BALTIMORE, MD – Mahmood Hussain Shah, 58, of Catonsville, Maryland, is facing up to 20 years behind bars after a federal jury found him guilty of wire fraud. Shah ran a brazen scheme, siphoning over $1,610,556 in Supplemental Nutrition Assistance Program (SNAP) benefits – formerly known as food stamps – and converting them to cold, hard cash.
The operation, conducted through Shah’s Corner Groceries on Darley Avenue in Baltimore, ran from October 2010 to August 2016. Shah, along with his co-defendant Muhammad Rafiq, 33, of Reisterstown, Maryland, wasn’t selling groceries; they were selling a shortcut for desperate individuals to bypass the system. Instead of providing approved food items, Shah offered SNAP recipients roughly half the value of their benefits in cash, pocketing the rest as pure profit.
Federal investigators revealed Shah employed several tactics to evade detection. He’d often split large transactions into smaller ones over hours or even days. In other instances, he’d process the fraudulent SNAP benefits at a different store entirely, masking the illegal activity. The SNAP program, administered by the USDA and state agencies, is designed to provide low-income individuals with access to nutritious food via Electronic Benefit Transfer (EBT) cards – the “Independence Card” in Maryland.
The Department of Justice clarified that authorized retailers like Corner Groceries are supposed to use point-of-sale terminals to verify EBT card information and deduct funds *only* in exchange for approved food purchases. Reimbursements are made electronically. Shah systematically violated this trust, treating the program as a personal ATM. The USDA Office of Inspector General and the FBI’s Baltimore Field Office spearheaded the investigation, which ultimately brought Shah down.
Acting United States Attorney for the District of Maryland, Stephen M. Schenning, praised the collaborative efforts of the FBI and USDA’s Office of Inspector General. Assistant U.S. Attorneys Sean R. Delaney and Paul E. Budlow successfully prosecuted the case, securing the conviction. This isn’t just about money; it’s about stealing resources meant for families struggling to put food on the table.
Shah’s sentencing is scheduled for May 29, 2018. If convicted, he faces a maximum sentence of 20 years in federal prison. The case serves as a stark reminder that exploiting programs designed to help the vulnerable will not be tolerated. The Grimy Times will continue to follow this case and report on any further developments.
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Key Facts
- State: Maryland
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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