<p><b data-olk-copy-source="MessageBody">SAN FRANCISCO –</b> San Francisco District Attorney Brooke Jenkins announced significant criminal charges against eleven defendants in three separate criminal cases involving large-scale welfare and benefits fraud. The total loss amount across all three cases is alleged to be in excess of $4 million.</p>
<p>“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,” said <strong>District Attorney Brooke Jenkins.</strong>⯠“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.”</p>
<p>According to court documents, the defendants (including owners and employees of five separate business in San Francisco) conspired to fraudulently obtain government benefits from the Supplemental Nutritional Assistance Program (“SNAP,” formerly referred to as “food stamps”). The City of San Francisco, State of California, and federal government provide SNAP benefits to qualified recipients in the form of electronic benefits transfer cards (commonly referred to as “EBT” cards), which can be used to purchase eligible food items. In these criminal cases, the defendants are alleged to have conspired together to obtain EBT cards from program recipients, and then process fraudulent transactions at various retail stores. The defendants would then split the proceeds of these fraudulent transactions 50/50 between themselves and the program recipients.</p>
<p>“SFHSA is committed to delivering essential services that support low-income San Franciscans, struggling families, and older adults,” said <strong>Trent Rhorer, Executive Director of the San Francisco Human Services Agency.</strong> “We appreciate the partnership with the District Attorney’s Office and law enforcement to ensure that the fraudulent actions of these bad actors are put to an end.”</p>
<p>The charged defendants benefited from these fraudulent transactions by unlawfully receiving funds where no sale of goods took place. The program recipients benefited by receiving cash which could be used to purchase items that were otherwise precluded from the SNAP program.</p>
<p>In a typical transaction, a “runner” would go to the mid-Market / Tenderloin area of San Francisco and call out “EBT” until the runner made contact with a person willing to sell their EBT benefits. The “runner” would then take the EBT card to co-conspirators at one of the involved stores, where an employee or owner would process transactions of between $100-$300 as if the EBT card were being used to purchase food items. Instead, the conspirators paid the EBT card holder 50% of the transaction, and kept the remaining 50% for themselves. Although each transaction was typically for a small amount of money, the stores involved in these cases fraudulently obtained hundreds of thousands of dollars in improper benefits. The cases announced today include the following:</p>
<p><em><strong>People v. Guo Quian Lai, Quingyuan He, Xinyi Lei, and Mandy To:</strong></em><br />
The complaint in this matter alleges that these crimes were committed in connection with three San Francisco businesses located in Chinatown: Changyi Trading (1050 Stockton Street), Fu Yuan Food Market (1251 Stockton Street), and Da Chang Yuan (860 Washington Street). The total loss of the welfare fraud scheme is alleged to be in excess of $3 million dollars. In this case, the defendants are charged with conspiring to commit welfare fraud in addition to several other felonies as follows:</p>
<table width="622">
<tbody>
<tr>
<td width="311">Charge</td>
<td width="311">Defendant(s)</td>
</tr>
<tr>
<td width="311">Felony Conspiracy in violation of Penal Code section 182(a)(1)</td>
<td width="311">Guo Quian Lai, Quingyuan He, Xinyi Lei, and Mandy To</td>
</tr>
<tr>
<td width="311">Felony Misappropriation of Public Moneys in violation of Penal Code section 424(a)(1)</td>
<td width="311">Guo Quian Lai, Quingyuan He, Xinyi Lei</td>
</tr>
<tr>
<td width="311">Felony Unauthorized Participation in Federal Supplemental Nutrition Assistance Program in violation of Welfare and Institutions Code section 10980(g)</td>
<td width="311">Guo Quian Lai, Quingyuan He, Xinyi Lei, and Mandy To</td>
</tr>
<tr>
<td width="311">Felony Grand Theft</td>
<td width="311">Xinyi Lei, Guo Quian Lai, Quingyuan He, Mandy To</td>
</tr>
</tbody>
</table>
<p><em><strong>People v. Hoang Le, Runcheng He, and Yulian Luo:</strong></em><br />
The complaint in this matter alleges that these crimes were committed in connection with H+L Market, a business located at 669 Geary Street in the Tenderloin. The complaint further alleges that the total loss amount is in excess of $500,000. In this case, the defendants are charged with conspiring to commit welfare fraud in addition to several other felonies as follows:</p>
<table width="622">
<tbody>
<tr>
<td width="311">Charge</td>
<td width="311">Defendant(s)</td>
</tr>
<tr>
<td width="311">Felony Conspiracy in violation of Penal Code section 182(a)(1)</td>
<td width="311">Hoang Le, Runcheng He, and Yulian Lu</td>
</tr>
<tr>
<td width="311">Felony Misappropriation of Public Moneys in violation of Penal Code section 424(a)(1)</td>
<td width="311">Runcheng He, and Yulian Lu</td>
</tr>
<tr>
<td width="311">Felony Unauthorized Participation in Federal Supplemental Nutrition Assistance Program in violation of Welfare and Institutions Code section 10980(g)</td>
<td width="311">Hoang Le, Runcheng He, and Yulian Lu</td>
</tr>
<tr>
<td width="311">Felony Grand Theft</td>
<td width="311">Runcheng He, Hoang Le</td>
</tr>
</tbody>
</table>
<p><em><strong>People v. Dung Ngoc Huyhn, Kuo Hon Wong, Conhi Truong, and Hau Dinh Ho:</strong></em><br />
The complaint in this matter alleges that these crimes were committed in connection with Clement Dung Market, a business located at 645 Clement Street in the Richmond District. The complaint further alleges that the total loss amount is in excess of $500,000. In this case, the defendants are charged with conspiring to commit welfare fraud in addition to several other felonies as follows:</p>
<table width="622">
<tbody>
<tr>
<td width="311">Charge</td>
<td width="311">Defendant(s)</td>
</tr>
<tr>
<td width="311">Felony Conspiracy in violation of Penal Code section 182(a)(1)</td>
<td width="311">Dung Ngoc Huyhn, Kuo Hon Wong, Conhi Truong, and Hau Dinh Ho</td>
</tr>
<tr>
<td width="311">Felony Misappropriation of Public Moneys in violation of Penal Code section 424(a)(1)</td>
<td width="311">Dung Ngoc Huyhn and Kuo Hon Wong</td>
</tr>
<tr>
<td width="311">Felony Unauthorized Participation in Federal Supplemental Nutrition Assistance Program in violation of Welfare and Institutions Code section 10980(g)</td>
<td width="311">Dung Ngoc Huyhn, Kuo Hon Wong, Conhi Truong, and Hau Dinh Ho</td>
</tr>
<tr>
<td width="311">Felony Grand Theft</td>
<td width="311">Dung Ngoc Huyhn, Kuo Hon Wong, Conhi Truong, Hau Dinh Ho</td>
</tr>
</tbody>
</table>
<p>Although charges have been filed, this remains an active investigation. To make a report that someone may be receiving public benefits to which they are not entitled to, contact SFHSA’s Welfare Fraud Hotline at (415) 557-5771.</p>
<p><strong>Court Numbers</strong>:</p>
<p>25500128 (Quingyuan He)</p>
<p>25500129 (Guo Lai)</p>
<p>25500130 (Xinyi Lei)</p>
<p>25500131 (Mandy To)</p>
<p>25004099 (Yulian Luo)</p>
<p>25500119 (Hoang Le)</p>
<p>25500124 (Dung Huynh)</p>
<p>25500118 (Conhi Truong)</p>
<p>25500123 (Hao Do)</p>
<p>25500120 (Kuo Hon Wong)</p>
<p>25500117 (Runcheng He)</p>

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