Update May 15th:  I see ICE was involved in this investigation, that means there was some immigration violation involved too because normally ICE isn’t in on these busts.

Wow!  This is a huge catch, maybe the biggest I’ve seen!  Arrested is Muhammed Farooq and, of course, no mention in this news account about his nationality or immigration status.

New readers, following food stamp fraud is a side hobby of mine (until some enterprising blogger wannabe takes on exposing food stamp fraud as their primary mission!).

From the Star-Ledger:

The owner of four dollar stores in Essex and Union counties has been charged with money laundering and other crimes after investigators determined more than $5 million in fraudulent food stamp transactions took place at his stores, authorities said today.

Muhammed Farooq, 49, of Somerset, was charged with money laundering, theft by deception and food stamp fraud when he was arrested today, Acting Essex County Prosecutor Carolyn Murray said.

Farooq was arrested at around 9 a.m. as police executed search warrants at his four stores and his home, completing an eight-month investigation by the prosecutor’s office, the federal Division of Homeland Security and U.S. Department of Agriculture’s Inspector General, Murray said.

“The Food Stamp program is designed to help people in need,” said Essex County Deputy Chief Assistant Prosecutor Walter Dirkin, director of the county’s financial crimes unit. Any allegation of an abuse of the program will be investigated by this office.”

According to Murray, Farooq was allowing patrons to buy non-food items, such as electronics, with food stamps. He owns two stores in Newark, and one each in East Orange and Elizabeth, Murray said.

The purchases totaled roughly $5.2 million and went on for nearly 2 1/2 years, Murray said.

A search of Farooq’s Somerset home turned up $150,000 in cash, six computers, electronic food stamp machines and detailed business records, Dirkin said.

How did he get here—is he on an investor visa?  Did he send money out of the country?  Inquiring minds want to know!

Did you even know you could use food stamps in Dollar Stores?

For dozens more stories like this one from across the Nation, type ‘food stamp fraud’ into our search function.

Somewhat related:  Food stamp use by refugees jumped dramatically with the arrival of the Obama Administration, here.  The more people on food stamps, the richer the scammers become!

My last post yesterday was on food stamp fraud and our EBT Nation.  This morning four new rip-offs of the US taxpayer make the news—three from New York and one from Florida and they are biggies!   I wonder did these guys get government supported micro-loans to set up their businesses?

From The Tampa Tribune:

A St. Petersburg convenience store clerk has been convicted of participating in a food stamp fraud scheme that cost the federal government an estimated $350,000.

Isam Nasser, 30, of St. Petersburg, was found guilty by a jury Wednesday of conspiracy to defraud the government and commit wire fraud, five counts of wire fraud, and five counts of food stamp fraud, according to a release from U.S. Attorney Robert E. O’Neill, of the Middle District of Florida.  [Wire fraud?  Was Nasser sending your tax dollars abroad to Egypt maybe? Just wondering—ed]

According to evidence at the trial, Nasser was a clerk at the Hungry Baba, a convenience store owned and operated by Mehdi Babul. During the conspiracy, Hungry Baba participated in the Supplemental Nutrition Assistance Program, formerly known as the Food Stamp Program, which is run by the federal Department of Agriculture.

From November 2008 through April 2010, Babul, Nasser and others  conspired to cheat SNAP by purchasing benefits from customers for cash, minus a fee of about 50 percent of the amount charged to the recipient’s account, the release said.

The transactions are illegal and known as “discounting” or “cash-back.” According to testimony at the trial, the estimated loss to the USDA was more than $350,000.

Nasser faces up to five years in federal prison on the conspiracy charge, up to 20 years on the wire fraud charge, and one year on each of the food stamp fraud charges, the release said. Nasser will be sentenced July 10.

From CNYCentral.com (Syracuse):

SYRACUSE — Three Syracuse markets were searched Thursday morning in connection with an investigation in to New York food stamp fraud and trafficking violations. Four individuals were arrested for falsifying business records and misuse of food stamps.

[….]

Officials say the raids were the result a year-long investigation. The three stores were purchasing food stamp benefits at a rate less than their full value from customers.

The S&R Convenience store is accused of committing fraud against the federal food stamp program for approximately $210,000. Malek Mobarez, of S&R Convenience, is charged with falsifying business records and misuse of food stamps. He was issued an appearance ticket.

Lexington Market is accused of committing fraud against federal food stamp program for approximately $170,000. Joudah Mere, of Lexington Market, is charged with falsifying business records and misuse of food stamps. He was issued an appearance ticket.

All American Market is accused of committing fraud federal food stamp program for approximately $60,000. Moufida Ibrahim and Edres Ibrahim, of All American Market, were charged with falsifying business records and misuse of food stamps. They were both issued appearance tickets.

As is the case in the majority of these fraud busts, no mention is made of nationality or immigration status of the accused fraudsters (media code of silence?).

For new readers, this is my hobby (has been for going on 6 years) alongside my hobby of writing about our refugee and asylum programs.  We desperately need a real investigative reporter to tie all these immigrant-run schemes together.  This is not a coincidence that such a  large percentage of convenience stores are owned by immigrants who then steal from the US taxpayer.

Dear real investigative reporter:  Just type ‘food stamp fraud’ into our search function, I’ve done all the research on cases you will need—except for how these perps do it (get into the US, buy the store, and go into the fraud business).