Hamtramck Grocery Accused of Food Stamp Fraud

By: Associated Press
By: 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.

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  • by Cap'n Rita Location: Lansing on Feb 8, 2013 at 06:24 AM
    @Name:I agree with you, but it will never fly since these entitled fools will scream they are being discriminated against or unfairly singled out. Their "rights" are far more protected than the money that's paying for it.
  • by Name Location: Location on Feb 6, 2013 at 12:54 PM
    @Cap'n Rita:This is why there should be lists of "Qualified Foods" that is actually enforced. To enforce this, people who use EBT must pay for their groceries first and then submit the receipt to their county for reimbursement. The state would then be able to deny certain items.
  • by Cap'n Rita Location: Lansing on Feb 5, 2013 at 09:24 PM
    @Name: it isn't just South Lansing. It is nothing short of scandalous what these folks are buying on Taxpayers' dime. I was behind a guy who bought $30 worth of boxed Valentine candy!!! One especially rude guy comes in almost every day and buys ice cream novelties and gives the cashier an earful if they don't have what he wants in stock. Chips, cookies and pop fly out of this store w/EBT that I spend my hard EARNED money in.
  • by Name Location: Location on Feb 4, 2013 at 05:34 AM
    Drive through South Lansing. "We Accept EBT" written in huge letters or posted in windows of a ton of shops that sell prepared foods. I didn't think you could use the bridge card for food the was already prepared.
  • by Anonymous on Feb 3, 2013 at 04:59 AM
    Welcome to detroit.
  • by Tex Location: Texas on Feb 2, 2013 at 06:08 PM
    Another fraud everyone should be aware of is the Amway Tool Scam. Google "Stop The Amway Tool Scam Wordpress" for more information, and forward this information to every non-Distributor/IBO you know, so they don't get ripped off.
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