Federal prosecutors accuse a Tacoma market owner of trading SNAP benefits for cash, alleging more than $600,000 was diverted from the nutrition program through an apparent EBT cash-out scheme that began after the store gained SNAP authorization earlier this year.
Federal authorities say Manjit Bedi, a 64-year-old store owner from Kent, Washington, pleaded not guilty when arraigned before U.S. Magistrate Judge Theresa L. Fricke on charges tied to an alleged SNAP cash redemption racket. The indictment claims the scheme involved swapping benefits loaded on electronic benefits transfer cards for cash payouts, with the store keeping a portion of the value.
According to prosecutors, the market received SNAP authorization in February 2024 and the alleged misconduct began in March 2024. The complaint lays out a pattern where Bedi would run a transaction against a recipient’s EBT card and hand that person partial cash while retaining the rest as profit, a tactic that bypasses the program’s intent and rules.
The indictment gives a clear example: one transaction allegedly involved charging $200 to an EBT card, giving the recipient $100 in cash, and keeping $100. Prosecutors say the practice continued long enough and at a large enough volume that the indictment alleges Bedi pocketed at least $600,000 in SNAP benefits for items that were never sold.
The case is set for trial on June 22, 2026, before U.S. District Judge Tiffany M. Cartwright, and the charges include counts of wire fraud and SNAP benefit fraud. Both offenses carry penalties of up to 20 years in prison and a $250,000 fine, according to the indictment filed in federal court.
First Assistant U.S. Attorney Charles Neil Floyd announced the arraignment and emphasized the impact on taxpayers and vulnerable families. “Every assistance dollar lost to fraud is a dollar that could be feeding hungry children,” said First Assistant U.S. Attorney Neil Floyd.
The broader context is hard to ignore: The SNAP program feeds nearly 42 million people, but U.S. Department of Agriculture Secretary Brooke Rollins said the program is stuffed with fraud. Federal prosecutors point to new enforcement efforts aimed at stopping schemes that siphon benefits away from households that need them.
The Department of Justice has established the National Fraud Enforcement Division to investigate and prosecute the misuse of taxpayer dollars, with an explicit focus on benefit program fraud. That effort dovetails with President Trump’s Task Force to Eliminate Fraud, which is described as a whole-of-government push chaired by Vice President J.D. Vance to reduce waste and abuse across federal programs.
Investigators on this case included the U.S. Department of Agriculture Office of Inspector General, the FBI, and the Washington State Department of Health and Human Services. Assistant United States Attorney Victoria Cantore is handling the prosecution, according to court filings.
Federal authorities stress the presumption of innocence: the indictment contains allegations that must be proven in court beyond a reasonable doubt before any conviction can occur. Still, the charges reflect a pattern prosecutors say they are increasingly willing to pursue aggressively, especially when large sums and vulnerable beneficiaries are involved.
From a taxpayer perspective, the case highlights why enforcement matters: alleged schemes that convert benefits into cash reduce the program’s ability to support families buying groceries and increase the strain on oversight resources. Prosecutors argue that strong, visible enforcement can deter others from trying similar tactics and help protect the integrity of federal assistance.
For retailers, the message is clear—accepting SNAP comes with compliance obligations, and alleged deliberate manipulation of benefit transactions can trigger serious federal charges. The indictment and scheduled trial will give a court the chance to weigh the evidence and determine whether the allegations against Bedi meet the standard for conviction.
