Federal prosecutors say the alleged operation was carried out through Bedi’s business, the Asian Grocery Store in Tacoma, Washington.
The store was authorized to accept SNAP benefits through Electronic Benefit Transfer (EBT) cards in February 2024. According to federal investigators, that authorization was allegedly used as part of a scheme that continued from March 2024 through June 2025.
Rather than exchanging SNAP benefits for qualifying food products, investigators allege Bedi used the EBT system to convert government benefits into cash.
The alleged arrangement was relatively straightforward.
According to prosecutors, SNAP recipients would provide Bedi with their EBT cards and personal identification numbers. Bedi would then allegedly run transactions through the grocery store, causing the SNAP program to reimburse the business as though legitimate groceries had been purchased.
The recipients, however, allegedly received cash instead.
In one example outlined by prosecutors, a person could hand over an EBT card containing $200 in benefits and receive $100 in cash. Bedi would allegedly keep the remaining $100.
The federal indictment describes the alleged scheme in stark terms.
“Beginning on March 1, 2024, and continuing through on or about June 12, 2025, in Pierce County, within the Western District of Washington, Manjit Bedi, together with others known and unknown, devised and intended to devise a scheme and artifice to defraud the United States Department of Agriculture, and obtain money and property by means of materially false and fraudulent pretenses, representations, promises, and the concealment of material facts,” the indictment reads in part.
Prosecutors further alleged that Bedi and SNAP recipients entered into agreements under which the SNAP recipient agreed to provide Bedi with his or her EBT card and PIN. BEDI agreed to pay the SNAP recipient a portion of the value of the benefits remaining on the EBT card.
For example, a recipient might provide BEDI with an EBT card loaded with $200 in benefits in return for a $100 cash payment from Bedi to the recipient.
The indictment states that the fraudulent transactions allegedly made it appear as though the SNAP program was paying Bedi for groceries when no qualifying groceries were actually provided.
It continued, “The transactions caused the SNAP program to pay Bedi for the supposed groceries. For each such fraudulent occurrence, Bedi would split the proceeds with the SNAP recipient.” Additionally, “Instead of providing the SNAP recipient with groceries as represented to FNS, Bedi gave the cardholder an agreed-upon amount of cash. For each occurrence, Bedi typically profited at a rate of 50 cents on each dollar of SNAP benefits redeemed.”
Investigators also say the transactions involved interstate electronic communications, a factor that prosecutors cited in support of the wire fraud allegations.
The indictment noted that each transaction “caused and relied upon an interstate wire signal that authorized electronic payments from the SNAP program to the Asian Grocery Store’s bank account,” supporting the wire fraud counts.
Bedi was indicted in April 2026 on multiple counts involving wire fraud and SNAP benefits fraud.
The charges carry serious potential consequences. Each count carries a maximum possible sentence of 20 years in federal prison and a fine of up to $250,000.
But despite the seriousness of the allegations, Bedi was initially allowed to remain out of custody while the case proceeded.
He was permitted to appear in court without being arrested, but the court imposed conditions. Among them, Bedi was ordered to surrender his passport and remain within Washington state.
Federal authorities allege that Bedi did not follow those restrictions.
According to investigators, he allegedly drove across the U.S.-Canada border before eventually traveling to India.
That prompted the issuance of a federal arrest warrant on May 21, 2026, in the U.S. District Court for the Western District of Washington in Tacoma for alleged violations of his conditions of supervision.
The FBI subsequently offered a reward of up to $150,000 for information that could lead to Bedi’s arrest and conviction.
The investigation involved multiple government agencies, including the FBI, the U.S. Department of Agriculture’s Office of Inspector General and the Washington State Department of Social and Health Services.
The U.S. Attorney’s Office for the Western District of Washington is prosecuting the federal case.
Bedi’s eventual arrest in India stemmed from a separate investigation by Indian authorities. Punjab Police reportedly arrested him in connection with allegations under the Punjab Travel Professionals’ Regulation Act and provisions of the Bharatiya Nyaya Sanhita involving cheating and criminal breach of trust.
His capture marked another high-profile arrest involving a suspect sought by American authorities for alleged financial crimes.
FBI Director Kash Patel praised the results of the bureau’s initiative targeting wanted fraud suspects.
“Five Most Wanted Fraudsters captured in just three months is a historic success for this initiative. The days of taking advantage of American taxpayers without consequence are over,” said FBI Director Kash Patel.
The allegations against Bedi remain allegations unless and until proven in court. His arrest in India, however, could now clear a major hurdle for U.S. authorities seeking to bring him back to Washington to face the federal charges.
The case also highlights the aggressive steps federal investigators are taking against alleged schemes involving taxpayer-funded benefit programs.
For millions of Americans who rely on SNAP for assistance with food purchases, the program is intended to provide help with basic necessities—not serve as a vehicle for converting government benefits into cash.
Federal prosecutors now have the task of bringing Bedi before a U.S. court, where the allegations against him will be tested through the legal process.
