victoria Cantore.
Local Reporting Lays Out The Timeline
As reported by The News Tribune, Bedi's store was cleared to accept SNAP benefits in February 2024, and the alleged cash-for-EBT deals began the following month. The outlet reports that prosecutors say the conduct continued for more than a year and that the owner ultimately pocketed at least $600,000 in benefits. Reporter Bonny Matejowsky's coverage walks through both the indictment and this week’s arraignment.
SNAP Scams Have Been A Growing Problem In Washington
State numbers show this case is landing in the middle of a wider fraud problem. EBT card scams have already hit thousands of assistance recipients, with the Washington State Department of Social and Health Services tracking about $5.5 million in losses tied to card-reader fraud over the past two years, according to reporting by the Tacoma Daily Index. The agency has processed thousands of fraud claims and replaced millions in stolen benefits while rolling out extra outreach to immigrant and refugee communities. Advocates say these scams land hardest on low-income households that depend on SNAP to keep food on the table.
Court Timeline And Possible Penalties
Bedi appeared before U.S. Magistrate Judge Theresa L. Fricke for arraignment, where he entered a not guilty plea, and a trial is set for June 22, 2026, before U.S. District Judge Tiffany M. Cartwright, according to the U.S. Attorney’s Office. The indictment charges him with multiple counts of wire fraud and SNAP benefit fraud. Those offenses carry potential penalties of up to 20 years in prison and a $250,000 fine. Prosecutors have cast the case as part of a broader push to keep federal nutrition dollars flowing to the families the programs are meant to serve.
Why Prosecutors Say This Matters
“Every assistance dollar lost to fraud, is a dollar that could be feeding hungry children,” First Assistant U.S. Attorney Neil Floyd said, as reported by The News Tribune. The comment highlights federal concerns that trafficking in benefits at the retailer level siphons help away from households that need it most. Officials and prior reporting advise that anyone who suspects EBT fraud should flag it with the state agency and with the USDA Office of Inspector General so investigators can track and pursue potential scams.
