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Store Owners Plead Guilty to Structuring and Food Stamp Fraud
The joint investigation among several federal and local law enforcement officials was initiated as the result of a SAR filing. In February 2002, three (3) brothers pled guilty to fraudulently selling food stamps out of their convenience store. The scam netted nearly $2 million. The brothers also wire transferred $228,000 of their illegal profits to five (5) foreign nationals in the Middle East-transactions that are still under investigation by federal agents. The brothers sold food stamps and vouchers for the Women, Infant and Children (WIC) program for 50 cents on the dollar. The defendants redeemed the stamps through the store’s bank accounts for full face value and routinely cashed checks written for slightly less than $10,000.
(Source: IRS/Criminal Investigation)
[Published in The SAR Activity Review – Trends, Tips & Issues, Issue 4, August 2002]