3 Arrested on Felony Charges for Allegedly Perpetrating a $4 Million 'Substantial Food Stamp Fraud Ring' With Stolen Data The alleged fraud scheme illegally obtained electronic benefit transfer (EBT) card data from 8,000 people.

By Sam Silverman

Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images
In this photo illustration, Sams Club logo seen displayed on a tablet.

Three people were arrested on felony charges last week for their alleged involvement in a "substantial food stamp fraud ring."

The scheme is responsible for stealing $4 million in purchases from Sam's Club stores by illegally obtaining data from 8,000 electronic benefit transfers (EBT) cardholders, which are used by people who are involved in the Supplemental Nutrition Assistance Program (SNAP), the Michigan Attorney General's office announced in a press conference on Tuesday, per The Detroit News.

Travis Newby, 39, Derriun Williams, 23, and Vanessa Williams, 47, were arraigned on Friday and face multiple counts of food stamp fraud and conducting a criminal enterprise. They could face up to 20 years in prison.

RELATED: Massachusetts Father-Son Duo Slammed With Nearly 10-Year Prison Sentence for Perpetrating an 'Elaborate' $20 Million Lottery Scheme

The scheme targeted EBT cardholders (primarily in California), which were then reproduced in Michigan to make fraudulent purchases.

At this time, it's unclear exactly how the card data was obtained, according to Eric Sterbis, an assistant attorney general, per The Detroit News.

The investigation is ongoing and more arrests are possible, Sterbis noted.

The investigation was initially launched after Sam's Club and the Michigan Department of Health and Human Services reported large amounts of EBT purchases.

"Fraud is a problem impacting the retail industry," said Claire Rushton, senior director of Walmart Global Investigations, in a statement to the outlet. "It's only through collaborative efforts like this with states, communities and law enforcement that the issue can be addressed holistically."

Sam's Club is a division of Walmart.

Sam Silverman

Entrepreneur Staff

Content Strategy Editor

Sam Silverman is a content strategy editor at Entrepreneur Media. She specializes in search engine optimization (SEO), and her work can be found in The US Sun, Nicki Swift, In Touch Weekly, Life & Style and Health. She writes for our news team with a focus on investigating scandals. Her coverage and expertise span from business news, entrepreneurship, technology, and true crime, to the latest in entertainment and TV news. Sam is a graduate of Lehigh University and currently resides in NYC. 

Editor's Pick

Related Topics

Business News

JPMorgan CEO Jamie Dimon Says AI 'Is Real' and Will Eliminate the 5-Day Work Week. Here's How His Company's Going All In.

The financial services firm advertised for thousands of AI-related roles earlier this year.

Business News

Marketing Company Sues Elon Musk's X Corp for Twitter Rebrand That Caused 'Serious Irreparable Harm' to Its Business

X Social Media claims that X Corp's rebrand has caused consumer confusion and harmed its brand, which has used "X" in its name since 2016.

Personal Finance

Save an Additional $20 on Tykr Stock Screener for a Limited Time

This screener can help you manage investments better.

Employee Experience & Recruiting

You're the Reason Your Sales Reps Quit. Here's What to Do About It.

Turnover is a crushing problem for sales teams. Here's how you're contributing and what to do about it.


How to Improve Work-Life Balance and Productivity While Working Remotely

How to maintain a proper work-life balance and increase productivity while working from home.


How to Create A Video-Based Employee Onboarding Program To Maximize New Hire Productivity

This article covers how startups CEOs and hiring managers can create a flexible, video-based onboarding process to maximize new hire ramp and productivity.