Related Federal Cases
- Paxton Blocks Rogue OK Property Owner from Texas Land Grab · Oklahoma
- Texas Con Man Accused of $1M MRI Fraud · Kansas
- Montana Fraud & Sex Offender Crackdown · Texas
- Pierce Co. Hard Money Lender Emiel Kandi Facing Major Mortgage Fraud Charges · Washington
- Armando Hernandez Leal Arrested for $66M Investment Fraud · Texas
Convenience Store Owner Sentenced for Food Stamp Fraud
A former convenience store owner in Arlington, Texas, has been sentenced to 57 months in federal prison for his role in a food stamp fraud scheme. Ali Ugas Mohamud, the owner of Tawakal Grocery Store, was found guilty of exchanging food stamp benefits for cash and wiring money to individuals in Somalia.
According to documents filed in the case, Mohamud participated in the Supplemental Nutrition Assistance Program (SNAP) and was authorized to accept electronic benefit cards (EBT). However, he knowingly exchanged SNAP benefits for cash or wired money to other individuals.
The scheme, which began in 2009, also involved Mohamud wiring thousands of dollars from Affiliated Computer Services, Inc. to his bank in Arlington. The case was investigated by multiple agencies, including the U.S. Department of Agriculture – Office of Inspector General and the Internal Revenue Service Criminal Investigation.
U.S. District Judge John McBryde sentenced Mohamud to 13 concurrent sentences of 57 months each, making his total sentence 57 months. In addition to his prison time, Mohamud was ordered to pay $1,418,027 in restitution, with $98,000 payable immediately.
Mohamud’s scheme was discovered and he was charged with seven counts of food stamp fraud, five counts of wire fraud, and one count of conducting an unlicensed money transmitting business. He pleaded guilty to the charges in October 2012.
Assistant U.S. Attorney J. Michael Worley was in charge of the prosecution. The case serves as a reminder of the importance of upholding the integrity of government programs, such as SNAP, and the consequences of those who seek to exploit them for personal gain.
The investigation and prosecution of Mohamud’s scheme demonstrate the commitment of law enforcement agencies to protecting the public trust and holding accountable those who engage in white-collar crimes.
Ali Ugas Mohamud’s sentencing serves as a warning to others who may consider engaging in similar schemes. The consequences of food stamp fraud can be severe, and those who are found guilty can face significant prison time and financial penalties.
RELATED: Indian National Gets 20-Month Sentence for Fraudulent Robberies
RELATED: Meth Queen Carter Gets 6+ Years
Key Facts
- State: Texas
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
