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James O'Keefe @JamesOKeefeIII - O’Keefe Media Group undercover journalists traveled to smoke shops across Los Angeles and San Diego as part of OMG’s continuing investigation into the use of government-funded EBT benefits to purchase ineligible products.
The investigation followed similar reporting in New York City and focused on whether California retailers would attempt to process kratom purchases through EBT.
California prohibited the sale of kratom products for human consumption in October 2025 under the state’s adulterated-food rules. In San Diego, the sale of kratom within city limits had already been prohibited for more than a decade. Despite those restrictions, OMG journalists documented retailers offering kratom for sale, including clerks retrieving products that had been kept out of sight. The investigation also documented attempts to use EBT benefits for the products. At one location, a clerk nodded yes when asked whether a transaction had been run as “groceries.” At another, clerks discussed processing the purchase as “EBT cash.”
Federal SNAP regulations restrict SNAP benefits to eligible food purchases. The encounters raise questions about the safeguards protecting taxpayer-funded benefit programs from being used for ineligible purchases.
OMG intentionally used EBT cards the journalists knew would not successfully complete the transactions. The objective was to document whether retailers would attempt the transactions without OMG completing the purchases itself.
If you’ve witnessed suspected EBT, SNAP, or food stamp fraud in your community, contact O’Keefe Media Group at TIPS@OKEEFEMEDIAGROUP.COM or Signal: 914-491-9395
Parent Post:
James O'Keefe @JamesOKeefeIII - Video: EXPOSED: O’Keefe Uncovers California Smoke Shops Selling Banned Kratom, With Clerks Attempting to Process Purchases Using Government-Funded EBT Benefits as “Groceries” or EBT Cash
The clerk in San Diego stated, “They banned it for good. So tomorrow is the last day. You have to remove every single piece [of kratom]. If they got you with this [kratom], it’s a felony. That’s a big-time felony.”
At a Los Angeles store, an undercover journalist asked, “You ran it as groceries right?” The clerk nodded yes, confirming the attempted purchase was categorized as an EBT grocery transaction.
At another LA smoke shop, a clerk asked, “Can $7 be EBT cash?” before another clerk responded, “Yeah, I think so. EBT cash.”
https://x.com/JamesOKeefeIII/status/2101058965648068671

James O'Keefe @JamesOKeefeIII - Video: EXPOSED: O’Keefe Uncovers California Smoke Shops Selling Banned Kratom, With Clerks Attempting to Process Purchases Using Government-Funded EBT Benefits as “Groceries” or EBT Cash
The clerk in San Diego stated, “They banned it for good. So tomorrow is the last day. You have to remove every single piece [of kratom]. If they got you with this [kratom], it’s a felony. That’s a big-time felony.”
At a Los Angeles store, an undercover journalist asked, “You ran it as groceries right?” The clerk nodded yes, confirming the attempted purchase was categorized as an EBT grocery transaction.