PORTLAND, Ore. (KOIN) — A 29-year-old Italian man living unlawfully in Oregon has been sentenced to two years in federal prison after authorities uncovered a large-scale scheme to steal millions of dollars in Supplemental Nutrition Assistance Program (SNAP) benefits, federal officials announced this week.
According to the U.S. Attorney’s Office for the District of Oregon, Giovanni Spirea played a central role in a criminal operation that used electronic skimming devices to capture food assistance card information from unsuspecting recipients. The stolen data was later transferred onto counterfeit Electronic Benefit Transfer (EBT) cards, which conspirators used to purchase and resell high-value goods across multiple states.
Multi-State SNAP Fraud Scheme
Investigators say Spirea was part of a 17-member criminal network responsible for defrauding families across Oregon, Washington, and California. The group reportedly stole millions of dollars from federal food assistance programs between 2023 and 2024.
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Using the cloned EBT cards, conspirators purchased “large quantities” of infant formula, energy drinks, and other consumer goods from grocery stores throughout the Pacific Northwest. According to prosecutors, the group acquired over 120,000 pounds of products, storing them in apartments, homes, and storage units before shipping them to California for resale.
Authorities estimate that the stolen goods were sold for more than $2.4 million on the black market, effectively converting taxpayer-funded assistance into personal profit.
Federal Sentencing and Restitution
On Wednesday, a federal judge in Portland sentenced Spirea to 24 months in prison, followed by three years of supervised release. He was also ordered to pay $61,874.32 in restitution to the U.S. government for his role in the conspiracy.
The U.S. Attorney’s Office noted that Spirea pleaded guilty in July 2025 to conspiracy to defraud the United States, one of several charges filed against him in a 16-count federal indictment issued in October 2024. The indictment also named 16 other defendants, many of whom face similar charges tied to the same organized fraud ring.
Statement from Federal and Local Authorities
U.S. Attorney Scott E. Bradford condemned the scheme as a deliberate effort to exploit programs meant to support vulnerable families.
“The theft of benefits intended for families in need is a serious crime,” Bradford said. “This sentencing should deter perpetrators from defrauding American families and the federal government for personal gain.”
Portland Police Bureau Chief Bob Day echoed that sentiment, emphasizing the importance of protecting social safety net programs from abuse.
“We remain committed to holding accountable those who exploit public resources for personal profit,” Day said. “This case reflects how collaboration between federal and local law enforcement ensures these crimes don’t go unchecked.”
How the Scheme Worked
Federal investigators say Spirea and his co-conspirators installed card-skimming devices at grocery stores and point-of-sale terminals used by SNAP recipients. These devices secretly recorded card information and personal identification numbers (PINs).
Once the data was captured, the group encoded it onto blank magnetic cards, effectively creating counterfeit EBT cards that appeared legitimate. The fraudulent cards were then used to buy bulk items easily resold for cash — including baby formula, protein supplements, and energy drinks — often at small, independent markets.
Authorities say the fraud not only diverted essential resources from struggling families but also caused administrative challenges for grocers and state agencies working to reimburse victims.
Broader Crackdown on SNAP Fraud
Spirea’s case is part of a wider federal crackdown on SNAP benefit theft, which has surged nationwide due to the proliferation of card-skimming technology. Law enforcement agencies across the country have reported a rise in organized criminal networks exploiting electronic benefits systems.
Officials encouraged SNAP participants to regularly change their PIN numbers and report suspicious or unauthorized transactions immediately to prevent similar theft.
A Cautionary Outcome
While Spirea’s sentencing marks a significant step in dismantling the Pacific Northwest fraud ring, federal investigators said several co-defendants are still awaiting trial.
Authorities reaffirmed that the case serves as a warning to those seeking to exploit public welfare programs.
“These benefits exist to feed families, not to fund criminal enterprises,” Bradford said. “Anyone who thinks they can profit from stealing from the public should know they will face consequences.”
Spirea remains in federal custody and will be transferred to a Bureau of Prisons facility to serve his two-year sentence, after which he is expected to face deportation proceedings for his unlawful residency status.
