A massive fraud ring allegedly ran a “fraud factory” out of a Yonkers deli, stealing $7 million in food benefits meant for hungry New Yorkers. Instead of helping people buy groceries, the group used the stolen cash to fund luxury cars and send tens of thousands of dollars overseas. On Thursday, Nadia Shihata, the Department of Investigation Commissioner, and Manhattan District Attorney Alvin Bragg declared the charges, signifying a significant strike against this suspected scheme.
The operation targeted thousands of SNAP recipients between April 2023 and September 2025. Some victims never got their benefits back or saw their accounts drained the moment money was deposited. This isn’t just a theft of tax dollars; it’s a theft of food from families who need it most. The alleged thieves used card-skimming devices and fake merchant accounts to pull this off.
The Mechanics of the Theft
According to prosecutors, the defendants used the names of real and fake delis to set up merchant processing accounts. They then obtained point-of-sale systems capable of handling Electronic Benefits Transfer transactions. According to investigators, the group utilized stolen EBT account numbers and PINs, frequently obtained via card-skimming devices, to generate duplicate cards. They allegedly tracked when benefits hit the accounts and drained them before legitimate users could shop.
Manhattan District Attorney Alvin Bragg explained the timing of the thefts in a statement. “The defendants allegedly tracked the timing of benefit funds and drained accounts before the legitimate SNAP recipient could buy food and other necessities, eventually stealing more than $7 million,” Bragg said, according to Gothamist. The fraud affected thousands of people, with some residents left without any reimbursement for their stolen benefits.
Where the Money Went
Once the money was stolen, the group allegedly bought a string of luxury vehicles. Substantial cash amounts were also forwarded to Yemen plus other global destinations. Department of Investigation Commissioner Nadia Shihata highlighted the dual harm caused by the scheme. “These alleged crimes not only resulted in the pilfering of public funds from a critical City-administered food program, but also left vulnerable New Yorkers without essential benefits to purchase groceries,” Shihata said.
Eight people were indicted in connection with the alleged scheme. On October 29, five defendants were identified: Belal Hauter (34), Gregory Fabiani (46), Abdulla Aezah (35), Milton Rios (53), and Yvette Rivera (58). Each faced charges in a NYS Supreme Court indictment involving fourth-degree conspiracy alongside multiple counts of grand larceny and identity theft.
This case hits hard because it shows how organized crime can exploit the very systems designed to help the working class. When we talk about safety and fairness in New York, this is the kind of corruption we need to crush. It’s not enough to just arrest people; we need to ensure that the people who lost their food money get it back. The fact that they allegedly sent money out of the country while locals went hungry makes this even more infuriating.
The sheer scale of the operation, running out of a deli back room and hotels, shows a brazen disregard for the law. It’s a slap in the face to every honest small business owner and every taxpayer in this city. We expect our government to protect these programs, not let them be drained by a ring of thieves. Bragg’s statement drives the point home: “SNAP and EBT fraud harms New Yorkers in need of assistance and the New Yorkers whose tax dollars fund these essential programs,” he said, according to amNewYork.
Now that the indictment is out, the focus shifts to holding these eight individuals accountable in court. The charges are serious, and the evidence, including photographic proof of their operation, appears strong. New Yorkers deserve to know that their tax dollars are safe and that the most vulnerable among us are protected from predators.
Now, the eight individuals confront accusations regarding conspiracy, grand larceny, and identity theft. Legal representation details for the arrested parties were not immediately accessible when the announcement occurred. The next step is for these defendants to appear in court to face the charges filed by Manhattan District Attorney Alvin Bragg’s office.
Prosecutors will need to prove the specific counts of grand larceny and identity theft to secure convictions. Given the detailed evidence gathered, including the tracking of funds and the physical seizure of equipment, the path forward is clear. The legal process will determine if these eight will serve time for stripping New Yorkers of their food security.
This is opinion and commentary from the RapForMayor team.
