A New York-based ‘fraud factory’ stole $7 million in federal food benefits from unsuspecting victims, and used the looted funds to buy luxury cars and send cash payments to pals in Yemen, prosecutors claim.
Eight members of the high-tech theft ring were indicted Thursday for the 18-month scheme, in which they used electronic dupers to siphon funds from their targets’ SNAP and EBT nutrition benefit cards.
The plot, run by 34-year-old alleged ringleader Belal Hauter, operated out of hotels and the backroom of a Yonkers deli, according to prosecutors.
Hauter is believed by prosecution to have directed co-conspirators to open merchant processing accounts in the name of existing and fictitious bodegas, delis and grocery stores.
After opening the bogus accounts, card skimming machines captured and cloned EBT users’ PINs. By tracking when SNAP benefits would be loaded onto the compromised cards.
Hauter and his co-conspirators were then able to “almost immediately” swipe the clones and drain the accounts.
Proceeds from the fraudulent EBT transactions were funneled into conspirator-controlled bank accounts. Prosecutors said that of the approximately ten investigated accounts, all but two were in Hauter’s name.
As alleged in court documents, stolen funds bought numerous luxury vehicles including a ritzy BMW. One member of the conspiracy went as far as to send a photograph of a newly purchased vehicle to Hauter alongside a message saying he bought it “thanks to (him)”, prosecutors said.
Thousands of dollars were also sent to Yemen, where Hauter has ties.
Additional photographic evidence shows numerous Point Of Sale systems with strings of receipts and dozens of cloned EBT cards.
Abdulla Aezah, 35, and Gregory Fabiani, 46, who appeared in court alongside Hauter Thursday were believed to have helped open and provide technical support to the scam.
Hauter is also believed to have had relatives involved in the scheme that have since fled the county.
Despite arguments from Hauter’s defense attorney that his cooperation with law enforcement and the fact he has not yet joined fleeing family members is “proof positive” of his intention to stay in the country, Judge Melissa T. Lewis ordered over a $1 million bail.
All three defendants pleaded not guilty to multiple charges including grand larceny, conspiracy and identity theft. Aezah and Fabiani were also deemed as flight risks with strong international ties.
The trio — due back in court Dec. 10 — surrendered U.S. passports to law enforcement.
Several defendant family members could be heard crying in court where Fabiani’s girlfriend left the room whimpering and Hauter’s wife could be seen red-faced and teary-eyed.
Despite the conspiracy charge period spanning from April 2023 to September 2025, prosecutors believe the operation could have lasted longer and be traced to upwards of $13 million in stolen benefits.
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