A complex fraud operation, involving fake delis and cloned electronic benefit transfer (EBT) cards, allegedly siphoned more than $7 million in food stamp benefits from vulnerable New Yorkers over a two-year period. Eight people have been indicted in connection with the scheme, which prosecutors say targeted thousands of individuals reliant on government assistance for essential groceries.
The alleged conspiracy, which ran from April 2023 to September 2025, involved setting up merchant accounts under the guise of real and fictitious food businesses. These accounts were allegedly used to process fraudulent transactions on stolen EBT card details and PIN numbers, which were then used to create duplicate cards. The group is accused of closely monitoring monthly SNAP benefit deposits, striking almost immediately to drain accounts before recipients could make purchases.
Manhattan District Attorney Alvin Bragg described the operation as a "calculated attack" on those depending on aid for basic necessities. "The defendants allegedly tracked the timing of benefit funds and drained accounts before the legitimate SNAP recipient could buy food and other necessities," Bragg stated.
Authorities allege that 34-year-old Belal Hauter masterminded the operation, directing others to open numerous merchant processing and linked bank accounts under various food business names. Gregory Fabiani, 46, and Abdulla Aezah, 35, are accused of establishing these accounts and providing technical support for the payment machines used in the scheme. Milton Rios, 53, and Yvette Rivera, 58, are also named as defendants accused of opening additional accounts to facilitate the operation.
Investigators reportedly uncovered evidence of the fraud, described as a "fraud factory," operating from the back rooms of a Yonkers deli and hotel rooms. Seized photographs allegedly showed multiple payment terminals, numerous transaction receipts, and dozens of cloned EBT cards.
According to prosecutors, the illicit funds were allegedly used to purchase luxury vehicles, with tens of thousands of dollars also reportedly transferred to international destinations, including Yemen.
Department of Investigation Commissioner Nadia Shihata highlighted the dual impact of the alleged crimes, stating, "These alleged crimes not only resulted in the pilfering of public funds from a critical City-administered food program, but also left vulnerable New Yorkers without essential benefits to purchase groceries."
The case also brings attention to the growing issue of EBT card skimming, where criminals install devices on payment terminals to steal card details and PINs. Authorities are advising EBT cardholders to inspect card readers for suspicious devices, change PINs regularly, and refrain from sharing security information. New York State plans to introduce more secure chip-enabled EBT cards in early 2027, a measure intended to deter such fraudulent activities.
All eight defendants face charges including fourth-degree conspiracy, grand larceny, and identity theft. These charges remain allegations, and the defendants are presumed innocent unless proven guilty.