An Essex County, New Jersey business owner was sentenced to 27 months in prison for defrauding the Supplemental Nutrition Assistance Program (SNAP) of over $2 million.
Victor Madera, 67, of New Brunswick, New Jersey, was sentenced on July 1, 2026, before U.S. District Judge Robert Kirsch in Trenton federal court. He previously pleaded guilty to an information charging him with one count of conspiracy to defraud SNAP and one count of engaging in SNAP benefits fraud.
Court documents say that Madera owned a medium-sized grocery store in East Orange, New Jersey, and was an authorized participant in SNAP.
SNAP, formerly known as the food stamp program, is a U.S. Department of Agriculture program that uses federal tax dollars to subsidize low-income households, providing those households the opportunity to maintain a more nutritious diet by increasing their purchasing power of eligible food products.
Between May 2017 and November 2024, employees at Madera’s business illegally exchanged SNAP benefits for cash. The employees entered inflated dollar amounts for allegedly eligible SNAP transactions and provided SNAP recipients a percentage of the transaction’s value in cash, keeping the remainder.
As a result of this conduct, Madera received SNAP redemptions far in excess of the true value of food and other SNAP-eligible items actually received by SNAP recipients. Madera, through his business, unlawfully exchanged over $2.2 million of SNAP benefits for cash.
Essex County Businessman Sentenced to Prison for $2 Million Food Stamp Fraud Scheme https://t.co/F6yIPlI0ZO
— NJ US Attorney (@USAO_NJ) July 6, 2026
In addition to the prison term, Judge Kirsch sentenced Madera to one year of supervised release and ordered him to pay over $2.2 million in restitution and forfeiture.
The SNAP program helps feed about 41 million people. The program started in 1939 and ended in 1943 until it was restarted in 1961.
The program’s goal is to help low-income Americans afford groceries, but many people steal from the program either by lying about their income, not reporting living with someone else who earns over the income limit, or by trading benefits for cash or items that aren’t eligible for the program, such as liquor, cigarettes, or lottery tickets.
The U.S. Department of Agriculture funds part of the program administered by states. The federal government's crackdown on SNAP fraud has notched nearly 1,000 arrests since February 2025, according to Secretary Brooke Rollins.
🚨 TUESDAY TAKEDOWN 🚨
— Secretary Brooke Rollins (@SecRollins) June 23, 2026
Steal from SNAP. Get caught and arrested.
8 fraudsters just learned the hard way: the @USDA_FNA is watching.
Amounts ranged from $1,000+ to a staggering $2.8 MILLION — all stolen from the program meant to help American families.
Since February 2025, we’ve… pic.twitter.com/QAwMENCl9E
U.S. Attorney Frazer credited special agents of the U.S. Department of Agriculture – Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Charmeka Parker, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit in Newark.
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