Wayne Couple Sentenced In $4.5 Million Food Stamps Fraud Scheme

WAYNE, NJ — A Wayne couple will serve prison time for a food stamps fraud scheme that they operated out of their Paterson grocery store from 2014 to 2018, the U.S. Attorney's Office in New Jersey said.

Ibrahim Zughbi, 67, was sentenced to 41 months in prison, and his wife, Miriam Zughbi, 63, was sentenced to 24 months in prison.

Officials said the couple, who owned Paterson's Jamaica Meat Market, exchanged food stamps — now Supplemental Nutrition Assistance Program (SNAP) benefits — for cash, defrauding the program of more than $4.5 million. In addition to their prison terms, the Zughbi's were ordered to pay back $4.66 million in restitution.

According to court documents, the couple owned and worked at the grocery store from 2014 to 2018, and were authorized to accept SNAP benefits. Retail food stores may sell food in exchange for SNAP benefits, but it's illegal to exchange those benefits for cash.

Law enforcement agents became suspicious of the store due to the "high volume of SNAP benefits redemptions" there, but also used a confidential source to make 16 "purchases" at the store, where both Ibrahim and Miriam Zughbi exchanged cash for SNAP benefits, authorities said.

Ibrahim Zughbi would then write "inflated checks" from the meat market account to a supplier, who would then deliver the money back, authorities said. Zughbi also wrote checks to family members, who officials said had no ties to the business.

The U.S. Attorney added that Ibrahim Zughbi had been disqualified from SNAP in March 2011 after Neighborhood Supermarket, a store that operated out of the same location as Jamaica Meat Market, was charged with SNAP violations.

So how'd the new store get back into the program?

"Another individual took over the business, changed its name to Jamaica Meat Market, and certified in writing to the USDA that Ibrahim Zughbi would have nothing to do with the business or its participation in the program. Ibrahim Zughbi continued to run Jamaica Meat Market, and he and his wife continued to exchange cash for SNAP benefits," authorities said.

Ibrahim Zughbi previously pleaded guilty to Supplemental Nutrition Assistance Program (SNAP) benefit fraud and money laundering. Miriam Zughbi previously pleaded guilty to conspiracy to defraud the United States through SNAP benefit fraud, authorities said.

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