Two-Year Prison Term for Multistate Fraud Scheme
PORTLAND, Ore. (KOIN) — A 29-year-old Italian man unlawfully residing in Oregon has been sentenced to federal prison for his role in a widespread scheme that stole millions of dollars in Supplemental Nutrition Assistance Program (SNAP) benefits, authorities announced Friday.
According to the U.S. Attorney’s Office for the District of Oregon, Giovanni Spirea was sentenced to 24 months in federal prison, followed by three years of supervised release, and ordered to pay $61,874.32 in restitution.
Spirea’s conviction stems from an elaborate criminal operation that targeted low-income families relying on food assistance, siphoning off funds meant to help them put meals on the table.
Also Read
Skimming Devices and Stolen Data
Federal investigators found that Spirea and a group of co-conspirators used electronic skimming devices to steal the account information of SNAP recipients. These devices were discreetly installed on card readers at grocery stores across Oregon, Washington, and California, allowing the conspirators to capture card data and PIN numbers from unsuspecting users.
Once the information was stolen, the group transferred the data onto counterfeit Electronic Benefit Transfer (EBT) cards, which they used to purchase large quantities of high-value items. According to prosecutors, these purchases included infant formula, energy drinks, and other resellable products.
Millions in Goods Sold on the Black Market
Over the course of the scheme, the conspirators acquired more than 120,000 pounds of goods, which they stored in residences and rented storage units throughout the Pacific Northwest. The products were then shipped to California using private vehicles or commercial freight carriers, where they were sold on the black market for profit.
Authorities estimate that the criminal network sold more than $2.4 million worth of goods, depriving families in need of essential food benefits and defrauding the federal government in the process.
“This was not just theft — it was exploitation of the most vulnerable,” said Scott E. Bradford, U.S. Attorney for the District of Oregon. “This sentence should serve as a warning to anyone seeking to profit from programs designed to help struggling families.”
Indictment and Guilty Plea
A Portland grand jury indicted Spirea and 16 other defendants in October 2024 on 16 criminal charges, including conspiracy to defraud the United States and unauthorized use of access devices.
Spirea pleaded guilty to the conspiracy charge in July 2025, acknowledging his role in the multistate operation.
Prosecutors said the group’s activities were extensive, with several members involved in producing and distributing the fraudulent cards. The investigation was led by the U.S. Department of Agriculture Office of Inspector General (USDA-OIG) in coordination with the Portland Police Bureau, Oregon Department of Human Services, and U.S. Marshals Service.
Local and Federal Response
In a statement, Portland Police Bureau Chief Bob Day condemned the theft, emphasizing the harm caused to families who rely on SNAP benefits.
“The theft of benefits intended for families in need is a serious crime,” Day said. “We remain committed to holding accountable those who exploit public resources for personal gain.”
Authorities say the investigation into the broader network remains ongoing, with several co-defendants still awaiting trial or sentencing.
A Message of Deterrence
Federal prosecutors hope Spirea’s sentencing sends a strong message to others who might attempt similar schemes.
“Every dollar stolen from these programs is a dollar taken from a family trying to feed their children,” U.S. Attorney Bradford said. “We will continue to pursue and prosecute anyone who abuses these vital safety nets.”
Spirea will begin serving his two-year prison term immediately, marking another step in the federal government’s ongoing crackdown on benefit fraud and cyber-enabled theft targeting public assistance programs.
