USDA Cracks Down on Dozens of California Retailers Committing SNAP Fraud

Washington, D.C., July 6, 2026 – The U.S. Department of Agriculture’s (USDA) Food and Nutrition Administration (FNA) today announced a cross-government crackdown on Supplemental Nutrition Assistance Program (SNAP) retailer fraud in Los Angeles, California. This operation reflects the Trump Administration’s continued commitment to safeguarding taxpayer dollars and ensuring food assistance benefits are available for the eligible Americans who rely on them.

On Thursday, July 2, 2026, the USDA Office of Inspector General (OIG) and Homeland Security Investigations (HSI) executed search warrants at multiple Los Angeles-area SNAP retailer locations. Following the sting, FNA issued formal charge letters to 33 SNAP-authorized retailers across the city. These actions stem from confirmed violations, including trafficking—the illegal exchange of SNAP benefits for cash—and the sale of prohibited items such as alcohol and tobacco, including:

• Six stores selling SNAP benefits in exchange cash.
• Twenty-seven stores exchanging SNAP benefits for a range of ineligible items including beer, hard seltzer, bottles of liquor, a vape device, and other prohibited products.

These unlawful retailers face potential penalties including permanent disqualification from SNAP and significant monetary fines.

“Fraud of any kind is a direct attack on American taxpayers and the vulnerable families who rely on SNAP to survive,” said FNA Acting Administrator Shiela Corley. “These actions reflect USDA’s uncompromising commitment to protecting SNAP by rooting out bad actors who seek to exploit the program for personal gain.”

FNA conducts comprehensive oversight of SNAP-authorized retailers by carrying out tens of thousands of retailer evaluations and nearly 50,000 undercover compliance visits each year. OIG and HSI bring additional investigative strength to these operations by conducting criminal investigations that enable the U.S. Department of Justice to charge the criminal conduct, ensuring violators face the full consequences of their actions.

“Homeland Security Investigations remains committed to combatting fraud in all its form and to ensuring that taxpayer dollars are used to help our neighbors in need and not to line the pockets of greedy criminals,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “Last week’s enforcement operation and criminal arrest of retailer demonstrated that HSI and our law enforcement partners will work tirelessly to bring accountability and deliver consequences to fraudsters everywhere.”

FNA, OIG and HSI remain united in their zero-tolerance approach to fraud, waste and abuse and their ongoing dedication to preserving the integrity of SNAP.

“The days of defrauding government benefit programs are over,” said Acting United States Attorney Bill Essayli. “We’re talking federal prison sentences, not state misdemeanor charges. You’ve been warned.”

To report suspected nutrition assistance fraud, visit fna.usda.gov/fraud

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