HARRISBURG, Pennsylvania – In a federal court ruling, Mervat Gharib, 60, and Adam Rashwan, 63, both of Harrisburg, were each sentenced to 21 months’ imprisonment for defrauding the United States out of over $1 million dollars in benefits under what was formerly the federal food stamp program.
According to Acting United States Attorney John C. Gurganus, on October 19, 2022, one-count Informations were returned charging both Gharib and Rashwan, formerly husband and wife, with unauthorized use of benefits from on or about January 2017 through in or about August 2020. In November 2022, both defendants pled guilty.
The United States Department of Agriculture (“USDA”) administers the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the Federal Food Stamp Program. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits. These benefits may not be lawfully exchanged for cash.
The investigation disclosed that Capital City Family Market was a small food retailer and/or convenience store located at 2000 North 6th Street, Harrisburg, Pennsylvania. Gharib was listed as the owner. Rashwan was married to Gharib at that time and employed at the store. Rashwan and Gharib engaged in a scheme to defraud SNAP. The scheme included food stamp trafficking, which occurs when a retailer allows customers to exchange SNAP benefits for cash, charging the customer a significant percentage of the amount of the unlawful transaction.
Between November 2016 and July 2021, 24 undercover transactions occurred at Capital City Family Market during which SNAP benefits were exchanged for United States currency. Agents reviewed FNS records detailing the total amount paid to Capital City Family Market dating to January 2014. From January 2014 through June 2021, Capital City Family Market received approximately $1,806,761 in SNAP benefits. Data from FNS revealed in May 2021 alone, Capital City Family Market processed 408 individual SNAP transactions totaling $96,908.46 with an average transaction amount of $238.86.
Gurganus said that the average transaction amount during the same time period for convenience stores in Pennsylvania was $11.58, and for small grocery stores was $23.16. The unusual number of large transactions at Capital City Family Market alerted the authorities to the possibility of fraud. The investigation revealed that from January 2011 through June 2021, Rashwan and Gharib, through the Capital City Family Market, illegally diverted approximately $1,091,822.05 in SNAP benefits. The business has since closed.
Defendants were also ordered to pay restitution to the USDA’s SNAP program in the amount of $1,091,822.05.
The case was investigated by the United States Department of Agriculture Office of Inspector General – Investigations and the Federal Bureau of Investigation. Assistant United States Attorney William A. Behe prosecuted the case.
Mervat Gharib and Adam Rashwan, the couple behind the scheme, were sentenced on May 21, 2025. They were each charged with unauthorized use of benefits, from January 2017 through August 2020. Gharib and Rashwan were found guilty in November 2022 and were ordered to serve 21 months in prison. The exact date of the crime is from January 2017 through August 2020.
Related Federal Cases
- Laquanta Grant, Tax Fraud and Identity Theft, Alabama 2010 · Washington
- Christopher Furman, Wire Fraud and Money Laundering, Pennsylvania 2009 · California
- Emily Wilson, Investment Adviser Fraud, Pennsylvania, 2023 · Georgia
- Irina Segal, Medicare Fraud, Philadelphia PA, 2023 · California
- Nicole Hilstolsky Sentenced for Embezzlement, Pennsylvania, 2018 · Pennsylvania
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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