Federal authorities became suspicious... The government is accusing the Modhubon Grocery of fraud. The U.S. attorney's office this week filed a lawsuit to seize thousands of dollars from bank accounts. Authorities believe the grocery is giving cash to food-aid recipients in exchange for a larger swipe of their electronic-benefits card, a common fraud scheme.In street talk; an EBT card owner would come into the store, buy a $1.50 bag of Cheetos, but the owner/clerk would punch in $10, and give the rest back to the customer in change. Whereby the customer turns around and buys some smokes or a $7.95 bottle of Thunderbird or MD 20/20. Rather clever actually. EBT: No worries; the taxpayer's got ya covered!
Monday, February 11, 2013
More "cash for swipe" EBT fraud at convenience stores; this time in Michigan
Curiously named "Modhubon" Grocery Store right next to Dearborn From Eric Dondero: How could it be, anti-Food Stamp fraud investigators wondered? Local convenience stores in the metro-Detroit area averaged around $82,000 a year in EBT reimbursements. But this one particularly store, located in Hamtramck had a Bonanza of swipers, over $1.2 million in EBT reimbursements. From WILX radio news, "Hamtramck Grocery Accused of Food Stamp Fraud" Feb. 8: