Three East Bay defendants have been indicted for allegedly conspiring to defraud the United States through a scheme involving the Supplemental Nutritional Assistance Program (SNAP), also known as food stamps.
A federal grand jury handed down a superseding indictment against Ali Mugalli Hassan, 29, of Alameda, Calif., and his family members, Mugalli Ahmed Hassan, 48, and Ahmed Ahmed Hasan Dharahan, 38, both of Oakland. The indictment alleges that the defendants unlawfully trafficked federal benefits, defrauding the United States Department of Agriculture (USDA) of millions of dollars.
The convenience store, owned by Ali Mugalli Hassan, was an authorized vendor for the USDA’s SNAP program. Between August 2014 and November 2017, the store redeemed over $2.3 million in SNAP benefits. However, the defendants allegedly purchased benefits from store customers for 50 cents on the dollar, enabling them to use the cash for any purpose.
As part of the scheme, the defendants also kept customers’ EBT cards and used these cards at other stores to purchase items for themselves using the federal benefits.
Each defendant was charged with one count of conspiracy to commit benefits fraud and to defraud the United States, one count of benefits fraud, one count of conspiracy to commit wire fraud, and twelve counts of wire fraud and aiding and abetting.
Defendants Ali Mugalli Hassan, Mugalli Ahmed Hassan, and Ahmed Ahmed Hasan Dharahan were arrested and made their initial appearance in federal court in Oakland on March 14, 2019. They were released on bond and are scheduled to appear in court again on March 15, 2019.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum statutory sentences:
Conspiracy to Commit Benefits Fraud and to Defraud the United States: 5 years of imprisonment and a $250,000 fine
Benefits Fraud ($5,000 or more): 20 years of imprisonment and a $250,000 fine
Conspiracy to Commit Wire Fraud: 20 years of imprisonment and a $250,000 fine
Wire Fraud (each count): 20 years of imprisonment and a $250,000 fine
Additionally, the court may order up to three years of supervised release, additional assessments, and restitution, if appropriate.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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