The O’Keefe Media Group on Friday dropped part two of the latest sting, dubbed, “Fraud Is The New Dope.”
Bodegas in New York City were caught on hidden camera selling beer using SNAP and EBT benefits.
Via OMG:
Not only did we expose EBT benefits being used to buy drugs, like ‘kratom’, we also revealed the bodegas across New York City selling us beer with EBT cards.
In Queens, we asked him to run the beer as “food.” He agreed and we walked out with beer purchased using an EBT card.
Federal law is clear: SNAP benefits are for eligible food items only under the Food and Nutrition Act of 2008 and 7 CFR 271.2. Alcohol cannot legally be purchased with SNAP benefits. These NYC retailers who intentionally process alcohol as food are violating federal SNAP regulations, subject to disqualification from SNAP participation, civil penalties under 7 CFR 278.6,New York State Crime S 110, and their USDA Retailer Agreement.
We also uncovered another loophole at a Harlem bodega. After manipulating an EBT transaction, a clerk converted taxpayer-funded benefits into cash. Minutes later, that same cash was used to purchase beer. According to our investigation, this violates federal law 7 C.F.R. § 278.2(a), which prohibits SNAP benefits from being exchanged for cash except as limited change in an eligible transaction.
If taxpayer-funded benefits can be converted into cash and immediately spent on alcohol, how often is this happening without anyone noticing?
When we confronted one of the clerks who had just spoken with us in English, he suddenly claimed he couldn’t understand English at all. This is where your taxpayer dollars are going. Remember, there is money in fraud. There’s no money in exposing the fraud.
WATCH:
FRAUD IS THE NEW DOPE PART 2: NYC Bodegas Caught Undercover Selling Alcohol Using SNAP & EBT Benefits
“Do you have beer?” “Yes.”
“He’s paying with the EBT card?” “Oh, yes.”
“If you put it as food, they don’t know it’s beer.” “Uh-huh.” pic.twitter.com/paBV7Q9Yz4
— James O’Keefe (@JamesOKeefeIII) July 31, 2026
The O’Keefe Media Group on Wednesday released undercover video showing smoke shops and bodegas across New York City processing EBT cards for drugs and alcohol.
NYC clerks were caught swiping the EBT card for illicit substances.
“Store after store attempted to process EBT cards for kratom, a psychoactive substance that is not eligible for purchase with SNAP or EBT benefits. One clerk attempted to process the purchase as “EBT Cash.” Another processed it as “EBT Food”, treating kratom as if it were groceries,” O’Keefe said.
“Federal law 7 CFR 278 and 7 U.S.C 2012 prohibits retailers from accepting SNAP or EBT benefits for non-food items, including drugs, alcohol, and tobacco. According to the investigation, these transactions may violate federal SNAP regulations, New York State regulations, and the USDA SNAP Retailer Agreement,” O’Keefe said.
FRAUD IS THE NEW DOPE PART 1: NYC Clerks Caught Undercover Processing EBT Cards For Drug & Alcohol Purchases As “EBT Cash” & “EBT Food”
“The [EBT] Cash Can Use it. 100%.”
“I did EBT Food.”
“You’re gonna be chilling with the aliens [Getting So High].” pic.twitter.com/RLaeLCBVYb
— James O’Keefe (@JamesOKeefeIII) July 29, 2026
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