Food Stamp Fraud in Clearwater

Maybe it’s just a sign of the nation’s current economic woes but it seems that the Tampa Bay newspapers report more government fraud cases every week. This week, a Clearwater convenience store clerk pleaded guilty in U.S. District Court in Tampa to charges of food stamp fraud.

Naushad Shahabuddin ran the Quick Check Food Mart in Clearwater. He was accused of buying hundreds of thousands of dollars of food stamps from store customers at a discount. Twenty-seven of his former customers have also been arrested in the scheme.

In pleading guilty, Shahabuddin admitted to unlawfully buying $390,000 in food stamps from customers at less than their face value. Customers would take their card into the store and receive cash instead of making a transaction for food. Sometimes the customers would receive as little as 50 cents on the dollar.

It is a violation of federal law to spend food stamp benefits on anything but food or seeds to grow food.

Federal agents raided the store on July 8, 2008. The investigation into the scheme was a joint effort by the United States Department of Agriculture, the Florida Department of Law Enforcement, and the U.S. Secret Service. Investigators have stated that, in addition to the 27 customers already arrested, there could be more arrests in the case.

The federal fraud charges against Shahabuddin carry a penalty of up to 25 years in prison. Shahabuddin and his St. Petersburg federal criminal defense attorney were able to reach a plea agreement with the U.S. Attorney’s office. Sentencing will be held at a later date.