GARY, IN – Mohammad Zaidan, 53, of Palos Heights, Illinois, is headed to federal prison after admitting to a brazen scheme to defraud the U.S. Department of Agriculture out of over $5 million. The owner of Tarrytown Food Mart in Gary, Indiana, Zaidan was sentenced to 41 months behind bars by U.S. District Court Judge Philip P. Simon, with an additional year of supervised release to follow.
Acting U.S. Attorney Tina L. Nommay announced the sentencing following Zaidan’s guilty plea to wire fraud. The scheme, which ran from December 2015 through November 2020, centered on the illegal exchange of SNAP benefits – commonly known as food stamps – for cash at Zaidan’s store. It wasn’t about providing food to those in need; it was a calculated effort to pocket illicit profits.
Investigators uncovered that Zaidan offered “cash-back” to customers who used their SNAP benefits at Tarrytown Food Mart. For every dollar of benefits used, customers received a discounted amount of cash, creating a clear violation of federal regulations and a direct theft from a program designed to help vulnerable families. The total restitution ordered against Zaidan is a staggering $5,124,212.73 – a sum taxpayers will ultimately bear the burden of.
The operation wasn’t a spur-of-the-moment decision. It was a sustained, years-long effort to exploit a vital social safety net. Sources close to the investigation describe a systematic process where Zaidan knowingly facilitated the illegal transactions, prioritizing profit over the intended purpose of the SNAP program. The scale of the fraud suggests a level of sophistication and disregard for the law that demands a significant penalty.
The U.S. Secret Service, alongside the U.S. Department of Agriculture’s Office of Inspector General, conducted the investigation, piecing together the evidence needed to bring Zaidan to justice. Assistant U.S. Attorneys Jennifer Chang and Molly Kelley spearheaded the prosecution, presenting a compelling case that led to the guilty plea and subsequent sentencing. This case serves as a warning: exploiting federal programs for personal gain will not be tolerated.
While 41 months may seem like a substantial sentence, critics argue it doesn’t fully address the harm caused by Zaidan’s actions. The stolen funds represent a loss of vital resources for families struggling with food insecurity. The Grimy Times will continue to follow this case and report on any further developments, including the recovery of restitution funds and potential impacts on the SNAP program in the Gary, Indiana area.
Related Federal Cases
- Daneen Bilodeau, Wire and Bank Fraud, Illinois 2015 · Michigan
- Christopher Watson, Bank and Wire Fraud, Louisiana 2024 · Washington
- Wendell Burts, Bank Fraud Conspiracy, Illinois 2024 · Michigan
- Oliver Coverson, Bank Fraud, Illinois 2024 · Indiana
- Damone J. Scott, Wire Fraud Conspiracy, IL 2024 · Minnesota
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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