NEWARK, NJ — An Essex County father and son have been sentenced to prison for their roles in exchanging $3.49 million in Supplemental Nutrition Assistance Program benefits for cash, U.S. Attorney Craig Carpenito announced March 5.
Jose Perdomo, 35, of Newark, was sentenced to 15 months of home detention and five years of probation. He previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of SNAP fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity.
His father, Juan Perdomo, 60, of Newark, was sentenced March 3, 2020, to three years and two months months in prison. He previously pleaded guilty to an information charging him with one count of SNAP fraud, one count of engaging in monetary transactions in property derived from SNAP fraud and one count of aiding in the preparation of a materially false tax return. Salas imposed the sentences in Newark federal court.
According to documents filed in this case and statements made in court, from October 2015 to September 2018, Juan Perdomo ran M&R Supermarket, a business that was authorized to accept benefits provided by SNAP. Retail food stores approved for participation may sell food in exchange for SNAP benefits, but may not exchange SNAP benefits for cash.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in 11 “purchases” at M&R Supermarket, where Juan and Jose Perdomo exchanged money for SNAP benefits.
The bank account of M&R Supermarket showed numerous cash withdrawals in excess of $10,000 by Juan Perdomo, as well as several cashed checks in excess of $10,000 by Jose Perdomo.
Jose and Juan Perdomo were each ordered to pay $4.8 million in restitution to the U.S. Department of Agriculture; Juan Perdomo was ordered to pay $400,099 in restitution to the IRS and was also sentenced to three years of supervised release.
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