ALBANY, N.Y. -- New York State Attorney General Eric T. Schneiderman, along with U.S. Department of Agriculture's Office of Inspector General, announced the felony conviction of a Long Island convenience store operator who admitted to stealing more than $668,000 from the federal Supplemental Nutrition Assistance Program (SNAP).
Ravinder Parkash defrauded the USDA by illegally exchanging SNAP food stamp benefits for cash and submitting fraudulent transactions for payment at his Riverhead, N.Y., convenience store. Parkash pleaded guilty in Suffolk County Supreme Court before Justice John B. Collins. He faces up to four years in state prison. Also convicted for the scheme are his wife, Prabha Rani, who will receive a jail sentence, and their corporation, Shivani Enterprises Inc. The defendants must also pay restitution in the amount of $566,011.49 to SNAP.
Ravinder Parkash, 60, pleaded guilty to grand larceny in the second degree; money laundering in the second degree, a felony misuse of food stamps (over $50,000); four counts of falsifying business records in the first degree; and conspiracy. Parkash will be sentenced to one and a third to four years in state prison.
His wife, Prabha Rani, 59, of Riverhead, pleaded guilty to grand larceny in the third degree,; falsifying business records in the first degree; misuse of food stamps (over $3,000); and conspiracy. Rani will be sentenced to 60 days jail and five years' probation.
Their corporation, Shivani Enterprises, pleaded guilty to grand larceny in the second degree; 24 counts of grand larceny in the fourth degree; and conspiracy. The corporation will be dissolved.
Parkash, Rani and Shivani Enterprises are jointly liable for paying restitution in the amount of $566,011.49 to SNAP.
In addition to today's guilty pleas, 22 SNAP cardholders have pleaded guilty to misuse of food stamps as part of the AG's case.
In the wake of Hurricane Sandy, the USDA provided emergency benefits to all SNAP recipients in affected areas. Numerous SNAP recipients sold these Sandy benefits to Parkash and his wife, diverting tens of thousands of dollars from those in need.
As part of their guilty pleas, Parkash and Rani admitted that between April 2010 and May 2013, they conspired with dozens of SNAP cardholders to process phantom SNAP transactions at their gas station and convenience store without selling any food.
Parkash and Rani paid SNAP recipients 50% of the value of their SNAP benefits in cash, then charged the USDA the full value of the phony transaction and kept the difference. Parkash then laundered the proceeds of the illegal scheme through a bank account set up for New York State Lottery sales at the store.
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