Rochester nail salon owner charged with SNAP benefit fraud

ROCHESTER, N.Y. (WHAM) - A Rochester nail salon owner was arrested and charged with accepting SNAP benefits when his business was not authorized to do so.

Hang Lam, 46, was arrested and charged with the unauthorized use, transfer, acquisition, and possession of USDA food stamp benefits.

Lam is accused of allowing multiple people to pay for non-food items using a SNAP benefits card from April 19 through October 1, 2018 at his business, Young’s Nails, on North Goodman Street near East Main Street.

Young’s Nails does not sell food and is not authorized to accept SNAP benefits.

Undercover federal agents conducted five undercover purchases at Young’s Nails using a SNAP EBT card. Some of the purchases were for nail services such as manicures and pedicures, and non-nail service items such as cigarettes, jewelry, and cash. Lam allegedly charged twice the original cost when a SNAP EBT card was used. After a purchase was made, Lam used three SNAP benefit-approved stores to process the undercover transactions: the Tanhong Du Supermarket on N. Clinton Avenue in Rochester, Ocean Garden Oriental Foods Inc. on S. Clinton Avenue in Rochester, and the Asia Food Market on Brighton-Henrietta Town Line Road.

A search warrant was executed last November at Young’s Nails, resulting in the seizure of SNAP EBT cards, and dozens of handwritten notes containing with PINs and various cash amounts. Eight people whose names were linked to those notes were interviewed and reported exchanging SNAP benefits for cash and nail services.

At least $26,000 dollars in fraudulent SNAP transactions involving Lam have been identified.

Lam appeared in court and was released on conditions.

If convicted, Lam faces up to 20 years in prison and a $250,000 fine.