A Tacoma-area store owner is accused of running a scheme that illegally exchanged food assistance benefits for cash, resulting in more than $600,000 in losses to a federal nutrition program, according to prosecutors.
Manjit Bedi, 64, of Kent, was arraigned Wednesday, April 22, in Tacoma federal court on multiple counts of wire fraud and SNAP benefit fraud, according to the US Attorney’s Office.
Prosecutors allege Bedi owned and operated a small Tacoma grocery store that was approved to accept Supplemental Nutrition Assistance Program benefits in February 2024.
Beginning the following month, Bedi allegedly allowed customers to exchange their benefits for cash at a reduced value, according to the indictment.
In one example outlined by prosecutors, a customer would be charged $200 on an electronic benefits transfer card and receive $100 in cash, while Bedi kept the remaining amount as profit, according to the indictment.
Authorities allege the scheme resulted in at least $600,000 in SNAP funds being redeemed for food that was never sold.
“Every assistance dollar lost to fraud is a dollar that could be feeding hungry children,” First Assistant US Attorney Charles Neil Floyd said. “This crime steals from taxpayers — including our most needy, cutting the dollars they have for food.”
Wire fraud and SNAP benefit fraud each carry potential penalties of up to 20 years in prison and fines of up to $250,000.
Bedi pleaded not guilty before US Magistrate Judge Theresa Fricke, and a trial is scheduled to begin Monday, June 22.
The case was investigated by the US Department of Agriculture Office of Inspector General, the FBI, and the Washington State Department of Social and Health Services.
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