Fishy Food Stamp Fraud in Florida - largest food stamp fraud ever

[malaise]

OPA-LOCKA, Fla. (WSVN) -- The fish market at the Opa-locka Hialeah Flea Market is now the home of the largest food stamp fraud scheme ever in the United States, according to federal investigators.

Wednesday morning, the fish market at the flea market was raided by federal agents after authorities found evidence that linked kiosk owners to an illegal food stamp scheme.

At 2 p.m., the United States Attorney's Office held a joint press conference to announce the filing of federal and state charges against the retail store owners and operators in connection with the schemes.

According to U.S. Attorney Wilfredo A. Ferrer, businesses were charging the U.S. government for the food stamps, but instead of giving people food like they were supposed to, they were giving them cash and keeping government money for themselves, as well.

The seafood stores were just a front for an underground illegal operation. A sign hung outside the business even read, "We accept food stamps ... Fresh fish," but there was not an ounce of food in sight.

"They are operating food and produce stands, which literally have nothing for sale, other than the ability to exchange the food stamps or the other benefits for cash," said Ferrer.
http://www.wsvn.com/story/31947435/feds-bust-largest-food-stamp-scam-in-us-at-opa-locka-flea-market

[montanacowboy]

1. This is nothing new

It's called Trafficking - I used to work for USDA as an investigator and it goes on by one on one exchanges or larger outfits like this one.

[Wellstone ruled]

5. And each time there is a

large group or a large family behind these scams. This is what happens when you cut out inspectors.

[gratuitous]

2. Not atypical

But when the ordinary American hears about food stamp fraud, what's the image they have? When they hear about Medicare fraud, do they think of doctors billing millions for non-existent exams, or someone else?

Curious how the "fraud, waste and abuse" in government programs so decried by Republicans is most often perpetrated by well-heeled rip-off artists who coincidentally contribute to Republican campaigns. But that's not who Republicans go after, is it?

[malaise]

3. Precisely

I am looking for the ReTHUGs in this one.

[FrodosPet]

4. Before EBT cards, when food stamps where physical coupons

I was told that you buy a cheap piece of candy or bubble gum, and they gave you regular silver change back for anything under a dollar. So while you could not DIRECTLY buy beer or smokes with food stamps, you could with an end-around.

Of course, if the store itself was game, they did not even put you through that little hoop.
[hr]
https://www.fbi.gov/detroit/press-releases/2014/law-enforcement-crackdown-on-food-stamp-fraud

Law Enforcement Crackdown on Food Stamp Fraud

Eleven Individuals Were Charged and Arrested in Metro-Detroit Today on Criminal Food Stamp Fraud Charges, Announced U.S. Attorney Barbara L. McQuade

U.S. Attorney’s Office September 23, 2014

Today’s announcement comes at the conclusion of a joint federal and state search and arrest warrant operation that investigated retailers in Hamtramck, Warren, and Detroit who were illegally trafficking in food stamps. The charges allege that store owners and employees allowed SNAP and WIC benefit recipients to use their Electronic Benefit Transfer (EBT) cards to exchange their SNAP or WIC benefits for cash. In return, the stores added a surcharge to the recipients’ withdrawal of SNAP and WIC benefits, sometimes in an amount equal to that of the amount of cash benefit received by the recipient. SNAP and WIC benefit funds are transferred electronically directly to bank accounts managed by the retailers. These transactions totaled an estimated $12.5 million during the investigation.

The following individuals were arrested today and will be appearing in federal court this afternoon:

o Al Amin Supermarket, 11920 Conant, Hamtramck, owner Moklasur Mukul, age 36, of Hamtramck;
o Bengal American Grocery, 9800 Joseph Campau Avenue, Hamtramck, manager Mohamed Ali, age 38, resident of Detroit;
o Deshi Bazar, 12045 Conant Street, Hamtramck, owners Ali Ahmed, age 31, and Nazir Ahmed, age 32, and employee Mustak Ahmed, age 34, all residents of Detroit;
o Maloncho Greens House, 12133 Conant Street, Hamtramck, owner Azizur Ullah, age 37, of Hamtramck, and employees Mohammed Chadek, age 44,
o Mohammed Miah, age 38, and Mohammed Amin, age 38, residents of Hamtramck;
o New Al-Madeena Grocery, 2220-2222 Caniff Street, Hamtramck, owner Dilshad Chowdhury, age 34, resident of Hamtramck.
o Pay-Less Foods, 11350 Joseph Campau Avenue, Hamtramck, owner Mohamed Ahmed, age 58, resident of Hamtramck;

~ snip ~

“This investigation and prosecution should send a strong zero-tolerance message to those individuals engaged in the practice of defrauding taxpayer funded WIC and SNAP programs,” said Anthony Mohatt, Special Agent-in-Charge, USDA-Office of Inspector General. “It should also serve as a warning to all stores, that participate in the WIC and SNAP programs as vendors, that fraud and trafficking (purchasing those benefits for cash) will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney’s Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer funded programs.”

“Far from being a victimless crime, the offenders in this investigation brazenly defrauded a combined amount of approximately $12.5 million from taxpayer funded programs,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The SNAP and WIC programs are intended to provide assistance for those in need—not a means of abuse or selfish enrichment. The FBI, along with its federal, state and local partners, remains steadfast in its commitment to root out those who steal from taxpayers and defraud our government programs.”

~ snip ~