Cape man to serve at least 21 months in prison for food-stamp fraud

A former Cape Girardeau businessman on Monday was sentenced to 21 months in federal prison and three years of supervised release and was ordered to pay back $550,000 in Supplemental Nutrition Assistance Program benefits in U.S. District Court in Cape Girardeau.

Patrick Buck, 46, of Cape Girardeau pleaded guilty to four felony counts of unauthorized use of SNAP benefits, also known as food stamps, in May.

Some of the conditions for Buck’s supervised release include paying restitution to the U.S. Department of Agriculture, allowing the probation office and financial litigation unit of the U.S. Attorney’s Office to access requested financial information, being prohibited from incurring new credit charges without the approval of the probation office and being required to pay any money received from income-tax refunds, inheritances or judgments to pay restitution, according to the judgment by federal Judge Ronnie White.

Buck is suggested to make payments of $500 or more monthly, White wrote.

If he violates his parole, Buck could receive an additional four to 27 years in prison, depending on his criminal history, according to federal probation guidelines.

The sentence met the recommendations of the U.S. Attorney’s Office, which asked for $550,000 in restitution — matching the amount of illegally redeemed benefits specified in the four counts — and 21 to 27 months of prison time.

“Defendant was well aware of the rules regarding redeeming food stamps at his store for cash and on credit, and he decided to break those rules,” federal prosecutor Richard Callahan wrote in the response to the defendant’s pre-sentence memorandum.

“A sentence below the range of 21 to 27 months will not reflect the serious nature of the offense here, or adequately achieve the sentencing goals of punishment and deterrence.”

Buck’s lawyer, John Schneider, argued Buck deserved a lesser sentence in part because Buck was allowing credit to people who had run out of SNAP benefits for the month.

They would pay back interest the next month, according to the pre-sentence memorandum.

“His intent in these transactions was not to be in violation of the federal law, but rather assist his patrons in being able to obtain necessary groceries and items that could lawfully be purchased with SNAP benefits,” Schneider said.

Callahan argued in a response that rationale was “outrageous.”

“Charging low-income SNAP recipients 50 percent of their benefits for a transaction is not only illegal, but is outrageous that the defendant suggests that this behavior somehow negates his criminal responsibility,” Callahan wrote. “It actually suggests that the defendant profited handsomely from his crimes on the backs of the poor and the government.”

Buck was indicted Dec. 17 on five counts for illegally redeeming about $864,000 worth of SNAP benefits at B&H Convenience store and the Double Up store in Cape Girardeau between 2010 and 2014, according to the indictment.

In 2013, B&H redeemed about $443,000 in SNAP benefits, according to court documents. Buck, co-owner of B&H, would exchange unauthorized items such as cigarettes and cash for SNAP benefits, according to court documents. The cash exchanged was about half what the benefits were worth in each count, according to court documents

An unnamed confidential informant made illegal SNAP purchases, exchanging $4,065 in SNAP benefits for $1,910 in cash and tobacco products at B&H, according to court documents. Six of those purchases were made with Buck himself, according to court documents.

Office of the Inspector General-Investigations special agent Susan Hytinen received a search warrant March 14, 2014, for B&H convenience store, 1021 Bloomfield Road, and searched the Double Up at 432 Morgan Oak St. Investigators obtained information for Buck’s accounts at Bank of America and First State Community Bank.

Items recovered at the Double Up included business documents, EBT receipts, Buck’s cellphone, a video recorder, laptop computer and iPad.

bkleine@semissourian.com

(573) 388-3644

Pertinent address: 599 Independence St., Cape Girardeau, MO