Abraham Elsaghir, Bankruptcy Fraud, Michigan 2023

DETROIT – A Dearborn, Michigan husband and wife, Abraham Elsaghir, 52, and Samar Elsaghir, 51, were arraigned yesterday on charges of false statement to an agency of the United States, tax evasion, and bankruptcy fraud, U.S. Attorney Dawn N. Ison announced today.

On the same day, both individuals pleaded guilty before Judge Laurie J. Michelson.

Abraham Elsaghir pleaded guilty to one count of false statement to an agency of the United States, one count of federal income tax evasion, and one count of bankruptcy fraud. Samar Elsaghir pleaded guilty to one count of false statement to an agency of the United States and one count of federal income tax evasion.

According to the information and the plea agreements, in May 2017, Abraham and Samar Elsaghir filed a voluntary Chapter 7 petition in bankruptcy, and they received a discharge of their debts in August 2017. As the plea agreement acknowledges, however, the Elsaghirs made false declarations in their bankruptcy petition, by both failing to report and underreporting their income. During the same time period, the Elsaghirs made similar false statements to both the I.R.S. on their 2016 tax return and to the U.S. Department of Agriculture in order to receive Supplemental Nutritional Assistance Program (SNAP) benefits, commonly known as food stamps.

The Elsaghirs agreed that, from 2014-2020, they had received nearly $60,000 in SNAP benefits they were not entitled to receive, and that they, in fact, owed the I.R.S. an additional $70,000 for tax calendar years 2014-2018. Abraham Elsaghir also agreed he owed and to pay over $166,000 to unsecured creditors in the bankruptcy case.

“We have seen an unprecedented number of people commit fraud on government programs. This case involved multiples layers of deception – lying to the bankruptcy court, the I.R.S., and the U.S.D.A. This conduct will not be tolerated, and individuals who make false statements to exploit resources intended for those most in need will be vigorously investigated and prosecuted.”

“Working with our law enforcement counterparts and the U.S. Attorney’s Office to pursue and prosecute individuals who repeatedly make false statements to government agencies helps ensure the integrity of government processes,” said Josh Hauxhurst, Acting Special Agent in Charge of the FBI’s Detroit Division. “This investigation sends the message that those who lie to federal investigators and commit fraud in the process will be held accountable.”

Sentencing of Abraham Elsaghir is pending.

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