Source: US FBI
LYNCHBURG, Va. – A federal grand jury in Charlottesville returned an indictment today charging a Lynchburg store owner with federal food stamp and wire fraud.
Rajan Babbar, 59, of Lynchburg, Virginia, the owner of Taste of India, a medium-sized grocery store in Lynchburg, is accused of fraud regarding the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. SNAP was established by the United States Government to alleviate hunger and malnutrition among low- and middle-income families by increasing their food purchasing power and ability.
The grand jury has charged Babbar with one count of SNAP benefits fraud, three counts of wire fraud, and four counts of transacting in criminally derived property.
According to the indictment, in 2016 Babbar filed paperwork with the United States Department of Agriculture’s (USDA) Food and Nutrition Service (FNS) for Taste of India to become a SNAP retailer. In December 2016, FNS approved Babbar’s application.
Beginning in or around April 2021, it is alleged that SNAP sales at Taste of India skyrocketed from their previous levels. In the three-year span between 2018 and 2020, the average monthly SNAP sales at the store were approximately $5,324 per month. In 2021 and 2022, the average monthly SNAP sales were approximately $53,147 per month. In 2023 and 2024, the average monthly SNAP sales were approximately $60,385 per month.
The indictment alleges that Babbar permitted individuals to exchange their SNAP benefits for cash. Babbar allegedly rang-up false transactions for nonexistent food items and other products. He then provided those individuals with cash for approximately one-half the value of the SNAP benefits.
Along with the eight criminal counts, the indictment includes a notice of forfeiture seeking to criminally forfeit approximately $383,232 in funds, along with a commercial real estate property in Lynchburg.
United States Attorney C. Todd Gilbert, Charmeka Parker, Special Agent in Charge of the USDA-OIG, and Stephen Farina, Acting Special Agent in Charge of the FBI’s Richmond Division.
The USDA-OIG, FBI, and Lynchburg Police Department are investigating the case.
Assistant U.S. Attorney Lee Brett is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.