Owner, Employee of New Haven Store Plead Guilty to Food Stamp Fraud

Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, today announced that NADIA ALI HAIDER, 29, and ABDUL HAKIM MUSAED, 44, both of Hamden, pleaded guilty yesterday, January 22, before United States District Judge Janet C. Hall in Bridgeport to one count of conspiracy to commit Food Stamp fraud. HAIDER owns and operates Lucky 7, located at 253 Davenport Avenue in New Haven, and MUSAED was employed by the store. Lucky 7 was registered as an authorized participant in the Food Stamp Program.

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.

The Government believes that the total amount of the fraud committed at Lucky 7 is approximately $94,000.

Sentencing has been scheduled for April 10, 2009, at which time HAIDER and MUSAED each face a maximum term of imprisonment of five years and a fine of up to $250,000.

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