Refugee Resettlement Watch

Gary,Indiana massive food stamp fraud arrest, Mohammad coefficient 100%

Posted by Ann Corcoran on March 8, 2013

Update March 23rd:  The Mohammad family indicted, here.

Can you believe it!  There are three Mohammads  in this latest food stamp fraud arrest!  The names sound Somali, but I’m just guessing—the media rarely tells us an immigrant criminal’s ethnicity!   If readers from Indiana learn more, please let us know!

And, get this—they shipped the money out of the country!  Surprise (not!).

I wonder if these businesses got their starts with government-funded micro-loans!  How else are twenty-somethings owning stores.

From the Chicago Sun-Times:

Two Gary, Ind., food marts let people use their food stamps like a normal debit card, giving them cash back and cigarettes in exchange.

In return, they illegally redeemed those food stamps to the federal government for more than $500,000, according to two federal indictments filed Thursday in the U.S. District Court in Hammond.

Now Ola Mohammad, 31, and her brother Abdkdar Mohammad, 29, both of Chicago, face one count of conspiracy to defraud the U.S. government and three counts of wire fraud.

Kaled Mohammad, 27, of Cicero, Ill., faces two counts of wire fraud in a separate but similar case. It was unclear Friday if he is related to Ola and Abdkdar Mohammad.

Court records say Ola Mohammad used her store, Moses Foods, at 1330 Broadway, to allow customers to purchase cigarettes and receive money back through their food stamps.

For instance, on Nov. 22, one customer bought a bag of Cheetos, a 2-liter bottle soda and a pack of cigarettes, and received $40 back in cash, all paid for from a food stamps card. The siblings redeemed the food stamps from the federal government for $4,735,850 through the illegal scheme, according to the indictment.

The money was sent to a bank account that both Ola Mohammad and her father could access, then was wired outside the country.

Although Ola Mohammad is the sole owner of the business, her brother assisted her and works there as a cashier. The indictment claims the scheme lasted from February 2010 to June.

Abdkdar was arrested Thursday and ordered held without bond pending a detention hearing and arraignment set for Monday afternoon. Court records did not show if Ola Mohammad has been arrested.

In a separate case, an indictment claims Kaled Mohammad conducted a similar but smaller scheme at his store, Kay Mart, at 4845 Broadway.

As with Moses Mart, Kaled Mohammad allowed customers to use their food stamp card to purchase cigarettes and receive cash back. The indictment claims he redeemed those food stamps from the federal government for about $60,000.

Kaled Mohammad was also arrested Monday and ordered held without bond pending a detention hearing and arraignment set for Monday afternoon.

Gary is only 30 miles from Chicago so these must all be Illinois immigrant spillovers involved.  BTW, Food stamp use among refugees is up sharply, here.

For more on cases like this one, type ‘food stamp fraud’ into our search function and dozens of stories will appear!

Addendum:  I almost forgot, two years ago this month there was another food stamp fraud bust involving another immigrant-run store in Gary (here).  I wondered then why these scammers don’t get the message from busts going on around them.

9 Responses to “Gary,Indiana massive food stamp fraud arrest, Mohammad coefficient 100%”

  1. […] Here we have the Mohammad family of Gary, Indiana who were arrested earlier this month and indicted on Thursday for ripping off the US taxpayer for nearly $500,000.   The Mohammads sent some of your money to an unidentified country. […]

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  2. […] […]

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  3. Gunny G said

    Reblogged this on AMERICAN BLOGGER: GUNNY.G ~ WEBLOG.EMAIL.

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  4. genomega1 said

    Reblogged this on News You May Have Missed and commented:
    Gary,Indiana massive food stamp fraud arrest, Mohammad coefficient 100%

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  5. admin said

    Surprise, surprise. It’s welfare Jihad.

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  6. admin said

    Reblogged this on .

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  7. Will these crooks be shipped out of the country and the stores closed and inventory sold to pay back the federal gov? or will they get a slap on the hand and given another store? These people don’t care about the tax payers who pay the bill. The government should be helping the American citizens who have no jobs, losing their homes and this is more stress on our economy.
    There should be a freeze on visa’s, refugees, asylum and illegals. We are swamped with illegals in my area, south CA. government is not doing anything about the abuse of Welfare, S.S. and Medicaid. Cut off the money to the agencies who bring the refugees here. They are not screening them.
    another issue with illegals is “when they have a baby here it is a citizen and can get Welfare right away”. We need a birth right law to stop this abuse.

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    • mjazzguitar said

      They definitely have to eliminate the “anchor baby” law.
      I don’t know of any other country that makes you a citizen just because you were born there when your mother is a foreigner.

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      • mjazzguitar said

        I know this is tangential to the food stamp story, but it relates in general to immigration reform. I just read that Egyptian President Morsi, who was educated in the US, and has referred to Jews as “apes and pigs”, had two children when he was here, who are now American citizens. Wonder if they’ll take after their dad?

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