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Nael Jabbar, 47, owner of Hot Spot Super Market in Milwaukee, WI, swindled $1.6M in food stamps by exchanging benefits for cash and billing the program for the full amount. He pled guilty to wire fraud and tax evasion on April 14, 2026.
Since 2005, Jabbar’s Hot Spot Super Market was authorized to accept benefits under the Supplemental Nutrition Assistance Program (SNAP). But from 2021 to 2024, he ran a scheme where he gave SNAP beneficiaries half of the transaction in cash while billing the program for the full amount. The U.S. Department of Agriculture estimated the loss at more than $1.6 million.
Jabbar also evaded taxes by transferring $611,000 from his business bank accounts to his personal accounts and using the funds for personal expenses. He filed false tax returns that did not report all his income, causing a total tax loss to the IRS of more than $87,000.
Jabbar faces up to twenty years in prison and a $250,000 fine on count one, as well as three years in prison and a $250,000 fine on count two. He will be sentenced on July 28, 2026.
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📋 Key Facts
- Crime: White Collar Crime
- Defendant: Tax Evasion
- Location: WI
- Source: DOJ Press Release
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