Shop Owner Pleads Not Guilty in $670k Food Stamp Scheme

A Riverhead resident and downtown shop owner pleaded not guilty Thursday after authorities alleged in a 60-count indictment that he orchestrated a scheme involving his wife and two dozen food stamp holders, robbing the federal government of over $670,000 in the process.

Ravinder Parkash stood silent in State Supreme Court on Thursday in front of Judge Steven Hudson, who ordered Parkash to be held on $250,000 cash bail or $500,000 bond. But authorities said that beyond the silent front of his East Main Street Snack Shop and Gulf Station, a criminal was operating, checking out big money for himself.

He is charged with leading a scheme which involved making phantom Supplemental Nutrition Assistance Program purchases, and giving some of the cash back to two dozen locals – beneficiaries of the food stamp program – who then pocketed a share of the cash while Parkash put the difference into a bank account he set up.

"Plain and simple, these crimes are a betrayal of the trust of the people of New York and those who rely on this important government program to feed their families,” New York Attorney General Eric Schneiderman said. “The conduct alleged in this case became even more heinous when we found that the defendants stole emergency benefits for victims of Hurricane Sandy, and used it for their own selfish purposes."

Schneiderman filed a civil suit against Parkash, 59, his 58-year-old wife, Prabha Rani, as well as their corporation, Shivani Enterprises, Inc., which is also criminally charged. The state seeks restitution in an amount of nearly $675,000 and damages in an amount of $2.02 million, for violations of the New York False Claims Act.

Parkash faces 15 years in prison if charged criminally, and Rani, seven.

It was not immediately clear if Parkash had the funds to make bail; authorities froze his assets in New York State, however prosecutors – who called for $1 million bail – noted that he had "significant" holdings outside state lines. Defense attorney Scott Zerner of Queens stated that Parkash – who was charged with selling alcohol to a minor last year – has showed up for every one of his court dates so far, and has showed no indication of fleeing.

Schneiderman's office said said that without regard to need, federal SNAP benefits were upped by 50 percent to individuals in affected areas of Hurricane Sandy after last fall's storm. Authorities allege that in 2012 alone, Parkash and Rani rang up over $329,000 in SNAP benefits as benefits rose. This compares with other local stores where the totals were no higher than $6,439 and in one case just $371, they said.

In addition to the married couple, the SNAP cardholders themselves stand charged with felony charges as well: grand larceny, and misuse of food stamps. 

They are Carla Anderson, 38, of Riverhead; Richard Andrychowski, 23, of Shirley; Jill Arrington, 38, of Calverton; Henry Brown, 55, of Bellport; Anthony Calloway, 36, of Riverhead; Kristy Carpenter 44, of Medford; Lakisha Darden,36, of Aquebogue; Dawn Davis,33, of Mastic Beach; Eric Dunsing, 37, of Riverhead; Kerri Ferrante, 27, of Riverhead; Shavon Goode, 30, of Riverhead; Josie Harris, 47, of Riverhead; Sirena Jackson, 35, of Riverhead; Lamont James, 40, of Riverhead; Jessica Kennedy, 27, of Riverhead; Cynthia Massenburg, 48, of Riverhead; Tameka Miles, 31, of Riverhead; Alesha Minter, 31, of Shirley; Stephanie Nash, 28, of Riverhead; Troy Smolen, 46, of Riverhead; and Sirena Trent, 38, of Riverhead.

Also indicted were Brenda Richardson, 50, of Riverhead; Eric Brown Jr., 24, of Riverhead; and Anthony Durham Jr., 26, of Riverhead. They have not yet been caught, authorities said.