On July 6, a guy who ran a grocery store in Alabama and was accused of defrauding the government of over $5 million entered a guilty plea.
In a news release on July 7, the U.S. Attorney’s Office for the Northern District of Alabama stated that by manipulating the federally sponsored, nationwide food stamp program from 2014 to 2017, the accused allegedly emptied the Birmingham store’s bank account of more than $3.7 million.
The U.S. Department of Agriculture states that lower-income families are eligible for benefits from the Supplemental Nutrition Assistance Program “so they can purchase healthy food and move towards self-sufficiency.”
Omar Motley, a 42-year-old resident of Birmingham who ran the Big B Food Mart, must pay back more than $4.6 million to the IRS and the USDA after admitting guilt to counts of wire fraud and tax fraud, the attorney’s office said.
According to a news release, Motley owes the IRS nearly $850,000 and the USDA nearly $3.8 million after being charged in March 2021.
obtaining food stamps
According to court records, as manager of Big B Food Mart, Motley had access to the store’s bank account and could manage it independently.
He also did not pay taxes, which would have provided additional assistance to our residents.
According to the USDA, lower-income families are eligible for Supplemental Nutrition Assistance Program benefits “so they can purchase healthy food and move toward self-sufficiency.”
The assistant special agent in charge of the IRS-Criminal Investigation’s statement read: “Motley diverted cash from the program to eventually benefit himself.”
On July 8, McClatchy News contacted Motley’s lawyer inquiring about a statement and was awaiting a response.
After being charged in March 2021, Motley owes the IRS close to $850,000 and the USDA more than $3.8 million, according to a news release.
stealing food stamps
In his capacity as manager of Big B Food Mart, Motley had access to the store’s bank account and could administer it independently, according to court records.
Furthermore, he didn’t pay taxes, which would have provided additional assistance to our residents.
Because it participates in the SNAP program, the grocery store is able to “sell some eligible food goods in exchange for food stamp benefits,” according to the prosecution.
The USDA funds “the corresponding payments of the SNAP benefit transactions to the authorized” retailer when a consumer uses their food stamp benefits with an electronic benefit transfer card, which is comparable to a debit card, according to court records.
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In this instance, according to the attorney’s office, the program’s benefits redemption payments went to Big B Food Mart’s bank account, and Motley “took advantage” of that, Fontanette claimed.
The U.S. Attorney’s Office for the Northern District of Alabama stated in a news release on July 7 that the accused allegedly emptied the Birmingham store’s bank account of more than $3.7 million by manipulating the federally sponsored, nationwide food stamp programme from 2014 to 2017.
The report claims that from November 2014 to March 2017, Motley would illegitimately exchange “EBT SNAP benefits for cash and ineligible products.”
