Eight people have been indicted in a sprawling federal benefits theft scheme that prosecutors say drained $7 million from SNAP and EBT accounts.
Belal Hauter, 34, the alleged ringleader, was arraigned Thursday in a case that stretched across hotels and a Yonkers deli backroom over 18 months. He and seven co-conspirators face charges including grand larceny, conspiracy and identity theft for a plot that cloned nutrition benefit cards and funneled stolen funds into luxury vehicles and overseas cash transfers.
Prosecutors contend Hauter directed associates to open merchant processing accounts under both real and fictitious bodegas, delis and grocery stores. Card skimming machines then captured victims’ PINs, and the ring tracked benefit loading schedules to strike fast. They were able to drain accounts “almost immediately” after funds appeared, according to court documents.
The fraudulent transactions poured into conspirator-controlled bank accounts. Of roughly ten accounts investigators examined, all but two were in Hauter’s name, prosecutors said.
The spending was brazen. Stolen proceeds bought multiple luxury vehicles, including a BMW. One conspirator sent Hauter a photograph of a newly purchased car with a message saying he bought it “thanks to (him),” prosecutors told the court.
Thousands more dollars flowed to Yemen, where Hauter maintains ties. Photographic evidence seized in the investigation shows strings of receipts, numerous Point Of Sale systems and dozens of cloned EBT cards.
Abdulla Aezah, 35, and Gregory Fabiani, 46, appeared alongside Hauter at Thursday’s arraignment. Prosecutors believe both men helped open accounts and provided technical support for the operation. All three defendants pleaded not guilty.
Hauter’s defense attorney argued that his client’s cooperation with law enforcement and his decision not to flee like relatives who have since left the country offered “proof positive” of his intention to remain. Judge Melissa T. Lewis was unmoved, setting bail at over $1 million.
Aezah and Fabiani were also deemed flight risks due to strong international connections. All three surrendered their U.S. Passports to law enforcement before leaving court.
The scene inside the courtroom grew emotional as several defendant family members wept openly. Fabiani’s girlfriend left the room whimpering, while Hauter’s wife sat red-faced and teary-eyed during the proceedings.
Prosecutors believe the conspiracy, formally charged from April 2023 through September 2025, may have operated longer and could ultimately be traced to as much as $13 million in stolen benefits. The investigation remains ongoing as authorities work to trace the full scope of the fraud factory’s reach.
The three principal defendants are due back in court Dec. 10.