Two Cranston Men Charged in EBT Fraud Sting

Two Cranston men are facing federal charges of conspiracy to defraud the United States, money laundering, wire fraud and other crimes after a two-year investigation into food stamp fraud at their Providence convenience stores.

Mustafa Al Kabouni, 52; and Mohamad Eid Al Kabouni, 22, both of Cranston, are two of six people indicted after the investigation by the United States Attorney's Office and other federal agencies that concluded the men routinely exchanged Supplemental Nutrition Assistance Program benefits for cash in violations of the SNAP program's rules.

In exchange for the illegal cash handouts, the suspects allegedly would pocket an amount that was usually the same as the payout to the person with the SNAP card.

United States Attorney Peter Neronha announced that over the past two years, a pattern of alleged conspiracies and SNAP benefits abuse was revealed when federal law enforcement undercover investigators visited area convenience stores; examined thousands of documents, bank records and tax filings; and reviewed information and evidence seized during the execution of court authorized search warrants at several businesses on April 1, 2013.

Among the individuals named in federal grand jury indictments returned on Wednesday, and in informations and plea agreements filed with the U.S. District Court on Wednesday, are owners, managers and/or employees of the Corner Store, Regency Mart, Stop & Go, Dugout and Cristina’s Market, all located in Providence.

In addition to the ongoing criminal investigation and resulting criminal charges announced today, over the past two years the USDA Food and Nutrition Service, administrators of SNAP, permanently disqualified 37 Rhode Island retailers from participating in the food stamp program and sanctioned 15 others for violating the program's laws and regulations. Violations ranged from allowing the purchase of unauthorized merchandise to trafficking cash.

 “The conduct alleged in the charging documents removed a tremendous amount of money from the food stamp benefit program that could otherwise go to feed a hungry adult or a hungry child," said United States Attorney Peter Neronha. "Such conduct on the part of some food stamp recipients is plainly improper, and subject to administrative action.  Such alleged conduct on the part of retailers, motivated only by greed, is outrageous, and warrants the full attention of this Office and our law enforcement partners.”

Here's a breakdown of all charged:

Charged by way of Indictment

Mustafa Al Kabouni, 52
Cranston, RI 
Counts 1, 3, 5, 8-30

Mohamad Barbour, 53
North Providence, RI
Counts 1, 5, 11, 13

Mohamad Amir Al Kabouni, 43
North Providence, RI
Counts 1-4, 6, 9, 10, 12, 14

Mohamad Eid Al Kabouni, 22
Cranston, RI
Counts 1, 6, 7, 14-16

Count I: Conspiracy to defraud the United States 
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release

Counts II, III, IV, V, VI, VII:  SNAP benefit fraud - $100 or more
Max Penalties:  5 years imprisonment; $250,000 fine; 3 years supervised release

Count VIII:  SNAP benefit fraud - $5,000 or more.
Max Penalties: 20 years imprisonment; $250,000 fine; 3 years supervised release

Counts IX-XVI:  Wire fraud
Max Penalties:  20 years imprisonment; $250,000 fine; 3 years supervised release

Counts XVII-XXII:  Money laundering
Max Penalties:  20 years imprisonment; $500,000 fine; 3 years supervised release

Counts XXIII-XXX:  Structuring
Max Penalties:  5 years imprisonment; $250,000 fine; 3 years supervised release

Charged by way of Indictment

Amir Rasheed, 33
Flushing, NY
Counts 1-22

Karuna Mehta, 43
North Smithfield
Counts 1-8

Count I: Conspiracy to defraud the United States 
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release

Counts II, III, IV, V, VI, VII:  SNAP benefit fraud - $100 or more
Max Penalties:  5 years imprisonment; $250,000 fine; 3 years supervised release

Counts XVIII-XXII:  Money laundering
Max Penalties:  20 years imprisonment; $500,000 fine; 3 years supervised release