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WADESBORO, NC (WBTV) -
A Wadesboro restaurant agreed to pay thousands of dollars in damages and penalties for using other people's EBT cards to buy restaurant supplies, according to the Attorney General's Office.
The Ladybug Family Restaurant in Wadesboro, and Retha Kendall Lindsey, have agreed to pay $62,000 in damages and civil penalties to resolve allegations of food stamp fraud, the release states.
On October 10, the United States filed a civil complaint against the restaurant and Lindsey, who was employed there, for violation of the United States False Claims Act.
According to the filed complaint, the defendants used other people's Electronic Benefit Transaction ("EBT") cards, formerly known as food stamps, to purchase food and other items for the Ladybug restaurants.
The complaint alleged that from about August 2011 to about June 2012, the defendants and others used EBT cards belonging to other people in at least 49 transactions to make bulk purchases of meat and other items for use at the Ladybug restaurants.
The case was investigated by USDA-OIG. The prosecution was handled by Assistant United States Attorneys Paul B. Taylor and Jonathan H. Ferry of the U.S. Attorney's Office for the Western District of North Carolina.