PROVIDENCE, R.I.
Sami Almuhtaseb, 45, of Smithfield, R.I., owner of Oasis Market, a convenience store located in Providence, plead guilty in federal court to defrauding the Supplemental Nutrition Assistance Program or SNAP of more than $1.1 million dollars, federal officials announced today.
During his plea hearing, Almuhtaseb admitted to the court on Friday that he allowed SNAP recipients to exchange food stamp benefits for cash, in return charging them a surcharge of 100% which he pocketed.
Sami Almuhtaseb pleaded guilty to conspiracy to commit Supplemental Nutrition Assistance Program fraud and to money laundering, according to officials.
According to information presented to the court, between November 2009 and December 2015, the defendant’s store redeemed $2.7 million in SNAP benefits. Over $1.2 million or 45% of the food stamp transactions were for transactions of $100 or more.
Over 72% of the SNAP transactions at the store were from transactions in excess of $50. Legitimate SNAP transactions at a convenience store rarely involve a transaction of $50 or more.
According to court documents, at least $1.1 million dollars worth of the SNAP funds received by Almuhtaseb were the result of fraudulent transactions.
These fraudulently obtained funds were deposited into two bank accounts controlled by Almuhtaseb. The defendant withdrew over $770,000 in cash or checks payable to himself from these two accounts, officials said.
An analysis of bank records revealed that the Almuhtaseb also withdrew over $40,000 of cash from one of the accounts at ATMs located at casinos.
U.S. District Court Chief Judge William E. Smith set sentencing for July 22.