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Large Food Stamp Scam Busted At Florida Convenience Store

Large Food Stamp Scam Busted
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A pair of convenience store owners in Florida have been busted for allegedly conducting a large food stamp scam and using taxpayer money to stock their own shelves.

Police say Bassam Sale Abu Diab, 55, and his son, Matthew Bassam Abu Diab, 22, bought EBT cards at deeply discounted prices from customers and then turned around and used those credits to buy goods for their shop, 4M Food Mart in Daytona Beach, Fla., the Daytona-Beach News Journal reports.

The father-and-son team bought the cards from sellers desperate for hard cash for between 20 and 40 cents on the dollar. According to News Journal, the duo would pay $200, for example, for an EBT card loaded with $500 in credits. Then they used the cards to buy goods at Walmart and Save-A-Lot stores as a way to cheaply supply their own store.

On Monday, after a three-month investigation, the two men were arrested and state and federal agents raided the business. The Diabs allegedly made at least $88,000 through EBT transactions at the store, according to the News Journal. The elder Diab was previously charged in December with illegally running a pawn shop from the store.

“This guy is running a business on the taxpayers' back,” Daytona Beach Police Chief Michael Chitwood told Daytona local news station WFTV Channel 9. “It’s a fraud. He’s unscrupulous and clearly he didn’t learn from the last time we hit the store.”

Food stamp fraud is not a new racket. According to the U.S. Department of Agriculture, which oversees the EBT program, nearly 1,400 stores were involved in illegally exchanging food stamp cards for cash last year.

The government is cracking down on benefits fraud and has recently signed data-sharing agreements with several states, including Ohio, to track and halt the abuse of government-subsidized benefits.

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Before You Go

9 Companies That Really Love Food Stamps
PepsiCo(01 of09)
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PepsiCo lobbied the House of Representatives in 2011 on restrictions on SNAP, according to a June 2012 report, called "Food Stamps: Follow the Money." The company spent $750,000 lobbying Congress overall during the third quarter of 2011. At the same time, Pepsi donated money to anti-hunger groups working to fight health restrictions on SNAP. (credit:AP)
Kraft(02 of09)
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Food stamp users "are a big part of our audience," Kraft's incoming CEO recently told the Financial Times. He said he opposes cuts to funding for the food stamp program. (credit:AP)
Walmart(03 of09)
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Walmart stores in Oklahoma brought in more than $500 million in food stamp money between June 2009 and March 2011, the Tulsa World reports. During that period retailers in the state took home $1.2 billion in food stamp purchases overall. (credit:AP)
Coca-Cola(04 of09)
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Coca-Cola lobbied Congress on SNAP in 2011, according to a June 2012 report, "Food Stamps: Follow the Money." The soda-maker also lobbied against an early 2012 bill in Florida that would have enhanced the list of items food stamp users could buy with their benefits. (credit:AP)
Yum Brands(05 of09)
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Yum Brands tried to convince lawmakers last year to allow the company to accept food stamps in its restaurants, which include Taco Bell, KFC and Pizza Hut, according to the Financial Times. (credit:AP)
JPMorgan Chase(06 of09)
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JPMorgan Chase holds the contracts for Electronic Benefits Transfer or EBT -- which distributes food stamps electronically -- in half of states, according to the June 2012 report, "Food Stamps: Follow the Money." In Florida, JPMorgan's contract is worth $83 million over five years, and in New York, it's worth more than $112 million over 7 years. The bank also lobbied the USDA on EBT issues in 2011, according to the report. (credit:AP)
Big Lots(07 of09)
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Big Lots is testing accepting food stamps in large part because so many of the company's target customers use the program. CEO Steve Fishman told analysts in an August conference call, "There is no debating that a growing percentage of our consumer base is economically stressed and becoming more dependant on government assistance," according to Columbus Business First. (credit:Getty)
Cargill(08 of09)
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The food and agriculture producer lobbied Congress and the USDA in 2011 over SNAP, according to a June 2012 report called "Food Stamps: Follow the Money." The company also donated money to anti-hunger groups that oppose health-oriented changes to SNAP. (credit:AP)
Kroger(09 of09)
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The grocery store chain lobbied Congress on SNAP and WIC funding in 2011, according to a June 2012 report, called "Food Stamps: Follow the Money." Kroger is one of the many leading food retailers that benefits from food stamp expansions, according to the report. (credit:AP)
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