This is yet another example of how poorly managed this system truly is. I'm not the least bit surprised at this loophole. I'll bet if you really dug into things you'd find loopholes that would really shock you. I grew up and worked around this stuff and know precisely how the game is played.
That's the tip of the iceberg with foodstamps. You wouldn't believe what an incredible bartering item they are on the street. They are sold to buy alcohol, drugs, and often traded for sex. This is an unbelievably abused system. Even when they're used legitimately they are often used to buy low quality junk food that doesn't serve their purpose. There are many, if not most, who use them as intended but abuse at many levels is rampant. The gov't looks the other way at the abuse and lack of regulation , unfortunately.
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"Those who can't remember the past are condemmed to repeat it".- George Santayana.
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