http://minnesota.cbslocal.com/2011/05/18/st-paul-store-owner-indicted-for-fo
od-stamp-fraud/

 

St. Paul Store Owner Indicted For Food Stamp Fraud

May 18, 2011 8:41 PM 

 
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MINNEAPOLIS (WCCO) - The owner of a St. Paul market was indicted in
Minneapolis Federal Court Wednesday for trafficking about $3 million in food
stamps, according to court documents.

Khaffak Sahib Ansari, 45 of Arden Hills, was charged Wednesday with three
counts of food stamp fraud in connection with the crime. Ansari had owned
the Stryker Avenue Market in St. Paul.

The indictment alleges that between January 2006 and Oct. 7, 2010, Ansari
exchanged food stamps for money and ineligible merchandise.

The USDA authorized his market to accept food stamps in 1998, and Ansari
told authorities that he attended retailer orientation and understood the
rules behind food stamps. Every person who receives food stamps gets an
electronic card which contains monthly allocated funds that can be used at
authorized stores.

The USDA reimburses stores for that money, but only if it's used to buy
eligible items. Those do not include alcohol, tobacco and cell phone
products. Food stamps also cannot be redeemed for cash.

Inspectors began investigating the Stryker Avenue Market in 2008. It was
discovered that on several occasions, Ansari allegedly exchanged food stamps
for cash and ineligible items. One count in the indictment alleges that on
July 16, 2008, Ansari swiped a food stamps card for $401, and gave the
person back $200 in cash.

Court documents also listed that between 2004 and 2009, the average food
stamp redemption for a store of similar size was just less than $324,000.
Stryker's redemptions during that time period came out to about $3.1
million.

If convicted, Ansari faces a maximum penalty of five years in prison.

 



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