Thread: State Busts $1.5 Million Food-Stamp-for-Cash Ring

Contact: Rusty Hills or Matt Frendewey, Media Contacts 517-373-8060
Agency: Attorney General

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State Busts $1.5 Million Food-Stamp-for-Cash Ring
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February 12, 2008

LANSING - Attorney General Mike Cox today announced charges against 27 people associated with eight stores in Detroit who are alleged to be involved in food stamp trafficking totaling more than $1.5 million.

"This is a crime against taxpayers and those who are most vulnerable," said Cox. "The cost to taxpayers as a result of this fraudulent activity is staggering."

The Michigan Department of Human Resources, Office of Inspector General, conservatively estimates that about 4% of all food stamp transactions are fraudulent. There is $115 million spent with food stamps every month in Michigan. This means approximately $4.6 million in fraudulent transactions take place every month in Michigan (or $55.2 million per year). Wayne County alone accounts for slightly less than 1/3 of the food stamp transactions, which translates into an estimated food stamp fraud in Wayne County alone of around $16 million per year.

"Let today's operation be a warning that this type of fraud will not be tolerated," said Col. Peter C. Munoz, Director of the Michigan State Police. "Working with our partners at the Michigan Department of Human Services, the Michigan Attorney General's Office, and the United States Department of Agriculture, we will ensure that food benefits are used to help those in need rather than to pad the pocketbooks of business owners."

"This operation was a great example of teamwork, and I want to thank all of the various departments and agencies that made today's arrests possible," Cox said. "My office teamed up with the Michigan State Police, the U.S. Department of Agriculture, and the Michigan Department of Human Services and together we will continue to fight this fraudulent activity."

Throughout the duration of this investigation, investigators utilized confidential informants and/or police officers working in an undercover capacity to conduct fraudulent transactions where they would receive cash for food stamp benefits. During these undercover operations, the confidential informants and/or police officers were equipped with devices for recording video and/or audio footage of the fraudulent transactions with the store owners and/or employees. The defendants are charged with a felony violation of the food stamp act for which the maximum penalties are 10 years imprisonment and/or $250,000 in penalties. In addition, the stores and its owners and employees are charged with conducting a continuing criminal enterprise (punishable by up to 20 years imprisonment and/or $100,000 and criminal forfeiture of proceeds), conspiracy (up to 5 years imprisonment and/or $10,000 fine), electronic benefit transfer (EBT) card fraud (4 years imprisonment and/or $4,000 fine), and money laundering (10 year imprisonment and/or $100,000 in fines).

A criminal charge is merely an accusation and all persons are presumed innocent until proven guilty beyond a reasonable doubt.


The following lists the various defendants and the stores with which they are associated:


STORES
DEFENDANTS

Citgo

8351 Woodward Detroit, Michigan
Nabil Shamel, owner

Jamal Chami, employee

Waad Fawazi, employee

Livernois Gasoline

7645 Livernois Detroit, Michigan

Hafaid Musleh-Mohmood Alkahif, owner

Abdul Fattah-Mohmood Alkahif, employee

Dheyab M. Alquhaif, employee

Ammar Mahmood Gobah, employee

Mustafa Mohamen-Ahmed Alqohaif, employee

Yousef Mohamed-Ahmed Alqohaif, employee


U&I Petro

8820 Wyoming Detroit, Michigan
Saleh Algathaithi, owner

Saif Ahmed Alghathie, employee

Hassan Ali Hussein, employee


C&M Mini Mart

18420 James Couzens Detroit, Michigan
Abdo Mahfouz, owner

Ali Abdo Mahfouz, employee

Tarek Moshen Baderddine, employee


Rowan Party Store

7000 Rowan

Detroit, Michigan
Saeb Abdul-Ghani Abdul-Ghani, owner

Joseph Soliman Elrubi, employee

Maher Diab, employee


Big Al's Marathon

3910 Grand River Detroit, Michigan
Hussien Kamel Beydoun, owner

Ali Hussein Beydoun, employee

Van Dyke Petro

19030 Van Dyke Detroit, Michigan

Taha Ahmad Dika, owner

Nizar Ali Nazha, employee

Michael Maher, employee

Bassel Ibrahim-El-Sayed-Sleim Hachem, employee

Schaefer & Puritan 15901 Schaefer Detroit, Michigan
Mr. and Mrs. Adel Mohamad Kobeissi, owner

Khaled Abid Al-Bonijim, employee

Moahamad A. Berro, employee

http://michigan.gov/ag/0,1607,7-164--185411--,00.html

Per Debbie Schlussel.com:

"And I was right. But I had no idea I was right by reading today's Detroit Newsistan AND Detroit Free Press. While both had big stories on the food stamp ring--which ripped off taxpayers to the tune of over $1.5 million--neither story would publish the names of the defendants even though they were in the press release. Why?

Well, all of the individuals in this ring are Muslim Arabs, Shi'ites from Lebanon. And many of them are from prominent Hezbollah families: Beydoun, Chami, Berro, etc. Gee, what a shocker. Most of these individuals live modestly. So what happened to the money? How quickly was it funnelled to Hezbollah back home in Lebanon? And where the heck is the FBI--the LEAD agency in investigating terrorism? Famous but incompetent is NOT interested.

This isn't the first time I've written about Muslim Arabs in America conducting food stamp fraud and likely benefitting Islamic terrorists. Sadly, it won't be the last. Most food stamp fraud rings across America are Muslim.

Read both Detroit Newsistan and Free Press stories. Not a hint about who these people are. I guarantee you if they had names like Steven Grant or John Smith, their names would have appeared in these papers with a pro-Islam PC agenda. Since they won't print the names and addresses of these pan-Hezbollah scam artists, I WILL...

http://www.debbieschlussel.com/

Food Stamp fraud cropping up everywhere
Posted by acorcoran on February 6, 2008

As I mentioned in my previous posts on Food Stamp fraud, this doesn’t have anything to do with refugees. Although refugee food stamp useage is increasing and more than half of all refugees use food stamps, we hope they are all using taxpayers’ funds to feed themselves and their families. I suspect they may, however, be susceptible to the temptation of turning food stamps into cash via the increasing number of small convenience stores like the one we have in Hagerstown, MD that was recently raided by Federal agents and where local police arrested the owner for suspicion of selling drug parapharnalia.

Thanks to Janet Levy we learned that there has been another Food Stamp scam bust in St. Paul, Minnesota.

Three men connected with Twins Market and Meats in St. Paul have been ordered to pay more than $1 million in restitution for fraudulently redeeming food stamps.

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Store owner Anwar Sarama, 32, of Bloomington, was sentenced to 24 months in prison and store manager Soud Salem, 46, of Farmington, was sentenced to 36 months in prison.

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Both men were ordered to pay a total of $757,320.66 in restitution.

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Store employee Amjud Musleh, 28, of Bloomington, was sentenced to 18 months in prison and ordered to pay $402,302.91 in restitution.

We followed up and obtained a press release from the US Attorney’s Office in Minnesota and it reported that under the previous owners of the store the average monthly food stamp redemptions ran around $9,000 a month. Under the new owners sentenced above, Anwar Sarama, Soud Salem, and Amjud Musleh, the redemptions gradually increased until they reached $100,000 a month. That’s a lot of bread and milk!

St. Paul Police Dept. Commander Dave Korus said, “Joint operations such as these work to not only bring people to justice for criminal acts, but also bring peace back to the neighborhood. This store was a seat for criminal activity….â€

OUTRAGEOUS!

I won't even say what else I'm thinking right now.

one thing , it is Mi . Lot of Illegals and Muslims up there . Only so many 7/11's to go a round . it will get worst

If they are recent citizens they should be deported. Enough is Enough and they do not care about their new country nor its citizens so send them to where ever the H they came from.

Don't even send them to jail and use more taxpayer money.Confiscate everything they own and DEPORT NOW.