3 arrested as part of alleged $4-million 'food stamp fraud ring'

Lansing — Three people from Metro Detroit have been arrested for allegedly being part of a "substantial food stamp fraud ring" that involved stolen data and $4 million in purchases at Sam's Club stores, Michigan Attorney General Dana Nessel announced Tuesday.

Travis Newby, 39, of Detroit, Derriun Williams, 23, of Detroit and Vanessa Williams, 47, of Highland Park were arraigned Friday on felony charges, including conducting a criminal enterprise and multiple counts of food stamp fraud, Nessel told reporters during a press conference.

Nessel said the arrests marked the first of many large-scale criminal enterprises that her office's Organized Retail Crime Unit will bring to justice. The unit launched in 2022.

"We want these criminal syndicates to know this: We're coming for them," Nessel said. "We are. This has been permitted to go on for far too long. It's affected far too many people. And we're going to make sure that those who are involved in these types of criminal activities are held accountable."

Individuals in the alleged fraud ring illegally obtained electronic benefit transfer (EBT) card data from 8,000 cardholders, primarily residing in California, according to the Attorney General's office. Participants in the Supplemental Nutrition Assistance Program (SNAP) use EBT cards.

The organization behind the ring reproduced EBT cards in Michigan with the data and used the cards for fraudulent purchases from Sam's Club stores in Metro Detroit, Nessel's office said.

Eric Sterbis, an assistant attorney general, assigned to the Organized Retail Crime Unit, didn't specify on Tuesday how the card data was obtained by the fraud ring. But Sterbis said personal information can be purchased off the internet.

Sterbis said there had been about $4 million in fraudulent purchases associated with out-of-state EBT cards and stores in the Walmart company. Sam's Club is a division of Walmart.

"There are, we believe, others out there still, which is why it's an ongoing investigation," Sterbis said.

The Attorney General's office and the Michigan State Police launched the probe after the Michigan Department of Health and Human Services, and Sam's Club noticed large amounts of EBT purchases. Claire Rushton, senior director of Walmart Global Investigations, said the company was proud to have assisted with the probe.

"Fraud is a problem impacting the retail industry, and it's only through collaborative efforts like this with states, communities and law enforcement that the issue can be addressed holistically," Rushton said.

A person convicted of continuing criminal enterprise can face up to 20 years behind bars.

cmauger@detroitnews.com