Eight people have been indicted in New York over an alleged scheme to steal more than $7 million in food assistance benefits, with prosecutors saying thousands of recipients were affected and many have not been reimbursed.
Manhattan District Attorney Alvin Bragg and New York City’s Department of Investigation announced the indictment on Thursday, 29 October 2026. The case concerns alleged theft from the Supplemental Nutrition Assistance Program (SNAP), which helps eligible low-income Americans buy food. Recipients access benefits using Electronic Benefits Transfer (EBT) cards. The district attorney’s official statement says the alleged operation ran from April 2023 to September 2025.
How the alleged operation worked
Prosecutors allege that the defendants obtained card numbers and personal identification numbers (PINs), largely through illegal card-skimming equipment. They then created copies of EBT cards and used payment terminals linked to merchant accounts set up in the names of real or fictitious delis and grocery shops.
According to the indictment announcement, those involved monitored when benefits were due to arrive. They allegedly processed transactions almost immediately after the accounts were topped up, sometimes draining the balances before the legitimate cardholders could buy groceries.
Investigators say photographs recovered through court-authorised searches showed numerous payment terminals, receipts and cloned EBT cards in a back room at a Yonkers deli and in hotel rooms. Prosecutors allege that some proceeds funded luxury vehicles and that tens of thousands of dollars were transferred to Yemen and other overseas destinations.
Who has been charged?
Eight people face charges, including fourth-degree conspiracy and various counts of grand larceny and identity theft. The district attorney publicly named five people and outlined their alleged roles:
- Belal Hauter, 34, is alleged to have led the conspiracy and directed the opening of merchant accounts.
- Gregory Fabiani, 46, and Abdulla Aezah, 35, allegedly helped establish accounts and provided technical support.
- Milton Rios, 53, and Yvette Rivera, 58, are accused of opening additional merchant processing and bank accounts.
Local broadcaster ABC7 New York reported on 30 October that three of the eight defendants had been arraigned on Thursday and pleaded not guilty. All eight are presumed innocent unless and until proven guilty. The charges and alleged financial total have not been established by a conviction.
The consequences for benefit recipients
Prosecutors say the operation affected thousands of people, including recipients who discovered their balances had vanished on the day their benefits were deposited. Many, according to the district attorney, have not received reimbursement.
New York officials have warned that vulnerable households can lose money needed for food through EBT card skimming. In July 2026, Governor Kathy Hochul’s office said that federal funding to replace stolen SNAP benefits ended in late 2024. That is part of the wider context of why some affected recipients may struggle to recover their losses.
Why card security is under scrutiny
Much of the US EBT system has historically relied on magnetic-stripe cards that can be copied after thieves obtain account information and PINs. In September 2025, the US Government Accountability Office reported that state agencies had reimbursed more than $320 million in approved SNAP benefit-theft claims between October 2022 and 20 December 2024. That is a nationwide figure, not an estimate of losses in this New York prosecution.
New York has committed to issuing more secure chip-enabled EBT cards from the first quarter of 2027. The state’s published timetable envisages approximately two million new cards. Officials say the technology should greatly reduce the vulnerability to skimming; it does not mean card theft will become impossible.
What we know and what remains unknown
The indictment and its broad allegations are confirmed by the Manhattan District Attorney’s Office. The full identity of every defendant, the precise amount each victim allegedly lost and how much may ultimately be recovered have not been established in the public announcement. The prosecution is ongoing, and the allegations have not been tested to a final verdict.
Watch the FOX 5 New York report
Sources
- Manhattan District Attorney’s Office, indictment announcement, 29 October 2026
- ABC7 New York, courtroom and arraignment reporting, 30 October 2026
- Office of New York Governor Kathy Hochul, chip-enabled EBT cards, 13 July 2026
- US Government Accountability Office, SNAP benefit theft report, 25 September 2025
- FOX 5 New York, video report
