Four charged in Massachusetts for $1 million government benefit fraud scheme

BOSTON – Four individuals, including two Venezuelan nationals, have been charged in a $1 million fraud ring that used 115 stolen identities to exploit pandemic-era unemployment and food stamp programs, the U.S. Department of Justice announced Tuesday.

Federal prosecutors said the suspects stole personal information from victims across the country—including children—to illegally obtain Supplemental Nutrition Assistance Program (SNAP) benefits in Massachusetts and Rhode Island. The group also secured fraudulent pandemic unemployment assistance from Massachusetts, New York, Pennsylvania, Ohio, and Nevada.

The defendants are identified as Joel Vicioso Fernandez, 42; Raul Fernandez Vicioso, 37; Roman Vequiz Fernandez, 32; and Coralba Albarracin Siniva, 24.

According to the allegations, the group used the stolen SNAP benefits to purchase bulk quantities of chicken, beef, and pork from wholesalers. The meat was used to supply El Primo, a restaurant in Leominster, Massachusetts, operated by one of the defendants.

The group is also accused of pocketing $700,000 through fraudulent Pandemic Unemployment Assistance (PUA) applications. Prosecutors allege the profits from the scheme were laundered and wired to individuals in Venezuela and the Dominican Republic.

This case exposes a sophisticated fraud apparatus that merged large-scale identity theft with the targeted exploitation of federal social safety nets. Central to the scheme was a calculated form of benefit arbitrage: by utilizing Supplemental Nutrition Assistance Program (SNAP) benefits to procure raw inventory for the El Primo restaurant, the defendants effectively neutralized their primary operating costs. This allowed the enterprise to convert non-cash government subsidies into direct, high-margin cash profits through legitimate-facing commercial sales.

Beyond simple welfare fraud, the operation functioned as a money laundering engine. The restaurant served as a front to legitimize illicit proceeds, while the subsequent transfer of funds abroad suggests a structured criminal network capable of obfuscating capital flows and complicating asset recovery efforts.

The case further underscores the systemic vulnerabilities inherent in the administration of emergency relief, specifically the Pandemic Unemployment Assistance (PUA) program. The federal government’s decision to prioritize disbursement speed over rigorous verification during the COVID-19 crisis created a regulatory vacuum that invited systematic exploitation. This incident serves as a stark policy reminder: while rapid aid is essential during a crisis, the lack of robust oversight mechanisms poses a long-term threat to fiscal integrity and public trust. Tightening verification protocols remains a critical imperative for protecting public expenditures against organized financial crime.

While this case does not directly involve the Vietnamese-American community, it serves as a sobering reminder for small business owners across all backgrounds, including our own. From the phở restaurants of Little Saigon to nail salons nationwide, using a legitimate storefront to mask or profit from welfare fraud carries severe legal risks. To avoid devastating legal fallout, business owners must ensure their supply chains and finances are fully transparent and strictly insulated from any illicit funds or questionable revenue sources.