Somerset Man Arrested on Food Stamp Fraud Charges

With the help of four search warrants, officials from the Essex County Prosecutor’s Office, U.S. Department of Agriculture Inspector General’s Office and Homeland Security Investigations arrested a Somerset County man on alleged money laundering, theft by deception and food stamp fraud charges Tuesday, the acting county prosecutor’s office said.

Muhammed Farooq, 49, of Somerset was arrested following an eight-month food stamp fraud investigation involving approximately $5.2 million worth of alleged fraudulent electronic food stamp transactions at four Dollar Stores owned by Farooq, acting Essex County Prosecutor Carolyn A. Murray said.

Investigators say Farooq, who is from Pakistan, would allow food stamp patrons to purchase non-food items such as electronics.

“The food stamp program is designed to help people in need,” Deputy Chief Assistant Prosecutor Walter Dirkin, director of the ECPO Financial Crimes Unit said, “Any allegation of an abuse of the program will be investigated by this office.’’

Warrants were executed at Dollar Stores located at 729 Broad St. in Newark; 771 Broad St. in Newark, 829 S. Orange Ave. in East Orange and 119 Broad St. in Elizabeth, Murray said.

A search warrant was also executed at Farooq’s home in Somerset, where he was arrested. During the searches, more than $150,000 in cash was recovered, along with six computers, electronic food stamp machines and business records, according to Assistant Prosecutor Dirkin.

Farooq was processed and taken to the Essex County Correctional Facility in

Newark, where Superior Court Judge Joseph Cassini, III set bail at $250,000.

Farooq is next scheduled to appear in court on May 22.

An investigation is continuing.

Anyone with information is urged to contact Det. James Ventola of the ECPO Financial Crimes Unit at (973) 266-7223.

— Staff reports