Feds indict grocery owner for fraud

GRAND RAPIDS, Mich. (WOOD) - The owner of a Grand Rapids phone card-and-grocery store was federally indicted Thursday for fraudulently redeeming food stamps, then sending at least some of the money to Somalia.

Between May 2006 and November 2009, federal authorities allege, Ahmed Isse Sheikh Mohamed defrauded the Bridge Card program of more than $474,000. Investigators said his store, the Rayan Phone Card and Grocery, redeemed about $11,550 each month in food stamp benefits.

In their complaint, federal authorities wrote, "The fact that supposed benefit redemptions actually exceed total sales of the store sugggests that a significant portion (if not all) of the stores business revenue is derived from fraud."

Mohamed admitted to investigators he falsified information on his food stamp redemption application, and also admitted he and his son, Isse, allowed the benefits to be used on ineligible items such as cash, phone cards or cologne.

It is alleged he included a commission for himself on each transaction. It's believed he also sent some of the redeemed money from his personal benefits to Somalia.