Crime & Safety

Bellevue Man Investigated for Food Stamp Fraud Through His Business

Son Hoang Le, who owns a store in White Center, was one of two people who face federal charges of wire fraud in a food stamp scheme.

A Bellevue resident is one of two business owners who face federal charges of wire fraud, after investigators say they uncovered a food stamp trafficking scheme at their adjacent businesses in Seattle, according to a press release by the U.S. Department of Justice.

Investigators say that Magnolia Gin, 52 of Seattle and Son Hoang Le, 35, of Bellevue, allowed people to withdraw cash from their USDA Supplemental Nutrition Assistance Program (SNAP) benefits card, by running it through the Le's store, DP Northwest Halal at 9838 17th Avenue SW, Seattle, Washington, according to the press release.

The state-issued cards are meant to be used only for purchasing food, according to the press release. The cards, which provide federal food assistance to citizens and legal immigrants who fall below certain income levels, are not to be redeemed for cash, according to the state's Basic Food Program.

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Gin was arrested Wednesday morning as part of an ongoing investigation of food stamp trafficking in Western Washington, according to a press release by the U.S. Department of Justice.

According to the criminal complaint, a person working with law enforcement and undercover agents from federal and state law enforcement took electronic benefits cards into Gin's store, Asian Bubble Tea on multiple occasions, the press release stated. Gin would ask the card holder how much money that person wanted, and asked that person to provide the personal identification number, according to the press release. 

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She would leave with the card through the back of the restaurant and return with the cash, according to the press release. Records showed that the cards in question were being run at D.P. Northwest Halal. For example, the card would be swiped for $100, with $60 going to the card holder, and the co-conspirators making a $40 profit, the press release said.

Le also allowed an undercover agent to redeem SNAP benefits in cash at his store in one instance, according to the press release. Bank records also show that Le made multiple cash withdrawals from his business account which was credited with the SNAP benefits, according to the federal department of justice.

In a year, the SNAP redemptions at D.P. Northwest Halal increased from just over $2,000 in April 2010, to more than $80,000 in May 2011, according to the press release. In just the first three weeks of June 2011, the store had redeemed more than $100,000 in SNAP benefits, the press release stated.

A review of state revenue records revealed that in 2010, D.P. Northwest Halal claimed total sales of $274,611, but federal records show that D.P. Northwest Halal had redeemed over $380,000 in SNAP benefits during that same time frame, according to the press release.

“Conducting investigations into fraudulent activities within the Supplemental Nutrition Assistance Program (SNAP),  commonly known as food stamp trafficking by vendors and recipients is a major investigative area for USDA, Office of Inspector General (OIG),” said Special Agent-in-Charge Lori Chan, Western Regional Office, United States Department of Agriculture, Office of Inspector General, San Francisco, California.

Chan said since March 2010, D.P. Northwest Halal withdrew $918,000 in SNAP benefits.

-- Information from the U.S. Department of Justice


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