Ypsilanti Store Operators Indicted for Fraud

Four men who owned and operated the Abbas Phone Card and Grocery store at 2279 Ellsworth Road in Ypsilanti were arraigned today in federal court on charges they conspired to commit federal crimes and to defraud the United States, and aided and abetted each other in committing food stamp and WIC fraud, United States Attorney Terrence Berg announced today. All four men live in Ann Arbor. They are:

• AIDARUS ABBAS MOHAMED, 54, the owner of the store, the authorized signatory on the store’s bank account, and the applicant for federal food stamp and WIC benefits; and his brother,
• MOHAMED MOHAMED-ABAS SHEIKH, 46, the manager of the store; and Sheikh’s sons,
• AHMED MOHAMED ABAS, 23, and
• ABDURAHMAN MOHAMED ABAS, 20, who worked in the store regularly.

Berg was joined in the announcement by Andrew G. Arena, FBI Special Agent in Charge, and Special Agent in Charge Joe N. Smith, U.S. Department of Agriculture, Office of the Inspector General.

According to the indictment, between January 2005 and April 8, 2009, the four men fraudulently obtained over $432,800 by redeeming food stamp and WIC benefits for cash, phone cards, carpets, knives, and other non-food and ineligible items. The men took a substantial commission for themselves in cash. The men also sent some of the money to unknown recipients located in the Horn of Africa, Europe, the Persian Gulf, and West Africa, through their operation of an unlicensed money remitting business.

Federal law strictly forbids the sale of food stamp benefits inasmuch as Congress created and funded the program for the express purpose of helping to feed individuals and families that would otherwise be unable to purchase food to sustain themselves.

United States Attorney Berg said, “The food stamp program is intended to provide millions of low income American families with their nutritional needs. However, abuse by some stores threaten the integrity of the entire program and this office will aggressively pursue those who seek to destroy it.”

Special Agent in Charge Arena said, “The food stamp and WIC programs are government programs supported by taxes from hard working Americans and meant for low income families who need the assistance. The FBI is committed to investigate those who commit fraud against the government programs meant to assist those families.”

Special Agent in-Charge Smith said; "The USDA Office of Inspector General, Office of Investigations, is committed to aggressively investigating the criminal activities of store owners and employees who deprive needy citizens of the Detroit metropolitan area access to nutritious meals. We appreciate the assistance from our partners in the Federal and state law enforcement community."

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.

The case was investigated by special agents of the FBI and USDA-OIG. The case is being prosecuted by Assistant U.S. Attorneys Cynthia Oberg and Rita Elizabeth Foley.