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, which followed similar OMG reporting in New York City, focused on whether California retailers would offer kratom for sale and attempt to process those purchases through EBT.
At a smoke shop in San Diego, an employee acknowledged restrictions surrounding the sale of kratom while discussing the products with an undercover OMG journalist.
“They banned it for good. So tomorrow is the last day. You have to remove every single piece [of kratom],” the clerk said. “If they got you with this [kratom], it’s a felony. That’s a big-time felony.”
Despite the clerk’s acknowledgment, OMG documented kratom being offered for sale.
California prohibited the sale of kratom products for human consumption in October 2025 under the state’s adulterated-food rules. Within the city of San Diego, kratom sales had already been prohibited for more than a decade.
OMG journalists documented retailers continuing to offer the products, including instances in which clerks retrieved kratom that had been kept out of sight.
Clerks Attempt to Process EBT Transactions
The investigation also examined whether retailers would attempt to process kratom purchases using government-funded EBT benefits.
At one Los Angeles location, an undercover OMG journalist asked a clerk:
“You ran it as groceries, right?”
The clerk nodded yes, appearing to confirm that the attempted transaction had been categorized as an EBT grocery purchase.
At another Los Angeles smoke shop, a clerk asked:
“Can $7 be EBT cash?”
Another employee responded:
“Yeah, I think so. EBT cash.”
Federal SNAP regulations restrict SNAP benefits to eligible food purchases. The encounters documented by OMG raise questions about safeguards intended to prevent taxpayer-funded benefit programs from being used for ineligible products.
Importantly, OMG intentionally used EBT cards the journalists knew would not successfully complete the transactions.
The objective was to document whether retailers would attempt to process the transactions without OMG itself completing the purchases.
OMG’s Continuing EBT Investigation
The California investigation follows previous undercover reporting by O’Keefe Media Group examining the use of government-funded EBT benefits at retailers in New York City.
OMG’s latest reporting expands that investigation to California, documenting both the continued availability of kratom at the locations visited and attempts by clerks to process purchases through EBT.
The investigation raises broader questions about retailer compliance and the safeguards used to protect taxpayer-funded assistance programs from being used for purchases that do not qualify under federal SNAP rules.
WATCH THE FULL UNDERCOVER INVESTIGATION
If you’ve witnessed suspected EBT, SNAP, or food stamp fraud in your community, contact O’Keefe Media Group.
Email: [email protected]
Signal: 914-491-9395
