Three food markets in Chinatown, one in the Tenderloin, and another the Richmond District are accused of handing people cash for allowing the stores to ring up bogus EBT purchases to the tune of $4 million.

Oh, SNAP! The Supplemental Nutritional Assistance Program (SNAP), formerly known as food stamps, is obviously an incredibly important lifeline for many struggling San Franciscans and families. But some people who receive that assistance might wish they could instead just get cash to buy, you know, other things. Can you imagine that some unscrupulous players might cruise the Tenderloin, and offer people only half the value of their electronic benefits transfer (EBT) cards in cash, in exchange for the EBT cards?  

According to a new array of just-announced charges from SF District Attorney Brooke Jenkins’s office, that has allegedly been happening.

On Thursday afternoon, the DA’s office charged 11 people with welfare benefits fraud, in three separate cases that involved five food markets. The investigation apparently also involved a couple of federal agencies, and the SF Human Services Agency (SFHSA) that administers those benefits.

“I would like to thank the US Department of Agriculture, Office of the Inspector General, and the San Francisco Human Services Agency for their hard work and collaboration in this case,” Jenkins said in a press release. “My office is committed to ensuring the integrity of public benefits: that they remain in the hands of recipients and are used for their intended purpose of providing food to needy community members.”

The alleged scam would go as such: people affiliated with the food markets would employ “runners” who would simply head down to the Tenderloin or mid-Market area and shout “EBT!” to find people willing to trade their EBT card benefits for cash. Once someone agreed, the runner would take that person to a food market, run up the whole remaining value of the card, and the SNAP recipient would get half of that value in cash. (Only half!)

No actual food ever changed hands in these alleged transactions. And the total accused fraud in these cases eventually amounted to $4 million.

The stores alleged to have participated in this scheme are listed below, three of them in Chinatown, one in the Tenderloin, and another the Richmond District.

  • Changyi Trading (1050 Stockton Street)
  • Fu Yuan Food Market (1251 Stockton Street)
  • Da Chang Yuan (860 Washington Street)
  • H+L Market (669 Geary Street)
  • Clement Dung Market (645 Clement Street)

While charges have been filed, this is an ongoing investigation. If you’re aware of anyone engaging in EBT fraud, you’re asked to contact SFHSA’s Welfare Fraud Hotline at (415) 557-5771.

Related: NorCal Woman Has Allegedly Been Collecting Unemployment Benefits In Dianne Feinstein's Name [SFist]

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