Office of the Attorney General: BIRMINGHAM GROCER, EMPLOYEE CHARGED WITH WELFARE FRAUD

FROM THE OFFICE OF THE ATTORNEY GENERAL

August 08, 2008

For More Information, Contact:
Joy Patterson 334.242.7491
Suzanne Webb 334.242.7351


(MONTGOMERY)—Attorney General Troy King announced that a Birmingham grocery store owner and an employee have been arrested for welfare fraud. Kerry Randall Davis, 47, of Gardendale, is the owner of Modern Market at 7632 Fifth Avenue North. Erskine Leon Smith Jr., 36, of Birmingham, is an employee of Modern Market. Both were arrested yesterday by the Jefferson County Sheriff's Office and taken to the Jefferson County Jail.

Attorney General King's Office presented evidence to a Jefferson County grand jury, resulting in the indictments of Davis and Smith on May 23, 2008.

Specifically, the indictment charges Davis, the store owner, with:

• one count of third-degree theft of $86 on January 31, 2007, from the State Department of Human Resources (DHR), through electronic benefit transfer cards (EBT), which are used for food stamp benefits; and

• one count of fraudulent use of a credit or debit card, on January 31, 2007, by allowing an individual to use an EBT card to obtain items such as beer, cigarettes, and cash, with the knowledge that such use was prohibited by the State Department of Human Resources or the U.S. Department of Agriculture which are the issuers of EBT cards.

The indictment charges Smith, the store employee, with a total of 12 counts:

• Two counts of second-degree theft for two transactions totaling $1,225, in February and April of 2007, from the State Department of Human Resources (DHR), through electronic benefit transfer cards, which are used for food stamp benefits;

• Four counts of third-degree theft for four transactions totaling $901 between January and July of 2007, from the State Department of Human Resources (DHR), through electronic benefit transfer cards, which are used for food stamp benefits; and

• Six counts of fraudulent use of a credit or debit card, between January and July of 2007, by allowing individuals to use EBT cards to obtain items such as beer, cigarettes, and cash, with the knowledge that such uses were prohibited by the State Department of Human Resources or the U.S. Department of Agriculture which are the issuers of EBT cards.

"When people are accused of stealing welfare funds, the charge is that they have committed a crime against the State, the taxpaying public, and those who are truly deserving of welfare benefits," said Attorney General King. "I take seriously my responsibility as Attorney General to protect public funds on behalf of the people of Alabama and pledge to investigate allegations and prosecute those who are charged with breaking the law by abusing the welfare system."

The charges resulted from a joint federal-state investigation by the Attorney General's Office and the Office of Inspector General of the U.S. Department of Agriculture's Food and Nutrition Service. No further information about the investigation or about the defendants' alleged crimes other than that stated in the indictment may be released at this time.

If convicted, the defendants face maximum penalties of one to ten years for each charge of second-degree theft, a class C felony; up to one year for each charge of third-degree theft, a class A misdemeanor; and one to ten years imprisonment for each charge of fraudulent use of a credit or debit card, which is a class C felony.

*An indictment is merely an accusation. The defendants are presumed innocent unless and until proven guilty.