Feds Charge Shelby Couple in Food Stamp Trafficking Ring

A Shelby Township couple who owns a party store in Detroit face several felony charges in connection with a fraudulent food stamp trafficking ring.

Sara Shango, 24, and her husband, Rouni Abdul-Ahad, 29, owners of Randy’s Market, along with Omar Sami, 20, of Troy, were arraigned Monday in 36th District Court Monday before Chief Magistrate Millicent D. Sherman. All three will return to district court on April 15 for a preliminary examination.

All three were charged with conspiracy to conduct a criminal enterprise—racketeering, which is punishable by up to 20 years in prison and/or a $100,000 fine. Abdul-Ahad faces additional charges of conspiracy and food stamp trafficking.

The business, Randy’s Market, which is located on Mount Elliott Street, was charged with two offenses.

"Michigan families are working harder than ever for every tax dollar," Michigan Attorney General Bill Schuette said in a press release. "Today's charges should send the message that we will not stand by while tax dollars are being stolen."

An investigation was launched in 2009, after federal authorities at the U.S. Department of Agriculture noticed Randy’s Market did 365 percent more than the average monthly volume of comparable stores.

Undercover officers and informants, using video and audio footage, recorded 44 fraudulent EBT transactions at Randy’s Market between October 2009 and October 2010.

The buyer would receive cash from store employees in exchange for food stamp benefits. The buyer would then purchase goods that are not covered by their benefits such as cigarettes, alcohol and magazines, and also ask for cash back.

In exchange for the goods and cash, employees at Randy's Market charged the benefit card an inflated amount and kept an amount for themselves above and beyond the recipient's request. 

Schuette said one example of the fraudulent transactions was when an agent asked store employees for $25 in cash and to purchase a pack of cigarettes, while store employees charged the benefit card $50 for the transaction, pocketing the extra $25. 

Federal authorities said the estimated amount of food stamp fraud attributed to the owner and employees of Randy's Market exceeds $112,234.

According to estimates by the Michigan Department of Human Services, Office of Inspector General, about 4 percent of all food stamp transactions are fraudulent.  About $115 million in food stamp benefits are spent every month in Michigan, which means $4.6 million in fraudulent transactions take place every month in Michigan (or $55.2 million per year).