An East Orange grocery store owner received a sentence of 27 months behind bars after admitting he ran a $2.2 million fraud scheme on SNAP, the federal government’s food assistance benefits program, according to authorities.

U.S. District Judge Robert Kirsch sentenced Victor Madera in Trenton federal court July 1, the U.S. Attorney’s Office for the District of New Jersey said. The 67-year-old New Brunswick resident previously pleaded guilty to one count of conspiracy to defraud Supplemental Nutrition Assistance Program and one count of engaging in benefits fraud.

In addition to the prison term, Madera was sentenced to one year of supervised release. He must also pay over $2.2 million in restitution and forfeiture, officials said.

The U.S. Attorney’s Office did not identify the medium-sized store that Madera operated. However, it did note the location is an authorized SNAP participant.

Formerly known as food stamps, SNAP is a federal government funded program designed to help low-income households purchase eligible food items. The initiative serves roughly 42 million low-income Americans. The total figure includes about 800,000 New Jerseyans.

The alleged scheme

Between May 2017 and November 2024, investigators found that employees at Madera’s store illegally exchanged SNAP benefits for cash, officials said.

According to authorities, workers would enter inflated dollar amounts for allegedly eligible SNAP transactions. Then, they would give SNAP recipients a percentage of the transaction’s value in cash while pocketing the remainder, officials said.

“As a result of this conduct, Madera received SNAP redemptions far in excess of the true value of food and other SNAP-eligible items actually received by SNAP recipients,” the U.S. Attorney’s Office said.

Authorities determined that Madera’s business unlawfully exchanged more than $2.2 million in SNAP benefits for cash during the course of the scheme. It is unclear if any employees or customers were charged.

“Victor is deeply remorseful for his involvement in the SNAP fraud scheme,” Madera’s attorney, Stephen Turano, told NJBIZ. “It is contrary to how he has lived the vast majority of his life and we are confident he will continue to make a positive impact on his family, loved ones, and his community.”

The U.S. Attorney’s Office did not immediately respond to a request for comment.