Eight men who ran four area food markets are accused of abusing federal food programs for the needy at a cost to taxpayers of more than $1.5 million, newly unsealed charges allege.
Federal officials announced the indictments and arrests yesterday, though six of the eight men were indicted on Jan. 10 and arrested Friday.
The indictments say that the owners and managers of two stores on the North Side and two on the West Side allowed their customers to use food stamps and WIC vouchers illegally. They permitted, authorities say, the exchange of the stamps and vouchers for cash and allowed people to use them to buy prepaid international phone cards and to pay off personal loans.
In some cases, the money also was laundered through U.S. bank accounts and wasn’t disclosed on tax returns, said IRS spokesman Craig Casserly.
All eight of the men indicted are Somali immigrants who were in the country legally but are not U.S. citizens.
The stores involved included City Dollar Store, 3350 Cleveland Ave.; Ohio Grocery and Halal Meats, 2815 Cleveland Ave.; Marwaas Market, 4181 W. Broad St.; and Muna Market, 3770 W. Broad St. All of the stores catered to the Somali community, said Fred Alverson, spokesman for the U.S. district attorney’s office.
All four stores closed during the investigations; three have since reopened under new ownership.
The Marwaas Market location now operates as the Margherita Market. The Ohio Grocery and Halal Meats location is now the Salama Market. City Dollar’s new owner uses the same name.
During the investigation, undercover officers went into the stores and were given money for food stamps, the charges state.
The indictments do not clarify if the person was given an equal amount in cash, or whether the store charged a fee for the transaction.
The indictments show that the stores had a high percentage of food-stamp transactions.
For example, City Dollar Store showed it had $1.8 million in tax-exempt sales from January 2003 to August 2006. During that same time, the store claimed twice that amount -- $3.4 million -- in food stamp purchases.
Those arrested are: Khalif Mohamed Abukar, whose age is unknown; Zeidi Said Omar, 44; Saidi Kadi Sheikuna, 36; Ali Ahmed Said, 36; Abdulhakim Said Abukar, 35; and Shuceeb Geedi, 50.
Their addresses weren’t available and none could be reached for comment. The six named have been allowed to remain free as their cases go through court.
Two others charged, whose names weren’t released, remain at large.
Dispatch Reporter Matthew Marx contributed to this report.
Source: Columbus Dispatch, Jan 28, 2009