Prosecutors say eight people ran a fake-deli scheme that drained more than $7 million from food aid cards. Here is what happened and what SNAP users can do.
The Manhattan District Attorney's Office says eight people were indicted for a scheme to steal more than $7 million in SNAP funds, the government food aid many families use to buy groceries. Prosecutors say the group ran what they call a "fraud factory" from the back room of a Yonkers deli and from hotels. The defendants are presumed innocent.
Court documents allege the group set up fake business accounts that let them accept card payments. These are called merchant processing accounts. They then swiped stolen EBT cards, the cards that hold SNAP money, on card readers tied to those accounts. In effect, the money went to fake delis. District Attorney Bragg said the group "paid themselves" this way.
Prosecutors say the scheme ran from April 2023 to September 2025. They also say the money was laundered in Yemen and elsewhere abroad and spent on domestic luxury vehicles. Photos from the case allegedly show the fake operation in the deli and in hotels.
Five defendants are named in the material: Belal Hauter, Milton Rios, Yvette Rivera, Gregory Fabiani and Abdulla Aeza. They face a charge of Conspiracy in the Fourth Degree, plus counts of Grand Larceny and Identity Theft. Hauter is accused of opening accounts and leading Rios and Rivera to open more. Fabiani and Aeza are accused of providing technical support for the card readers.
Prosecutors say thousands of low-income New Yorkers could not buy food or get reimbursed because of the thefts. SNAP is widely used in the state. In 2025, an average of nearly 3 million people, about 15 percent of New York's population, received benefits each month. Bragg said the fraud also harms taxpayers who fund the program.
The state is expected to unveil a more secure EBT system next year. A 2025 report from the city's Department of Investigation supports moving to chip-enabled cards. The material does not say how the cards were stolen, whether any money has been recovered, or how many victims have been repaid. It also does not name the other three people indicted.
If you or someone you know uses SNAP, check the card balance often and report any missing money right away.
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