Providence convenience store owner pleads guilty to food stamp fraud scheme

U.S. ATTORNEY for Rhode Island Peter F. Neronha said a Providence convenience store owner admitted to food stamp fraud in federal court last week. / COURTESY U.S. ATTORNEY'S OFFICE
U.S. ATTORNEY for Rhode Island Peter F. Neronha said a Providence convenience store owner admitted to food stamp fraud in federal court last week. / COURTESY U.S. ATTORNEY'S OFFICE

PROVIDENCE – The owner of Oasis Market convenience store pleaded guilty last week to a million-dollar food stamp fraud scheme.

Sami Almuhtaseb, 45, of Smithfield, admitted in federal court on April 15 to defrauding the Supplemental Nutrition Assistance Program of more than $1.1 million dollars. He said that he allowed SNAP recipients to exchange food stamp benefits for cash, in return charging them a surcharge, which he kept, according to a news release from the U.S. Attorney’s Office.

Between November 2009 and December, the defendant’s store redeemed $2,755,125 in SNAP benefits. More than $1,259,320.99, or 45 percent, of the food stamp transactions were for transactions of $100 or more. And, more than 72 percent 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, the release said.

Court documents stated that at least $1.1 million dollars worth of the SNAP funds received by Almuhtaseb were from fraudulent transactions.

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The release said that the fraudulently obtained funds were deposited into two bank accounts controlled by Almuhtaseb, and that he withdrew more than $770,000 in cash or checks payable to himself from the accounts.

Almuhtaseb appeared before U.S. District Court Chief Judge William E. Smith. He pleaded guilty to conspiracy to commit Supplemental Nutrition Assistance Program fraud and to money laundering. He will be sentenced on July 22.

The matter was investigated by the U.S. Attorney’s Office, the U.S. Department of Agriculture Office of Inspector General, and the FBI.

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