Food Stamp Fraudster Sentenced: US Attorney

PROVIDENCE, RI — Sami Almuhtaseb, 46, of Providence, ran the Oasis Market in Providence. He also ran a $1.1 million food stamp fraud, according to the U.S. Attorney's office. According to court documents, between November 2009 and December 2015, his store redeemed $2,755,125 in SNAP benefits. The numbers didn't add up, the U.S. Attorney said.

"More than $1,259,320, or 45 percent of the food stamp transactions, were for transactions of $100 or more" U.S. Atty. Stephen G. Dambruch's office said. "Over 72 percent of the SNAP transactions at the store were from transactions in excess of $50. Legitimate SNAP transactions at a convenience store rarely involve a transaction of $50 or more."

A probe (conducted by the U.S. Attorney's Office, the Department of Agriculture Office of Inspector General and the FBI) followed the money. The investigators determined that "at least $1.1 million dollars of SNAP funds received by Almuhtaseb were the result of fraudulent transactions. These fraudulently obtained funds were deposited into bank accounts controlled by Almuhtaseb, from which the defendant withdrew over $770,000 in cash or checks payable to himself."

He used the money for gambling, real estate and other personal expenses, Dambruch's office said. "The FBI analysis showed that among the expenditures, Almuhtaseb used nearly $200,000 of fraudulently gained funds at casinos, paid over $160,000 in mortgages, and used at least $35,000 for entertainment, credit card bills and shopping.

"Earlier, he admitted to masterminding a scheme to defraud the Supplemental Nutrition Assistance Program (SNAP)." Under the plea deal, the penalty the court initially imposed was five years' probation and 730 days of "intermittent confinement" at the Wyatt Detention Center, so he would not lose his business. But, as it turns out, Almuhtaseb gave up the business before the sentencing last October. He failed to disclose the change "to the court, U.S. Probation or the United States Attorney’s Office at sentencing."

So, the government asked the court to revoke the deal and give him 31 months in federal prison.

Besides the 31 months, he will be on 3 years probation after he leaves prison. He also must pay restitution to SNAP in the amount of $1,188,729. Almuhtaseb pleaded guilty on April 15, 2016, to conspiracy to commit Supplemental Nutrition Assistance Program fraud and money laundering.

The U.S. Sentencing Guideline range revised to reflect the defendant’s obstruction of justice in this matter is 37- 46 months imprisonment. The government recommended a sentence of 37 months imprisonment.

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