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Hamtramck Grocery Accused of Food Stamp Fraud

Posted: 5:31 PM Feb 2, 2013
Reporter: Associated Press

HAMTRAMCK, Mich. (AP) -- Federal authorities became suspicious: How could a small Hamtramck grocery ring up nearly $1 million in food-aid redemptions in just six months?

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. Stores that let customers use food cards are reimbursed by the U.S. Agriculture Department.

Owners of the Modhubon Grocery could not be reached for comment. The government says similar stores in the area average only $82,000 in food stamp redemptions a year.