By: Richard L. Smith
An Essex County business owner has been sentenced to more than two years in federal prison after admitting to his role in a multimillion-dollar fraud scheme involving the federal Supplemental Nutrition Assistance Program (SNAP).
According to a statement released by the U.S. Attorney’s Office, 67-year-old Victor Madera, of New Brunswick, was sentenced on July 1 to 27 months in federal prison by Robert Kirsch in federal court in Trenton.
Madera previously pleaded guilty to conspiracy to defraud SNAP and engaging in SNAP benefits fraud.
Federal prosecutors said Madera owned a medium-sized grocery store in East Orange that was authorized to accept SNAP benefits.
The program, formerly known as food stamps, is funded by the United States Department of Agriculture and is designed to help low-income households purchase eligible food items.
Between May 2017 and November 2024, investigators found that employees at Madera’s store illegally exchanged SNAP benefits for cash.
According to court records, employees processed inflated SNAP transactions, provided recipients with only a portion of the funds in cash, and retained the remaining value.
The fraudulent transactions resulted in SNAP reimbursements that far exceeded the value of eligible food actually purchased.
Authorities determined that Madera’s business unlawfully exchanged more than $2.2 million in SNAP benefits for cash during the course of the scheme.
In addition to the 27-month prison sentence, Judge Kirsch ordered Madera to serve one year of supervised release and pay more than $2.2 million in restitution and forfeiture.