Waterbury Store Operators Charged with Food Stamp Fraud: Report

NEW HAVEN, CT – Two Waterbury men have been arrested for their alleged involvement in federal food stamp fraud and other violations.

Tallat Mahmood, 63, and Raul Carlos Monarca, 40, were arrested on charges of federal food stamp fraud and illegally trafficking in food stamp benefits at a Waterbury store, according to a release. Tahir Shahzad, 32 of Harrison, N.Y., was also arrested.

Mahmood and Monarca were arrested on Aug. 18, while Shahzad surrendered to authorities Thursday afternoon. The three suspects worked at WB Trade Fair Grocery in Waterbury.

From Nov. 2014 until June 2016, they illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items, including cigarettes, glass pipes, bongs and hookahs. The suspects often charged a premium for these illegal transactions.

Officials estimated that WB Trade Fair Grocery could lawfully redeem at most between $120,000 to $240,000 per year in food stamp benefits. During this approximately 18-month period, food stamp redemption at the store totaled approximately $3.2 million.

Following their arrests, Mahmood and Shahzad were ordered to surrender their passports and released on bond, while Monarca was ordered detained. The suspects face up to five years in prison, a fine of up to $250,000 and full restitution to the government.

The federal food stamp program, also known as the Supplemental Nutrition and Assistance Program (SNAP), is administered by the U.S. Department of Agriculture’s Food and Nutrition Service. It utilizes federal tax dollars to provide low-income households with the ability to purchase food.

SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with food stamp benefits.

SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.