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Waterbury Man Indicted for Food Stamp Fraud
A Jersey City man has been charged with allowing food stamp benefits to be used for cash and ineligible items at a Waterbury grocery store, federal authorities announced today.
According to the indictment, Muhammad Shahbaz, 49, who was employed at WB Trade Fair Grocery, LLC, a grocery and convenience store located at 43 Willow Street in Waterbury, from November 2014 until June 2016, conspired with others to illegally allow customers to redeem their food stamp benefits for cash and other ineligible items, including cigarettes, pipes, hookahs and a circular saw.
The Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power.
SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items.
The indictment alleges that Shahbaz and others allowed customers to redeem their food stamp benefits for cash, which is not a lawful use of SNAP benefits. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
Shahbaz was arrested on a federal criminal complaint on July 31, 2017, and is currently released on a $50,000 bond. He is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia King and Neeraj Patel.
Key Facts
- State: Connecticut
- Category: Fraud & Financial Crimes|Public Corruption
- Source: DOJ Press Release â†â€â€
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