Food stamp fraud case expands

By Charles Sercombe
The federal government continues to crack down on food stamp fraud in Hamtramck.
Recently, the Justice Department announced that a Hamtramck market owner has pleaded guilty to illegally pocketing $1.8 million from the food stamp program.
Syed Ali, 42, has agreed to pay that amount back and will be sentenced on June 25. He could face up to 10 years in prison and a $250,000 fine.
The investigation into the matter was conducted by the IRS and the US Agriculture Department.
According to prosecutors, Ali, the owner of Modhubon Grocery, which has no business license registered with the city, would allow food stamp recipients to swap their benefit for cash in exchange for giving Ali a cut.
That has been the alleged motive for six other Hamtramck market owners who were arrested last September following a raid by federal authorities.
Some 11 people were charged with defrauding the government of a total of $12.5 million in a period of two months.
A spokesperson for the Justice Department in Detroit said those individuals have not yet gone to trial and there is a possibility of a plea deal being worked out.