OAKLAND, CA. – A federal jury convicted an Alameda family on Wednesday of food stamp fraud, U.S. Attorney Stephanie M. Hinds announced Thursday.
Ali Mugalli Hassan, 32, and Mugalli Ahmed Hassan, 50, father and son, allegedly used the government’s food stamp program to make fraudulent transactions.
Hassan owned and operated a convenience store on International Boulevard in Oakland, and members of his family served as cashiers at the store.
The store was an authorized USDA Supplemental Nutrition Assistance Program (SNAP) provider and conducted a high volume of transactions, including redeeming more than $2.3 million in benefits between 2014 and 2017, the stores said. Prosecutors.
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Evidence presented at trial showed that the defendants billed customers’ electric benefits transaction cards for purchases when customers received few or no qualifying products.
Prosecutors said the defendants kept half the value of fraudulent transactions and returned the rest in cash to customers.
As part of the scheme, the defendants kept the cards and used the federal benefits assigned to those cards at other stores to purchase items to sell at their convenience store.
Prior to trial, Mugalli Ahmed Hassan pleaded guilty to nine counts of wire fraud.
Both men are due to be sentenced on December 8.
Another family member, identified as Ahmed Ahmed Hasan Dharahan, 41, of Oakland, is a co-defendant in the case, and his case is still pending.