Minnesota grocer charged in $1.1 million food stamp fraud scheme

Authorities in Minnesota filed criminal charges against Abdidwahid Mohamed, owner of Minnesota Food Grocery LLC, for a food stamp fraud scheme that cost taxpayers more than $1 million.

Mohamed allegedly used EBT cards registered to other people to buy items at Sam's Club and Costco in 2021. He then resold the goods at his store, according to Fox 9 Minneapolis.

Hennepin County authorities watched Mohamed make purchases and followed him back to his store with the items. Surveillance footage and GPS data confirmed the activity. Investigators found that many EBT cardholders were out of the country or said they never shopped at those stores.

SNAP, the federal program Mohamed is accused of abusing, gives food aid to low-income households through EBT cards that work like debit cards.

The complaint states Mohamed received $1,141,082 in EBT payments. It describes the scheme as involving a high degree of sophistication or planning and occurring over a lengthy period.

If convicted, Mohamed faces up to 20 years in prison and a $100,000 fine.

Dalia al-Aqidi, a Republican running for Congress in Minnesota's 5th Congressional District against Rep. Ilhan Omar, D-Minn., said, "Minneapolis didn't become America's fraud capital by accident. It was earned. This week, it's a grocer charged with running up $1.1 million in charges on other people's EBT cards. Next week, it will be something else, but the bill always lands on the Minnesotans who actually pay taxes."

Al-Aqidi said families tell her affordability keeps them up at night. "The cruel joke is that the money is here to really make a difference for people. It is just lining the wrong pockets and paying for luxury cars and houses on the other side of the world. The fraudsters are only half the story. The other half are the people administering these programs, from the front lines all the way up to Ilhan Omar, Attorney General Keith Ellison, and Governor Tim Walz. There has been talk about ending fraud in Minnesota for years. I am going to Washington to actually do it."

State Sen. Mark Koran, a Republican, called the case another example of why Minnesota attracts fraudsters. "The sheer volume of welfare programs, combined with the inability of state agencies to detect obvious fraud is alarming. Once again, it was a private retailer, not the state, that uncovered this fraud scheme," he said, noting Walmart's Global Investigation Team first flagged the suspect.

Koran added, "All individuals involved, including the people that sold their EBT cards to Abdi Mohamed, have to be fully prosecuted. People who come here to steal from hardworking Minnesota taxpayers deserve serious consequences."

State Sen. Michael Holmstrom, a Republican, told Fox News Digital, "This may be the laziest one yet. We had this guy, Abdi Mohamed, and he named his scam company 'Minnesota Food Grocery LLC.' They aren’t even trying, because they have been conditioned to believe there are no consequences."

Fox News Digital sought comment from Gov. Tim Walz's office.

The charges come during a major fraud scandal in Minnesota's social services programs, especially in the Somali community, in recent months. The Trump administration has stepped up efforts against food stamp fraud.