The FBI is offering up to $150,000 for information leading to the arrest and conviction of a Tacoma grocery store owner accused of turning customers’ SNAP benefits into cash and keeping half of the money for himself.
Manjit Singh Bedi operated Asian Grocery Store, which became authorized to accept Supplemental Nutrition Assistance Program benefits in February 2024. Federal prosecutors say the cash for benefits transactions began the following month and continued through June 2025.
The scheme was straightforward, according to the U.S. Attorney’s Office for the Western District of Washington. Prosecutors say Bedi could charge $200 against a customer’s Electronic Benefit Transfer card, give the customer $100 in cash instead of groceries and keep the other $100. The indictment alleges he pocketed at least $600,000 in SNAP benefits for food that was never sold.
Bedi was indicted on multiple counts of wire fraud and SNAP benefit fraud and pleaded not guilty. The FBI says he was ordered to surrender his passport and remain in Washington, but instead crossed into Canada and fled to India, where authorities believe he is now living.
The Store Was Supposed to Exchange SNAP Benefits for Food
SNAP recipients use EBT cards to purchase eligible food from authorized retailers. Asian Grocery Store received authorization to participate in the program in February 2024, shortly before the transactions described in the indictment began.
Prosecutors say Bedi instead agreed to exchange benefits for cash. The store would process an EBT transaction as though eligible food had been purchased, while the customer received only part of that amount in cash and Bedi kept the rest.
The practice is known as SNAP trafficking. The U.S. Department of Agriculture prohibits retailers from exchanging SNAP benefits for cash. Stores that engage in trafficking can face temporary or permanent disqualification from SNAP, financial penalties and criminal prosecution.
Bedi Was Indicted, Then Authorities Say He Left the Country
Federal prosecutors announced Bedi’s indictment in April 2026 on multiple counts of wire fraud and SNAP benefit fraud. He appeared in federal court in Tacoma and entered a not guilty plea.
The FBI says Bedi was ordered to surrender his passport and remain in Washington state while the federal case proceeded. Authorities say he instead drove across the border into Canada and then fled to India.
A federal arrest warrant was issued on May 21 after Bedi was charged with violating the conditions of his supervision. The FBI currently believes he is residing in India.
The FBI Is Offering Up to $150,000
Bedi is now listed on the FBI’s Most Wanted Fraudsters list. FOX 13 Seattle reported that the bureau is offering a reward of up to $150,000 for information leading to his arrest and conviction.
The FBI describes Bedi as a naturalized U.S. citizen born in India. He is listed as approximately 5 feet 11 inches tall and weighing about 200 pounds.
Anyone with information about his whereabouts can contact the FBI at 1-800-CALL-FBI, submit a tip through the bureau’s website, contact a local FBI office or reach the nearest U.S. embassy or consulate. The underlying wire fraud and SNAP benefit fraud charges remain accusations, and Bedi is presumed innocent unless proven guilty.
Trading SNAP Benefits for Cash Can Put Recipients at Risk Too
The USDA Food and Nutrition Service says SNAP recipients must use their benefits for their intended purpose. Selling benefits for cash is considered recipient fraud and can result in disqualification from the program, criminal charges and prosecution that may lead to fines or prison.
Recipients who are offered cash in exchange for their SNAP benefits should not complete the transaction. USDA specifically identifies stores offering cash for benefits as a form of retailer fraud, even when the store processes the transaction through a legitimate EBT card.
Suspected SNAP or other federal nutrition program fraud can be reported through the USDA Food and Nutrition Service. Reports should include as much useful information as possible, such as the retailer’s name and location, what was offered, when it happened and any receipts, screenshots or other documentation.
USDA allows people reporting suspected nutrition program fraud to remain anonymous. The agency says evidence is helpful but is not required to make a report.