CLEVELAND — The Ohio Investigative Unit (OIU) has announced the conviction of Rup Chhetri, 33 of Cleveland, following an investigation into the illegal use of Supplemental Nutrition Assistance Program (SNAP) benefits at a local retailer.
Chhetri, the owner of Sagarmatha Home Décor, was convicted in the Cuyahoga County Common Pleas Court on the following charges:
- Illegal Use of SNAP Benefits
- Money Laundering
- Theft
Following his conviction, Chhetri was sentenced to 18 months in prison and ordered to forfeit more than $63,000 seized during the investigation.
These funds will be paid as restitution to the Cuyahoga County Department of Jobs and Family Services.
Understanding SNAP Trafficking
SNAP trafficking is a federal offense where a retailer illegally exchanges SNAP benefits for cash rather than qualifying items. Retailers often “buy” the benefits at a discounted rate, for example, offering a recipient 40 cents per dollar for their benefits.
The retailer can then use the electronic benefit transfer (EBT) card to shop at another store and/or stock their own business or home.
During the investigation, OIU agents trafficked more than $17,000 benefits at Chhetri’s business. Chhetri paid $7,300 for these benefits, which he then used to purchase personal items and items to stock his business.
“The illegal exchange of SNAP benefits for cash undermines the program designed to provide assistance to those in need,” said OIU Senior Enforcement Commander Greg Croft. “Instead, it diverts resources away from families who need them.”
Following this case, Chhetri will be referred for permanent disqualification from SNAP.
The Ohio Investigative Unit was assisted in this investigation by the U.S. Secret Service Money Laundering Task Force and the Cuyahoga County Prosecutor’s Office.
How to report SNAP fraud
In response to growing fraud concerns, EBT recipients are reminded to take precautions to protect their benefits.
Recipients should keep their EBT card safe, never share their card number or PIN over the phone or via text, and report any suspicious transactions immediately to the Ohio Department of Job and Family Services at https://jfs.ohio.gov/help-center/report-fraud.
OIU encourages the public to report any suspected SNAP violations, such as trafficking, retailers who fraudulently accept benefits, or others who illegally acquire and misuse SNAP benefits.
To report SNAP violations, please visit oiu.ohio.gov.
About OIU
The Ohio Investigative Unit enforces Ohio’s alcohol, tobacco, cannabis, and SNAP fraud laws. OIU agents are sworn peace officers responsible for carrying out these responsibilities and enforcing criminal violations that occur in relation to their investigative duties.