5 arrested in Baltimore food stamp fraud scheme

Investigation also uncovers illegal drug distribution operation

Charles Yang (left), Anthony Holman (second), Errol Carthy (third), Travis von Hendricks (right). Police said Jane Yang's photo was not available.

 BALTIMORE —Five people were arrested last week in connection with a food stamp fraud scheme and illegal drug distribution operation at a northwest Baltimore market, state and federal officials announced Thursday.

Heroin, cocaine, marijuana, $129,000, a rifle and packaging materials were recovered during a search of the International Market in the 3700 block of West Belvedere Avenue last week, the City State's Attorney's Office said.

According to an indictment in the case, the general manager of the store, Charles Yang, was part of a scheme from 2011 through this year in which he would illegally give cash to customers who came into the store and used their Supplemental Nutrition Assistance Program (SNAP) benefits card. Officials said Yang would claim fake grocery purchases and then distributed cash in those amounts to himself and the customer.

The indictment said the federal government would then reimburse the store for the benefits because it wasn't aware the purchases were fraudulent.

The U.S. Department of Agriculture said of the more than $2.3 million in SNAP benefits redeemed during the scheme, between $1.2 million and $2 million of that was fraudulent, according to the indictment.

During the investigation, the USDA said it also discovered evidence that the market was being used as an illegal drug distribution hub. City police then got involved in the case.

Yang was charged with conspiring to steal more than $100,000 during a three-year period and conspiring to distribute cocaine and heroin. Yang's daughter, Jane Yang, who owns the market and is the SNAP license holder, was also charged with conspiring to steal more than $100,000 during a three-year period. Officials said she agreed to close the store.

Employee Anthony Holman was charged with conspiracy to sell heroin. Errol Carthy was charged with possession with intent to distribute heroin, and Travis von Hendricks was charged with possessing marijuana.

A week before the scheme was broken up, Baltimore City police arrested 11 people who had been indicted in connection with two separate drug conspiracies operating in that same four-block area of northwest Baltimore, where 16 homicides and 17 nonfatal shootings have occurred since 2010, according to the indictment.

"By conducting collaborative and strategic investigations such as these, we are fighting to eliminate the drug distribution operations that are so frequently associated with violence on our streets and in our neighborhoods," Police Commissioner Anthony W. Batts said.

That police bust also result in eight addition arrests. Five people officers were seeking in connection to those drug conspiracies remain at large.