She once sat inside the very federal office meant to stop food stamp fraud. Instead, prosecutors say, Arlasa Davis quietly helped engineer one of the largest SNAP scams in U.S. history — a betrayal that siphoned tens of millions from a program designed to feed struggling families.
On Monday, that betrayal landed the former U.S. Department of Agriculture employee a 24-month prison sentence, a dramatic reduction from the decades behind bars she originally faced.
A landmark SNAP fraud case comes to sentencing
The U.S. Department of Justice announced that Davis, 56, a New York resident and former USDA employee, was sentenced to two years in federal prison followed by two years of supervised release. She had pleaded guilty earlier this year to multiple felony counts tied to a sprawling Supplemental Nutrition Assistance Program fraud scheme that ultimately cost taxpayers more than $66 million.
At the height of the investigation, the U.S. Attorney’s Office for the Southern District of New York didn’t mince words, calling it “one of the largest food stamp frauds in U.S. history.” The sentencing closes a chapter on a case that stunned federal regulators not just for its scale, but for where the breach came from: inside the government itself.
“This conviction and sentence send a clear message,” said Sean Buckley, deputy U.S. attorney for the Southern District of New York, “that exploitation of funds intended for families will result in serious consequences.”
The DOJ announcement can be reviewed directly at https://www.justice.gov/usao-sdny.
How an insider turned enforcement tools into weapons
According to court documents, Davis worked within the USDA division tasked with detecting and preventing SNAP fraud — effectively giving her a front-row seat to the safeguards meant to stop criminals.
Prosecutors said she used that access to steal Electronic Benefit Transfer (EBT) license numbers, critical identifiers that allow businesses to legally process SNAP transactions. Rather than hacking systems, Davis allegedly took something far more old-school: photos of handwritten lists of valid license numbers.
Those photos were sent to co-conspirators, who then used the stolen credentials to obtain EBT terminals for businesses that were never authorized to accept SNAP benefits. Smoke shops and other unapproved retailers suddenly had access to federal food assistance funds.
Once plugged into the system, those businesses processed millions of dollars in fraudulent SNAP transactions, turning benefits meant for groceries into cash or ineligible purchases.
Federal filings show the fraud ring conducted at least $36 million in fraudulent transactions using the stolen credentials, with the broader scheme ultimately topping $66 million in losses.
Bribes hidden in plain sight
Davis didn’t operate for free.
In exchange for her role, prosecutors said she received bribes carefully disguised as innocent gestures — “birthday gifts,” “flowers,” and similar offerings designed to avoid raising suspicion. The Department of Justice said these payments were directly tied to her continued cooperation with the fraud ring.
The tactic underscores how sophisticated the operation became, blending low-tech methods with insider knowledge to stay under the radar for years.
Details of SNAP fraud enforcement and program oversight are outlined by the USDA at https://www.usda.gov/snap.
The wider fraud ring and its alleged ringleader
Davis wasn’t alone. Prosecutors charged several other individuals in connection with the scheme, including Michael Kehoe, Mohamad Nawafleh, Omar Alrawashdeh, Gamal Obaid, and Emad Alrawashdeh.
Authorities identified Kehoe as the ringleader of the operation. Prosecutors specifically noted that he has no relation to Missouri Gov. Mike Kehoe, a clarification included to avoid public confusion as the case gained attention.
The group allegedly coordinated the placement of EBT terminals, recruited sham businesses, and orchestrated the flow of fraudulent transactions once access was secured.
Why the sentence was far shorter than expected
Perhaps the most striking element of Monday’s announcement was not the conviction itself, but the length of the sentence.
When charges were first announced in May, Davis was staring down an estimated 75 years in prison if convicted on all counts. Those charges included:
| Charge | Potential Impact |
|---|---|
| Conspiracy to steal government funds | Long federal sentence |
| Theft of government funds | Major felony |
| Misappropriation of USDA benefits | Program-specific felony |
| Conspiracy to commit bribery | Corruption charge |
| Bribery | Federal felony |
| Conspiracy to commit honest services wire fraud | White-collar felony |
Through her guilty plea and cooperation, Davis avoided that worst-case scenario. Her 24-month sentence reflects plea negotiations, sentencing guidelines, and factors weighed by the court, though prosecutors have not publicly detailed which mitigating elements carried the most weight.
Federal sentencing practices and guidelines are publicly available through the U.S. Sentencing Commission at https://www.ussc.gov.
Public reaction and government response
The case has drawn renewed scrutiny to how SNAP oversight works and how much trust is placed in individual government employees. While safeguards exist, this case exposed how insider access can override even the most robust systems.
On social media, senior government officials underscored the seriousness of the offense. A statement shared by Deputy Secretary Xochitl Torres Small highlighted the breach of public trust involved, reinforcing the administration’s stance on protecting food assistance programs. The post can be viewed here:
For advocates of SNAP recipients, the anger is personal. Fraud on this scale doesn’t just cost money; it fuels political attacks on assistance programs and increases scrutiny on families who rely on them legitimately.
Why this case matters beyond one sentence
This wasn’t just another fraud conviction. It was a stress test of the SNAP system itself.
The program feeds more than 40 million Americans, according to USDA data, and depends heavily on trust, compliance, and internal oversight. When someone tasked with enforcement becomes a facilitator of fraud, it raises uncomfortable questions about internal controls and accountability.
At the same time, prosecutors have emphasized that cases like this are outliers, not the norm, and that the overwhelming majority of SNAP benefits go to eligible families and are used appropriately.
