LANSING — Attorney General Bill Schuette Tuesday announced nine felony charges against three Detroit party store employees resulting from a joint Michigan State Police and U.S. Department of Agriculture Office of Inspector General (USDA-OIA) investigation into fraudulent food stamp trafficking totaling more than $100,000.
“Michigan families are working harder than ever for every tax dollar,” said Schuette. “Today’s charges should send the message that we will not stand by while tax dollars are being stolen.”
The joint investigation began after federal authorities at the U.S. Department of Agriculture discovered a suspicious number of food stamp transactions at Randy’s Market, a party store located in Detroit.
Throughout the investigation, confidential informants and undercover police officers equipped with devices for recording video and/or audio footage conducted transactions in which they would receive cash from store employees in exchange for food stamp benefits.
Undercover informants would purchase goods not covered by their benefits, including cigarettes, alcohol and magazines, and also ask for cash back.
Between October 2009 and October 2010, employees of Randy’s Market conducted approximately 44 fraudulent EBT transactions with undercover agents.
In exchange for the goods and cash, employees at Randy’s Market charged the benefit card an inflated amount and kept an amount for themselves above and beyond the recipient’s request.
One example of the fraudulent transactions was an agent asking store employees for $25 in cash and to purchase a pack of cigarettes, while store employees charged the benefit card $50 for the transaction, pocketing the extra $25.
The Attorney General has charged the following:
• Sara Shango, 24, of Shelby Township (owner of Randy’s Market):  One count of Conspiracy to Conduct a Criminal Enterprise (Racketeering), felony punishable by up to 20 years in prison and/or $100,000 fine.
• Rouni Abdul-Ahad, 29, of Shelby Township (husband of Sara Shango):  One count of Conducting a Criminal Enterprise (Racketeering) a felony punishable by up to 20 years in prison and/or $100,000 fine; one count of Conspiracy to Conduct a Criminal Enterprise a felony punishable by up to 20 years in prison and/or $100,000 fine; and one count Food Stamp Trafficking, a felony punishable by up to 10 years in prison and/or $250,000 fine.
• Omar Sami, 20, of Troy: One count of Conducting a Criminal Enterprise (Racketeering) a felony punishable by up to 20 years in prison and/or $100,000 fine; one count of Conspiracy to Conduct a Criminal Enterprise a felony punishable by up to 20 years in prison and/or $100,000 fine; and one count Food Stamp Trafficking, a felony punishable by up to ten years in prison and/or $250,000 fine.
• Randy’s Market:  One count of Conducting a Criminal Enterprise (Racketeering) a felony punishable by up to 20 years in prison and/or $100,000 fine; and one count Food Stamp Trafficking, a felony punishable by up to 10 years in prison and/or $250,000 fine.
A review of food stamp transaction data from August 2009 through December 2010 revealed that similar neighboring stores disclosed an average cumulative monthly amount of food stamp transactions of $2,482 per store.
The monthly food stamp transactions at Randy’s Market during the same period averaged $9,084, or more than 365 percent more than the average monthly volume of comparable stores.
Based on food stamp transactions in excess of comparable store averages from August 2009 through December 2010 ($6,602), the estimated amount of food stamp fraud attributed to the owner and employees of Randy’s Market exceeds $112,234.
Michigan Department of Human Services, Office of Inspector General, conservatively estimates that about 4 percent of all food stamp transactions are fraudulent; $115 million in food stamp benefits are spent every month in Michigan.
This means approximately $4.6 million in fraudulent transactions take place every month in Michigan (or $55.2 million per year).
Wayne County alone accounts for slightly less than one third of the state’s food stamp transactions, which translates into an estimated $16 million of food stamp fraud per year.
All three defendants were arraigned in 36th District Court April 4 before Chief Magistrate Millicent D. Sherman.
The defendants are due in 36th District Court for a preliminary examination on April 15.
A criminal charge is merely an accusation and the defendant is presumed innocent until proven guilty.