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Convenience Store Owner Admits to Million Dollar Food Stamp Fraud Scheme

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posted on Jun, 7 2016 @ 02:00 PM
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Here's a good story about a convenience store owner who got away with more than $1 million trading off EBT for cash.

The owner has pled guilty after getting caught.

One way he made money was to keep half of the amount for himself.

Bet he thought he would never get nailed !!!

Convenience Store Owner Admits to Million Dollar Food Stamp Fraud Scheme


Sami Almuhtaseb, 45, of Smithfield, R.I., owner of Oasis Market, a convenience store located in Providence, pleaded guilty in federal court on Friday to defrauding the Supplemental Nutrition Assistance Program (SNAP) of more than $1.1 million dollars. Almuhtaseb admitted to the court that he allowed SNAP recipients to exchange food stamp benefits for cash, in return charging them a surcharge of 100% which he pocketed.

According to information presented to the court, between November 2009 and December 2015, the defendant’s store redeemed $2,755,125 in SNAP benefits. Over $1,259,320.99 or 45% of the food stamp transactions were for transactions of $100 or more. Over 72% of the SNAP transactions at the store were from transactions in excess of $50. Legitimate SNAP transactions at a convenience store rarely involve a transaction of $50 or more.






posted on Jun, 7 2016 @ 02:21 PM
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Just the tip of the iceberg....



posted on Jun, 7 2016 @ 02:25 PM
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Stealing $1.1M from the program. Pathetic.



posted on Jun, 7 2016 @ 02:34 PM
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originally posted by: IAMTAT
Stealing $1.1M from the program. Pathetic.


While I don't condone what the store owner did, notice you never hear about them prosecuting the customers who are also part of the fraud.



posted on Jun, 7 2016 @ 02:38 PM
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a reply to: Edumakated


Because they were "victimized".

They had to sell their free benefits at 50% of their anticipated value to this crook of a store owner.

He was taking advantage of the poor, they had no choice.



posted on Jun, 7 2016 @ 02:42 PM
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originally posted by: Edumakated

originally posted by: IAMTAT
Stealing $1.1M from the program. Pathetic.


While I don't condone what the store owner did, notice you never hear about them prosecuting the customers who are also part of the fraud.


And yet people want more tax payer funded welfare programs for people to abuse.

I worked at a convenience store before and I always enjoyed being able to turn down customers that tried to use their food stamp cards on chips, pop and candy (the owner refused to set up the system to accept this type of payment, out of principal.. nothing in a convenience store should be bought with food stamps). There would be people that would come in, grab $50+ worth of JUNK and try to use their SNAP card. Rudest people as well.



posted on Jun, 7 2016 @ 02:45 PM
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A friend of mine worked in a Welfare office in San Diego, he quit after witnessing all the corruption going in there, the Bosses had an army of welfare recipients who gave him a 'cut', many people had several welfare 'accounts', and no they don't check for valid SSN. And if one of the little guys got caught with the same racket you know what happened next.



posted on Jun, 7 2016 @ 02:47 PM
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a reply to: xuenchen

Stealing from the poor, i mean how low can you go? I know lets ask the government, considering they have been at it for years.

Sad bastard all the same!


edit on 7-6-2016 by andy06shake because: (no reason given)



posted on Jun, 7 2016 @ 02:52 PM
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originally posted by: 200Plus
a reply to: Edumakated


Because they were "victimized".

They had to sell their free benefits at 50% of their anticipated value to this crook of a store owner.

He was taking advantage of the poor, they had no choice.



More likely they wanted the money for products the food stamps didnt cover.



posted on Jun, 7 2016 @ 02:55 PM
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originally posted by: Pyrrho

originally posted by: Edumakated

originally posted by: IAMTAT
Stealing $1.1M from the program. Pathetic.


While I don't condone what the store owner did, notice you never hear about them prosecuting the customers who are also part of the fraud.


And yet people want more tax payer funded welfare programs for people to abuse.

I worked at a convenience store before and I always enjoyed being able to turn down customers that tried to use their food stamp cards on chips, pop and candy (the owner refused to set up the system to accept this type of payment, out of principal.. nothing in a convenience store should be bought with food stamps). There would be people that would come in, grab $50+ worth of JUNK and try to use their SNAP card. Rudest people as well.


The scam is that a lot of the customers are drug addicts or just hustling for cash. The store owners essentially act as a money laundering facility trading the food stamps for cash. This type of thing is very common in the hood. Basically give the store owner say $100 in food stamps for $50 bucks in cash. Ringing up mislabeled goods that you aren't supposed to buy. Ring up the $50 worth of food UPC but really sell a six pack of beer.

There are no "victims." Both sides are willing participants.



posted on Jun, 7 2016 @ 02:55 PM
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originally posted by: 200Plus
a reply to: Edumakated


Because they were "victimized".

They had to sell their free benefits at 50% of their anticipated value to this crook of a store owner.

He was taking advantage of the poor, they had no choice.


There is always a choice. But selling food stamps to buy drugs is breaking two laws.



posted on Jun, 7 2016 @ 03:17 PM
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originally posted by: Edumakated

originally posted by: Pyrrho

originally posted by: Edumakated

originally posted by: IAMTAT
Stealing $1.1M from the program. Pathetic.


While I don't condone what the store owner did, notice you never hear about them prosecuting the customers who are also part of the fraud.


And yet people want more tax payer funded welfare programs for people to abuse.

I worked at a convenience store before and I always enjoyed being able to turn down customers that tried to use their food stamp cards on chips, pop and candy (the owner refused to set up the system to accept this type of payment, out of principal.. nothing in a convenience store should be bought with food stamps). There would be people that would come in, grab $50+ worth of JUNK and try to use their SNAP card. Rudest people as well.


The scam is that a lot of the customers are drug addicts or just hustling for cash. The store owners essentially act as a money laundering facility trading the food stamps for cash. This type of thing is very common in the hood. Basically give the store owner say $100 in food stamps for $50 bucks in cash. Ringing up mislabeled goods that you aren't supposed to buy. Ring up the $50 worth of food UPC but really sell a six pack of beer.

There are no "victims." Both sides are willing participants.


The victims are the tax payers whose money is getting thrown away.



posted on Jun, 7 2016 @ 03:17 PM
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a reply to: Edumakated

When i was a wane i mind the ice cream van used to take milk tokens for fags but they never dished out real cash.

Times have changed i imagine.



posted on Jun, 7 2016 @ 03:21 PM
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originally posted by: Pyrrho

originally posted by: Edumakated

originally posted by: Pyrrho

originally posted by: Edumakated

originally posted by: IAMTAT
Stealing $1.1M from the program. Pathetic.


While I don't condone what the store owner did, notice you never hear about them prosecuting the customers who are also part of the fraud.


And yet people want more tax payer funded welfare programs for people to abuse.

I worked at a convenience store before and I always enjoyed being able to turn down customers that tried to use their food stamp cards on chips, pop and candy (the owner refused to set up the system to accept this type of payment, out of principal.. nothing in a convenience store should be bought with food stamps). There would be people that would come in, grab $50+ worth of JUNK and try to use their SNAP card. Rudest people as well.


The scam is that a lot of the customers are drug addicts or just hustling for cash. The store owners essentially act as a money laundering facility trading the food stamps for cash. This type of thing is very common in the hood. Basically give the store owner say $100 in food stamps for $50 bucks in cash. Ringing up mislabeled goods that you aren't supposed to buy. Ring up the $50 worth of food UPC but really sell a six pack of beer.

There are no "victims." Both sides are willing participants.


The victims are the tax payers whose money is getting thrown away.



Yes, I agree.



posted on Jun, 7 2016 @ 03:22 PM
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Shocking, not. It's usually the recipients who are accused of fraud. How about people such as the man in the Op to the bigger system as a whole. Imagine the corruption at the top of that pyramid-IE Chase for runs the benefits cards.



posted on Jun, 7 2016 @ 03:24 PM
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a reply to: Edumakated

Our taxes get thrown away on expensive toys like nuclear submarines and aircraft carriers anyway, never mind all those black budget off the shelf programs that will never see the light of day.

In the end its all a bump, no matter which way you wish to look at it.
edit on 7-6-2016 by andy06shake because: (no reason given)



posted on Jun, 7 2016 @ 03:29 PM
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I was being sarcastic.

I have a hard time going to the local corner store without at least one person offering to buy my stuff with their EBT card in exchange for cash. It's like they post up at the door waiting.

As long as there are people getting something for free, there will be people trying to make a profit from it.
edit on 7-6-2016 by 200Plus because: wrong "there"



posted on Jun, 7 2016 @ 03:38 PM
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originally posted by: 200Plus
a reply to: Edumakated


Because they were "victimized".

They had to sell their free benefits at 50% of their anticipated value to this crook of a store owner.

He was taking advantage of the poor, they had no choice.


No other stores around? Of course they had a choice. Their greed got the better of them, just as his did.

Edit: Sorry if you were actually being sarcastic instead of backpeddling.

edit on 7-6-2016 by superman2012 because: (no reason given)



posted on Jun, 7 2016 @ 09:50 PM
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a reply to: xuenchen

Of course, those who sold their benefits were not buying food with them, either!! Drugs? Smart phones? Manicures? Cars? Hope they can prosecute the SNAP recipients as well.




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