A Minnesota grocery store owner faces up to 20 years in prison after authorities uncovered a massive food stamp fraud scheme that allegedly drained over $1.1 million in taxpayer funds through fraudulent EBT card purchases at major retailers.
The Scheme Uncovered
Hennepin County authorities charged a Minneapolis man with operating an elaborate fraud network involving stolen EBT cards. Investigators observed the suspect making large purchases at Costco using multiple benefit cards, then transporting goods directly to his retail store for resale. Surveillance footage and GPS tracking data confirmed the pattern. Many legitimate cardholders were either out of the country during the alleged transactions or denied ever shopping at the locations in question.
“Minnesota Police: ‘Abdidwahid Mohamed’ Spent $1M+ with Others’ EBT Cards at Costco, Resold Goods”
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SNAP Program Exploited
The Supplemental Nutrition Assistance Program provides food assistance to low-income households through Electronic Benefit Transfer cards that function like debit cards. According to the criminal complaint, the accused received $1,141,082 in EBT payments through fraudulent transactions. Prosecutors noted the operation involved a high degree of sophistication and planning, occurring over an extended period. The scheme represents just one example of widespread benefit fraud affecting multiple states.
Political Fallout and Reform Calls
Republican congressional candidate Dalia al-Aqidi, running against Representative Ilhan Omar in Minnesota’s 5th District, told reporters that Minneapolis earned its reputation as a fraud capital. She emphasized that working families who pay taxes ultimately bear the financial burden of such schemes. The candidate criticized state administrators from the local level up to Governor Tim Walz, arguing that years of talk about ending fraud have produced insufficient action.
Growing National Problem
Federal authorities have exposed similar SNAP fraud operations across multiple states. In February, four Venezuelan migrants in Massachusetts faced charges in a separate million-dollar, multi-state fraud scheme. U.S. Attorney Leah Foley revealed that food stamp fraud networks span at least six states and Puerto Rico, using stolen identities to defraud the federal program. The Trump administration has prioritized investigating and prosecuting these operations as part of broader efforts to combat benefit fraud nationwide.
