Lam’s Seafood Market released a statement on its Facebook page on Friday, denying recent allegations of electronic benefit transfer (EBT) fraud, saying it has retained legal counsel and may file a lawsuit.
“Lam’s Seafood Market stands by its integrity and remains committed to serving our community,” the market said in a statement posted on Facebook. “We take EBT fraud extremely seriously. We have engaged legal counsel who will file suit if necessary.”
The statement added that the market could not comment further on pending legal matters.
The response follows a social media video posted by Nick Shirley that, according to the market’s operations manager, Teizi Mersai, portrayed the business as participating in fraud involving EBT cards used to access benefits through the federal Supplemental Nutrition Assistance Program (SNAP).
In a video response posted to Facebook, Mersai denied the allegations and disputed the original video’s interpretation of a transaction involving spring rolls and canned luncheon meat.
“We just want to make it very clear that Lam’s have never participated in any EBT trafficking or EBT fraud,” Mersai said.
Mersai also outlined the difference between SNAP benefit trafficking and retailer collusion. Benefit trafficking generally involves exchanging SNAP benefits for cash or other unauthorized compensation. Retailer collusion involves a retailer working with a recipient to exchange benefits for cash.
Mersai said retailers must follow restrictions when accepting EBT payments and cannot refuse service based solely on a customer’s appearance or suspected fraudulent intent.
“We cannot deny payment. We cannot deny service or sale of products, even if we suspect there may be EBT fraud involved,” Mersai said in the video. He also said the business has worked with residents, other businesses and community organizations to seek action on drug use, illegal markets and suspected EBT trafficking in the neighborhood. Mersai also credited increased police presence with reducing some activity outside the store but said problems remain.
“We need to work together with all stakeholders to combat these illegal activities,” Mersai said.
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