New Haven Store Operators Who Defrauded Food Stamp Program are Sentenced

Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, announced that a Hamden couple who defrauded the federal Food Stamp Program were sentenced today in Bridgeport federal court.

On January 22, 2009, NADIA ALI HAIDER, 29, and her husband, ABDUL HAKIM MUSAED, 45, pleaded guilty to one count of conspiracy to commit Food Stamp fraud. HAIDER and MUSAED own and operate Lucky 7, located at 253 Davenport Avenue in New Haven. Lucky 7 was registered as an authorized participant in the Food Stamp Program.

Today, United States District Judge Janet C. Hall sentenced MUSAED to four months of imprisonment, followed by three years of supervised release during which MUSAED must spend four months in home confinement. HAIDER was sentenced to three years of probation during which she must spend four months in home confinement.

The Food Stamp Program (FSP) is administered by the U.S. Department of Agriculture’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households, affording such households the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. FSP recipients purchase eligible food items at authorized retail food stores through the use of an EBT card, which is similar to an ATM card. FSP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as beer, cigarettes, paper goods, and soaps are not eligible for purchase with the FSP benefits, and it is a violation of the rules and regulations governing the FSP to allow benefits to be used to purchase ineligible items. Also, FSP benefits may not be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.

According to documents filed with the Court and statements made in court, from August 2005 through January 2007, HAIDER and MUSAED allowed FSP recipients to purchase ineligible items, including beer and cigarettes. They also allowed FSP benefits to be redeemed for a percentage of their cash value, and kept the balance of the cash for themselves.

During today’s court proceeding, Judge Hall ordered MUSAED and HAIDER to pay to the Government restitution in the total amount of $56,682.35.

This case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Henry Kopel.