Judicial Watch: USDA Dragging its Feet in War on Food Stamp Fraud

02/04/201909/21/2019 ~ Ann Corcoran ~ 11 Comments

Thanks to reader Diana for spotting this news at Judicial Watch which uses the shockingly awful Ohio food stamp fraud bust I reported, here in late January, to say that the feds are taking way too long and the penalties aren’t stiff enough to deter this massive fraud.

They cite the case of the Ohio father and son who ripped off US taxpayers for nearly $3 million and also polluted a local waterway with “bodily fluids” from an illegal halal slaughter business—a story that everyone should continue to send out on social media (use the JW post this time!).

Food Stamp Fraud on the Rise as Government Allows “Retailer Trafficking”

Weeks after a federal audit blasted the government for failing to curb rampant fraud in its multi-billion-dollar food stamp program, two Ohio men have been indicted for operating a $2.7 million scheme that spanned six years. One of the men, 59-year-old Amin Salem, is a convicted felon with a history of food stamp fraud yet the feds took six years to bust him and he remained a qualified food stamp retailer. The other man, Mohamed Salem, is his 32-year-old son and federal prosecutors say they operated a highly lucrative food stamp trafficking ring in the Cleveland area with the help of a buddy named Zahran al-Qadan.
[….]

Though this operation sticks out among others, Food stamp fraud has been pervasive for years and the alarming numbers have been well documented by the government. The USDA’s most recent figures show about $1.1 billion in food stamp fraud a year. Nearly 12% of retailers authorized by the government to accept food stamps engage in illegal practices, according to the agency. Judicial Watch has reported extensively on the rampant fraud in the program that costs American taxpayers a bewildering $64 billion annually to provide more than 20 million households with free food. Less than a year ago, nearly 200 people were arrested in Florida for operating a sophisticated ring in which 22,000 fraudulent food stamp transactions totaling $3.7 million were documented by a task force of local and federal authorities. In 2016 the feds busted the largest food stamp fraud operation in history, a $13 million enterprise run by flea market retailers in the largely black and Hispanic areas of south Florida’s Miami-Dade County known as Opa-Locka and Hialeah.
[….]
A USDA division called Food and Nutrition Services (FNS) is responsible for rooting out the type of fraud and corruption that continue plaguing the food stamp program.
“As of November 2018, FNS had not implemented this authority,” according to congressional investigators. “By failing to take timely action to strengthen penalties, FNS has not taken full advantage of an important tool for deterring trafficking.”

Go to JW here for the whole story and to follow links for more information.

Do you have a suspicious convenience store or small gas nation near you that accepts food stamps? Keep an eye on their activities. Some signs of a possible on-going fraud include large numbers of people going in and out every day with few purchases (if any!) when they come out. Also look for poorly, or nearly bare shelves as a sign that selling groceries is not a priority.

See this earlier post that includes information about the GAO study.

Ohio: Westlake "Man" Indicted in Multi-million Food Stamp Scam Involving Illegal Slaughterhouse

01/23/201909/21/2019 ~ Ann Corcoran ~ 9 Comments

The Westlake “man” (men) who is alleged to have ripped off US taxpayers for $2.7 million is a ‘new American’ from somewhere in the Middle East.

we accept snap — I hate to resort to photos like this one, but unfortunately it is rare to see a photo of the ‘new American’ fraudsters!

Of course none of the stories I’ve found mention the nationality (or immigration status) of the man and his son indicted by the US Justice Department yesterday in what may be the most egregious case of fraud I’ve seen in ten years of following these stories!
Rather than summarize the stunning news, here is the first half of the press release from US Attorneys Office of the Northern District of Ohio. (Emphasis is mine)

A Westlake man with a history of food stamp fraud was indicted on charges that he continued to illegally accept food stamps at seven Cleveland-area gas stations, laundered the profits, illegally had firearms, operated an unregulated slaughterhouse and polluted a stream by dumping animal blood and other fluids into it.
Amin M. Salem, 59, and Mohamed Salem, 32, were both indicted on one count each of conspiracy to launder money and one count of engaging in real estate transactions using laundered funds.

Papa Salem had previous convictions for food stamp fraud!

Amin Salem is additionally charged with one count of making unpermitted discharges into a waterway, one count of distribution of adulterated, misbranded or uninspected meat and one count of being a felon in possession of firearms. That charge stems from Amin Salem having an AR-15 rifle and a Savage 12-gauge shotgun, despite previous convictions for conspiracy to defraud the United States, food stamp fraud, mail fraud, and money laundering.
Mohamed Salem, also of Westlake and Amin’s son, is also charged with trafficking in counterfeit goods for his sale of counterfeit clothing and apparel.
Zahran al-Qadan, 55, of Cleveland, was indicted on one count of conspiracy to launder money.
Prosecutors are seeking to forfeit properties at 43588 Stang Road and 7250 West Ridge Road in Elyria owned by the Salems.
According to the six-count indictment:
Amin Salem secretly owned several area gas stations: Henry’s Marathon at 3106 Fulton Road; Gas Way at 10606 Bellaire Road; Turney Sunoco at 6009 Turney Road in Garfield Heights; Harvard Gas USA at 7020 Harvard Ave.; Bellaire Gas USA at 3934 West 117th Street; Rapid Stop at 1712 East 55th Street and Memphis Shell at 7210 Memphis Ave.
Mohamed Salem managed the gas station’s finances of behalf of his father. The gas stations had terminals to accept and process Electronic Benefits Transaction (EBT) cards as part of the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps.

Papa Salem was not permitted to own stores due to previous convictions, so Mohamed was running them!

The gas stations and the EBT terminals inside were in the names of Mohamed Salem or another person, since Amin Salem was prohibited from owning stores that processed EBT transactions because of previous convictions for food stamp fraud and related crimes.
The gas station terminals were used by the Salems to process more than $2.7 million in fraudulent SNAP transactions between 2010 and 2016.

The words halal slaughter are absent, but you know what this was all about!

black river — Blood and bodily fluids went in to Ohio’s Black River

Amin Salem slaughtered lambs and goats at his property on Stang Road in 2015 and 2016. He sold the meat, which was not inspected by the U.S. Department of Agriculture.
He also caused, without a permit, the discharge of blood and other bodily fluids from the slaughtered animals into Engle Ditch, which flows into the Black River and eventually Lake Erie.

There is actually much more in the US Attorney’s press release (click here).

joe cimperman — Joe Cimperman of Global Cleveland https://globalcleveland.org/about/staff/

One of yours Joe?
My first thought was to wonder where the ‘Welcoming Cleveland’ propagandists are about this ‘new American’ entrepreneur in their midst! (Westlake is a suburb of Cleveland).
Here is what Global Cleveland wants you to know:

“Immigrants strengthen our community in so many ways, and one of them is by opening businesses,” said Joe Cimperman, president of Global Cleveland, in a written statement. “These businesses do more than create jobs. They add vitality to our neighborhoods and become part of the cultural tapestry that makes Cleveland so special. They reflect our deepest DNA and remind us of the best of ourselves.”

What can you do? If you live in the Cleveland area send the DOJ press release to Global Cleveland and to everyone you know! If you live elsewhere, this story must get out to social media because the national big media never reports these stories!!!

Erie County, Ohio officials: Get your Food Stamp Money ASAP

01/22/201909/21/2019 ~ Ann Corcoran ~ 8 Comments

The Sandusky Register last week urged the 9,000 plus recipients of SNAP (food stamp) benefits to get their cards recharged soon as officials fear that money from the feds could be curtailed due to the shutdown and because many new people might be applying.
However, interesting to me in this story is a section at the end about alerting authorities if you see fraud.

snap fraud signs dc — SNAP Fraud alert posters appeared and disappeared quickly in the Washington. DC metro system last year!

You might recall the controversy in Washington, DC last spring when signs went up in the metro system alerting people about how to spot SNAP fraud. The DC government reacted quickly and had them removed “…apologizing to residents for sharing a message that is not a reflection of our values.” (See the story at Breitbart)
Here is a bit of the story from the Sandusky Register,

About 9,300 local recipients at risk of receiving food stamps

Erie County, officials distribute about $1 million monthly to the 9,300 recipients!

SANDUSKY — An ongoing partial federal government shutdown could open up a possibility in which thousands of Erie County residents won’t receive a monthly payment to purchase food.
Erie County Job and Family Services workers on Monday issued an alert to the 9,300 active Supplemental Nutrition Assistance Program local recipients about obtaining their February benefits as soon as Wednesday, two weeks earlier than normal. Officials and recipients often shorten the phrase to “SNAP,” referred to by others as “food stamps.”
Agencies nationwide want to release February’s SNAP benefits ahead of time so recipients can best prepare themselves and their dependents.
But why is this happening?
In short, only enough money exists to provide these users — many of which are guardians or custodians with multiple children and senior citizens on fixed incomes — their normal financial allotment placed on Electronic Benefit Transfer cards through February.
But, after that, there’s no guarantee the U.S. Department of Agriculture can keep funding this program, leaving agencies, such as Erie County Job and Family Services, hamstrung in helping out people. The shutdown has significantly scaled back department operations. Many of its workers, for instance, aren’t getting paid, and various services overseen by the department have been reduced or altogether stopped.

But then much to my surprise the article goes in to a discussion about SNAP fraud:

Figuring out food stamp fraud

Supplemental Nutrition Assistance Program , or SNAP, benefits can only be used for food and for plants and seeds to grow food for your household to eat. SNAP benefits cannot be used to buy:
• Any nonfood item, such as pet food; soaps, paper products, and household supplies; grooming items, toothpaste, and cosmetics
• Alcoholic beverages and tobacco
• Vitamins and medicines
• Any food that will be eaten in the store
• Hot foods
“If people see abuse, report it to us, and we will investigate if that person’s benefits are being sold or abused,” said Vicki Bayer, Erie County Job and Family Services’ deputy director of community services.

Of course the “sold” part refers to the massive fraud of trafficking in food stamps.

New GAO study!

A new GAO study was released last week outlining the amount of fraud and what the government needs to do to stop it.
If you don’t know how trafficking works they have a cool graphic to show you.
screenshot (842)
A summary begins with this:

Millions of households rely on the $64 billion Supplemental Nutrition Assistance Program, formerly known as food stamps, to buy food. But some stores are defrauding the program by “selling” cash instead of food. For example, a store might give a person $50 in exchange for $100 in benefits—then pocket the difference.
How widespread is this “retailer trafficking”? The Food and Nutrition Service (FNS) reports that $1 billion in benefits are trafficked annually. However, the real extent is uncertain and could be anywhere from $960 million to $4.7 billion.

Looking for something to do? Anyone who has been suspicious about a small grocery store, a gas station, or convenience store near you, should take the time to see what the GAO says and then consider turning the store in for investigation.

Endnote: As I build this website, I’ll be developing categories for your future reference. See my Food Stamp fraud category by clicking here.
For a more extensive catalog of Food Stamp fraud stories visit RRW, here.

Cleveland: Suit against Catholic Charities in boy's shocking death

01/20/201909/21/2019 ~ Ann Corcoran ~ 16 Comments

A social worker, employed through a contract with Catholic Charities of the Catholic Diocese of Cleveland was supposed to be checking on and protecting the nine children in the Rodriguez home, but instead she had cooked up a deal with the children’s mother to obtain the family’s food stamps.
catholic charities diocese of cleveland
In exchange she allegedly turned a blind eye to abuse and deplorable living conditions that resulted in the death of a five-year-old boy whose body was buried in the back yard.
The case became known to the police when someone called from PAKISTAN with a tip! WTH!
This is the latest news from Cleveland.com:

Estate of Cleveland boy found buried in back yard sues Catholic Charities

CLEVELAND, Ohio — The estate of a 5-year-old Cleveland boy whose body was found in late 2017 buried behind his mother’s house has filed a lawsuit against the social services arm of the Catholic Diocese of Cleveland that employed the worker who was supposed to keep tabs on the family.
The survivorship of Jordan Rodriguez filed the wrongful death lawsuit Tuesday in Cuyahoga County Common Pleas Court against Catholic Charities, its employee Nancy Caraballo, the boy’s mother Larissa Rodriguez and her boyfriend Christopher Rodriguez.

Nancy Caraballo

The suit accuses Catholic Charities and Caraballo of recklessness, negligence and failing to report abuse the boy suffered in the two years leading up to his death. The estate, administrated by Michelle Rodriguez, seeks to take the case before a jury.
“While we cannot at this time comment on what is alleged in the lawsuit, Catholic Charities protects and advocates for those who are most vulnerable,” the statement said. “All employees undergo thorough background checks and extensive training with regard to ethics and specifically their duties to report child abuse or neglect.”
Jordan’s body was discovered buried in the family’s backyard in December 2017, after Cleveland police received a call from Pakistan that said Christopher Rodriguez confessed to burying the child.
Investigators responding to the call found the home in deplorable condition, and it wasn’t long before they uncovered that Caraballo, a parent educator at an agency contracted with Catholic Charities who was assigned to the Rodriguez family, had been buying Larissa Rodriguez’s food stamps at discounted prices and lying in her reports of her visits.
Caraballo was supposed to conduct monthly home visits to check on Rodriguez’s children and living conditions and file a report each time. But investigators subpoenaed her cellphone records and compared text messages between Caraballo and Rodriguez to the reports and found that, on at least 12 occasions, Caraballo simply showed up to Rodriguez’s house to pick up the food stamp card. She filed false reports that said she inspected the home.

More here.
The case will make you sick!
In February Caraballo plead not guilty here.
Then here in April she was sentenced to 3 years for the food stamp fraud.
And, now get this, she reformed in jail and was out in six months, here.

As is usual there is no mention of the immigration status of either Caraballo or the Rodriquez duo.

But I am interested in why a call to police came from Pakistan. Were there Pakistani convenience store proprietors in on the food stamp fraud?

Alert: Beware of Medical Supply Phone Fraud

01/06/201909/21/2019 ~ Ann Corcoran ~ 3 Comments

Have you been getting calls that start with a recorded voice saying “Don’t hang up!”? The caller says he/she has important information about relieving chronic pain with neck, back or knee braces (that Medicare will pay for).

I get those and so I noticed this news story from Fruitland, Maryland ten days ago about how phone scammers clone a number (in this case they cloned the police department!) and use it to make their fraud calls.
Then I found a letter to the editor from a man in Wilson, NC who, although suspicious of the call, did talk with the ‘supplier’ of braces, and here is what he said,

I have received dozens of calls concerning braces for pain in my back, shoulders, etc., none of which is true! On those calls where I actually talked to the callers, I told them exactly that and apparently I was ignored. They told me it will cost me absolutely nothing and Medicare will pay for everything. I again told them no, I don’t need them, nor do I want them. They told me they would send them anyway and they would be absolutely free and Medicare would pay.
Guess what? On a recent Thursday, a package arrived from Trilogy Medical Supply of West Palm Beach, Florida. I refused acceptance and UPS took the unopened package back. Now the fun part!
I called Medicare and after speaking to three individuals, was told that this company had indeed billed Medicare more than $3,400 for something I neither wanted nor asked for and in fact refused. Medicare has opened an investigation into this and will refuse payment for my “pain relief braces!”

So, it appears that the feds were promptly paying out to Trilogy Medical Supply.* It is not clear if the letter-writer gave out his Medicare card number to the callers.
Check your Medicare statements when they come in and look for items you were billed for. One friend of mine said there were amounts of certain medications (for pain!) that were larger than she had received.
Yesterday a Better Business Bureau in Ohio published a list of the Top Seven phone fraud schemes they had been notified about in 2018.
See them all but especially #2: The Grandparents Scam!
Another of my friends reported that an elder family member fell for this one and actually drove out late at night to wire cash to the unknown caller!

*We have no idea who owns Trilogy Medical Supply (could be perfectly legit). But, as soon as the Department of Justice website is up and running again (after the shutdown), I’ll check if they show up there.