Hamtramck Grocery Accused Of Food Stamp Fraud

HAMTRAMCK (WWJ/AP) – Federal authorities became suspicious: How could a small Hamtramck grocery ring up nearly $1 million in food-aid redemptions in just six months?

The government is accusing the Modhubon Grocery of fraud. The U.S. Attorney’s Office this week filed a lawsuit to seize thousands of dollars from bank accounts.

Authorities believe the grocery is giving cash to food-aid recipients in exchange for a larger swipe of their state-issued Bridge Card, an electronic-benefits card, a common fraud scheme. Stores that let customers use food cards are reimbursed by the U.S. Agriculture Department.

Owners of the Modhubon Grocery could not be reached for comment. The government says similar stores in the area average only $82,000 in food stamp redemptions a year.

TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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