UNDERCOVER FRAUD BOMBSHELL: Our Taxpayer Dollars Used to Buy Drugs and Alcohol — Fraudsters Threaten Investigators With Death
By Pamela Geller - on July 30, 2026
Our tax dollars are funding welfare recipients, including illegal aliens, to buy drugs and alcohol.
So many more people need to go to prison for fraud.
The system is irretrievably broken.
An undercover investigation found NYC smoke shops and bodegas allegedly processing taxpayer-funded EBT benefits for kratom, a psychoactive substance ineligible for SNAP purchases. Investigators also uncovered a suspected cloned payment terminal used to conceal transactions—and were threatened with violence when they confronted those involved.
James O’Keefe’s O’Keefe Media Group released undercover footage from NYC smoke shops and bodegas showing clerks processing EBT cards for kratom purchases by routing them as “EBT Cash” or “EBT Food.”
SNAP benefits on EBT cards are restricted by federal rules to food items only and prohibit alcohol, drugs, tobacco, or supplements like kratom, while separate EBT cash assistance balances allow broader spending.
The video documents a hotline confirmation of restrictions, evidence of possible cloned payment terminals for transaction laundering, store confrontations, and promotes tips for exposing EBT fraud.
NYC Clerks Caught Undercover Processing EBT Cards For Drug & Alcohol Purchases As “EBT Cash” & “EBT Food”
https://gellerreport.com/2026/07/undercover-fraud-bombshell-our-taxpayer-dollars-used-to-buy-drugs-and-alcohol-fraudsters-threaten-investigators-with-death.html/