Waukegan wife tried to run with the loot! Food stamp fraud again

Here we go again, I could have a story every day (and so could some blogger who wants to take on immigrant food stamp fraud as the subject of an entire blog)!

This bust reported in the Chicago Sun-Times happened in Waukegan, Illinois and they ripped us off for a half million dollars this time.

After a north suburban couple’s grocery was searched during a food stamp and nutrition program fraud investigation, the woman was caught trying to flee with more than $350,000 in a suitcase, federal prosecutors claim.

The couple, who own and operate Sunset Food Market in Waukegan, allegedly defrauded the federal food stamp and nutrition programs of more than $500,000 over the last two years, according to a release from the U.S. Attorney’s office.

So how did Khaled and Fatima happen to be in the US?  Are they Muslims (like all the Mohamads we told you about just 5 days ago, here)?  Most of these stories don’t tell us, but their names give us a hint.

Khaled Saleh, 46, and Fatima Saleh, 35, of Waukegan are charged with one count each of conspiracy to defraud government programs and one count of Agriculture Department program fraud in a two-count indictment returned Wednesday by a federal grand jury in Chicago.

The complaint alleges they exchanged cash with customers who made falsely inflated purchases using food stamp cards and nutrition coupons. They also allegedly purchased items, typically infant formula, that customers bought at other stores using program benefits, paying half of the value and then re-selling the items in their store at a higher price.

The charges followed an investigation in which a USDA Inspector General’s office agent, acting undercover, used program benefits to buy formula at a discount store, then sold it for half the price in cash to the Salehs on several occasions, the release said.

Fatima tried to run with mom and the money (funny, other news outlets reporting this story left the mom out)!

Agents executed a search warrant at Sunset Market on April 26. After the search, Fatima Saleh went to her apartment and agents observed her leaving a short time later with a suitcase and her mother, the release said.

Agents found more than $350,000 cash and more than 800 coupon vouchers for the WIC supplemental food program in the suitcase, the release said. Agents later found another $25,000 in cash in the apartment.

The indictment seeks forfeiture of about $377,000 seized on April 26, as well as more than $14,500 seized from Sunset Market’s bank account.

$500,000 obtained through fraud in less than two years, good work if you can get it!

Between August 2009 and April 2011, the defendants redeemed more than $1.175 million in LINK food stamp and WIC coupons, with more than $500,000 being obtained through fraud, the indictment alleges. The store’s participation in the programs has been suspended [let’s hope so!—ed]

Just a reminder to everyone, not just the purchaser of the benefit can be prosecuted, but so too can the seller of the food stamps in this redistribution of your (taxpayer) wealth scheme.

Sheriff of the year: Why more US troops on Korean border than on US border?

Good question!

From CNS News:

(CNSNews.com) – Arizona Sheriff Paul Babeu said the Obama administration’s decision to extend the deployment of 1,200 U.S. National Guard troops along the U.S. border with Mexico until Sept. 30 is “pandering” and that those numbers “fall far short” of what military power is needed to keep the country safe.

Babeu noted, for comparison, the 28,500 U.S. troops stationed in South Korea to help defend it against North Korean aggression; U.S. troops have been stationed in South Korea for 58 years.

Babeu is the sheriff of Pinal County in southern Arizona and is on the frontlines against illegal immigration, human traffickers, drug smugglers, and potential terrorists. He was named the 2011 National Sheriff of the Year by the National Sheriff’s Association on Sunday, June 19.

“What are we doing?” Babeu told CNSNews.com by telephone. “We need 6,000 armed soldiers on our border to protect America. Homeland Security starts at home.” He was talking about the National Guard.

Read it all!

Feds cracking down on immigration lawyer fraudsters for conning illegal immigrants…

…But what about all the US citizens these lawyers have ripped off through their work?  Isn’t it entirely possible that they also used fraud to acquire legal status for some who didn’t deserve it?

 One such alleged scammer is in Baltimore!  [Readers, this is cross-posted from my Maryland blog, thus the focus on Baltimore.]

On Thursday the Federal government announced a major initiative to protect the poor and “vulnerable” immigrant from immigration lawyers who are conning them and ultimately leading some to deportation proceedings.

From the New York Times:

Immigration officials are teaming up with federal and state prosecutors, the Federal Trade Commission, lawyers’ groups and immigrant advocate organizations in a new nationwide effort to combat an epidemic of schemes by people posing as immigration lawyers.

The campaign, which will begin in Washington on Thursday, is an effort by the Obama administration to step up one form of assistance to immigrant communities, which have intensified their criticism of President Obama as they have faced a record pace of deportations in the last two years.

Officials say this is the first time a crackdown on fake immigration lawyers has been coordinated broadly among federal and state agencies and local immigrant aid organizations. Federal appeals courts in New York, California and other regions with major immigrant populations have been deluged with cases of immigrants who sought legal status through the courts, but ended up in labyrinths leading to deportation because of incompetent or fraudulent lawyers.

[….]

Since January of last year, the immigration agency has tested the program in pilots in New York, Los Angeles, San Antonio and four other cities.

The Associated Press* tells us that BALTIMORE is one of the seven target cities identified by federal authorities where immigration fraud is rampant!

The nationwide effort will focus initially on seven cities where the problem of immigration fraud has been particularly troublesome: Atlanta, Baltimore, Detroit, Fresno, Calif., Los Angeles, New York, and San Antonio.

In fact, in conjunction with this same story I see the Feds have already nabbed one con-artist that had been operating in Baltimore for ten years.  My first thought is which Baltimore City politicians knew about Loma International, and when did they know it!

From Fox 45 Baltimore:

Loma International operated for more than 10 years in downtown Baltimore, scamming on immigrants.

Federal agents cracked down on the scam artist who held out as a lawyer, targeting immigrants and offering to process paperwork so they could get their temporary protected status. Officials say, tens of thousands of dollars were involved.

A new coalition is cracking down on scams that prey on immigrants. Greg Collett says they are working to educate the community on immigration law.

Prey on immigrants?  What about all the cases this phony law firm did manage to process that may well have been fraudulent for other reasons—to the benefit of the illegal alien?

And, note that it is the TEMPORARY PROTECTED STATUS program that was involved.  (See my post last week where I reported that the program itself is a scam!  Readers, I have so much more material on TPS in Maryland and nationally that I will have to make a new category here entitled “Immigration fraud” to keep the information in one place as I post it.)

So why is this happening NOW?  Why are the feds cracking down at this particular time?

Because immigration is a “divisive force” in American politics and it will be a major factor in the 2012 elections!

Those of us involved in the Maryland petition drive for a referendum to halt in-state tuition for illegal aliens have some idea of the answer!  We don’t need to read Joshua Green in the Boston Globe or Adam Martin in the Atlantic Wire, we know from talking to people on the street that immigration is going to be a major issue in the 2012 elections.

Joshua Green writing in the Boston Globe:

….illegal immigration has become a central and divisive force in American politics, and could have major implications for the next election.

Adam Martin (discussing Green’s piece):

….immigration is gearing up to be a major issue in the 2012 elections.

In his column in the Boston Globe today. Joshua Green writes that, while immigration rarely takes the spotlight in Washington’s political debate, it “has become a central and divisive force in American politics, and could have major implications for the next election.” He points out that census data shows a fast-growing legal immigrant population, with the country set to become “majority-minority” by 2040.

[…..]

….. Green points out that after the recent recession, “Whites are far more pessimistic about their prospects and their children’s prospects–and many mistakenly believe that illegal immigrants are the primary culprit.” And the lack of public conversation in Washington, he says, exacerbates that. “The aftershocks of the immigration debate, which was never really resolved, but still permeates how people look at the economy and the future of the country; and the bad economy… has made whites feel particularly pessimistic and sharpened these attitudes.”

It’s impossible to say definitively whether the federal crackdown on immigration abuses stems from some political savvy going on behind U.S. Immigration and Customs Enforcement. But if immigration does emerge as a major issue in the next round of elections, President Barack Obama will be glad to be able to show his agencies are up to speed in handling their enforcement duties.

As I said, it only takes talking to people on the street to know that immigration is a major issue for 2012, and if Obama thinks that cracking down on some con-artists preying on “vulnerable” immigrants is going to work in his favor, he is in dream land!  It might satisfy the immigrants-are-victims lobby but nothing short of closing our borders completely will satisfy most citizen voters.

* This post was getting too long, but I encourage all serious students of this issue to visit the AP story linked here because there is much more behind this whole scheme involving the US Justice Department (maybe even our old buddy Tom Perez is lurking behind the scenes somewhere? Gee, come to think of it, I wonder if he knew the “lawyers” at Loma International when he was a Maryland immigration activist bigwig?)

Stockton, CA: $2.6 million food stamp scammers sent to prison

I’m guessing these prison-bound scammers are Pakistani.  What is a “smoke shop” doing in the food stamp business anyway?  How about if we have a law that food stamps can only be redeemed at large reputable grocery stores?

From The Record:

SACRAMENTO — The owner of a downtown Stockton smoke shop, his brother and daughter, were sentenced to federal prison for running a $2.6 million food stamp fraud scheme from the business, federal officials said today.

Ahmad Khan, 54, and his brother Mumraiz Khan, 49, on Thursday were sentenced to more than five years each for food stamp fraud and money laundering charges, the U.S. Attorney’s Office in Sacramento said. Naheed Khan, 23, was sentenced to spend three years on probation for helping her father and uncle in the scheme, prosecutors said.

While the Smoke Shop & Snack at 435 E. Miner Ave. was authorized to redeem food stamps, in reality prosecutors said they used it as a front to run the fraudulent scheme for five and a half years.

According to prosecutors, the Smoke Shop would buy food stamps for 50 cents on the dollar. Rather than using the public assistance to buy food, prosecutors believe customers used that money to buy illegal drugs.

I have no idea how this family of Khans got into the US, but I urge everyone to start examining the E-2 Treaty Investor program as a possible source of these shop owners scamming food stamps, here.   Here are the E-1 and E-2 Treaty countries.   Awhile ago I did some serious searching around and learned that we have US immigration lawyers whose business it is to process the E-2 Treaty paperwork and even help the “investors” purchase convenience stores.

Another ‘Sahib’ busted in food stamp fraud scheme

And, wow, it’s a big one—$3 million dollar rip-off of the US taxpayer—from (surprise!) Minnesota.

From WCCO (CBS Minnesota):

MINNEAPOLIS (WCCO) – The owner of a St. Paul market was indicted in Minneapolis Federal Court Wednesday for trafficking about $3 million in food stamps, according to court documents.

Khaffak Sahib Ansari, 45 of Arden Hills, was charged Wednesday with three counts of food stamp fraud in connection with the crime. Ansari had owned the Stryker Avenue Market in St. Paul.

The indictment alleges that between January 2006 and Oct. 7, 2010, Ansari exchanged food stamps for money and ineligible merchandise.

$ 3 Million!!!

Court documents also listed that between 2004 and 2009, the average food stamp redemption for a store of similar size was just less than $324,000. Stryker’s redemptions during that time period came out to about $3.1 million.

If convicted, Ansari faces a maximum penalty of five years in prison.

Check out the comments!  As is often the case they are more interesting than one more ho-hum story about food stamp fraud.  A common question: what is his immigration status?    One commenter wants the sellers to be arrested too, not just the store owner who purchases the benefit, because of course it follows that in order for the store owner to break the law he needs food stamp recipients to also break the law by turning their stamps into cold hard cash (from you, the taxpayer).

One of the earlier posts I wrote on Food Stamp Fraud is still one of my favorites—an Arab-American publication questioned why all the food stamp scammers in a big bust all had Arab names.  One politically correct attorney said, ‘nah, it’s just a weird coincidence—nothing to do with ethnicity—kind of like white biker gangs hanging around together and committing crimes.’  I kid you not!