Johna Pierce   (202) 720-4623
                                    Alicia Bambara (703) 305-2039

USDA SWEEPS CATCH FOOD STAMP VIOLATORS

     WASHINGTON, Jan 31, 1997--In the second major sweep of targeted food
stamp retailers in less than a year, compliance investigators from the U.S.
Department of Agriculture's Food and Consumer Service caught 403 merchants
committing food stamp violations, Agriculture Secretary Dan Glickman announced
today.

     In the multi-State sweep, 119 stores were caught trafficking, or
exchanging food stamps for cash.  He said the stores bought $18,500 worth of
food stamps from investigators for just over $11,550 in cash -- about 62 cents
on the dollar.  The 119 caught trafficking redeemed more than $16 million
worth of food stamps last year.  In all, the 403 stores caught in violations
redeemed more than $38.5 million.

     "Welfare reform has put greater emphasis on the Food Stamp Program as a
primary part of the national nutrition safety net ensuring that we get food to
people who need it," Glickman said.  "And it is essential that food stamp
benefits are used in the way they were intended."

     The three-week sweep, which was dubbed "Operation Five Points," focused
on retailers in Detroit, Jersey City, Los Angeles, Miami, and New Orleans, and
identified Food Stamp Program retailer violations ranging from trafficking to
the sale of ineligible items in exchange for food stamps.
     
     "The sweeps uncovered a range of violations, some serious enough that we
will pursue criminal cases against the retailers," Glickman said.  "Others
will be warned, fined, or will face possible permanent disqualification from
the Food Stamp Program."

     "These are tough penalties, and they should be," Glickman said.  "We are
sending a clear message that we will not tolerate fraud or abuse in the Food
Stamp Program."

     "All fraud and abuse in the Food Stamp Program is very serious because
it takes food away from hungry families," said Under Secretary for Food,
Nutrition, and Consumer Services Ellen Haas.

     "I want to emphasize that most of the 192,000 retailers nationwide who
participate in the Food Stamp Program are honest and abide by the program
rules," Haas said. "The percentage of stores caught in serious violations
during the Five Points sweep is much higher than we would get in a random
sample of all authorized retailers nationwide, because we targeted our
investigations carefully."

     While USDA's Food and Consumer Service and Office of the Inspector
General, along with authorities from other federal agencies and from state and
local police, continuously investigate stores committing fraud, the two recent
sweeps of retailers have been a special effort designed to focus attention on
particular areas of the country.  The cities where the sweeps took place were
chosen for technical and logistical reasons, and not because they had
especially high rates of program fraud or abuse.  The more than 900 stores in
these five metropolitan areas were targeted for investigation because they fit
a profile that indicated they might be prone to program violations.

     As a by-product of Operation Five Points, Food and Consumer Service
investigators donated to charitable organizations more than six tons of food
and non-food items purchased with food stamps during the investigation.

     Of the 403 stores caught in violations in the Operation Five Points
sweep, 79 were in Detroit; 121 were in the Jersey City metropolitan area; 76
were in Los Angeles; 83 were in Miami; and 44 were in the New Orleans
metropolitan area.  Those retailers caught in the sweep and facing only
administrative sanctions have been sent letters notifying them of the charges
against them.  These retailers have the right to request a review of their
cases and penalties. Lists of stores identified in each area are available
from the following Food and Consumer Service regional offices:

     Detroit: Midwest Regional Office, Chicago, 312-353-1044

     Miami: Southeast Regional Office, Atlanta, 404-730-2588

     Jersey City: Mid-Atlantic Regional Office, New Jersey, 609-259-5091

     New Orleans: Southwest Regional Office, Dallas, 214-290-9802

     Los Angeles: Western Regional Office, San Francisco, 415-705-1311

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