A Chicago grocery store owner has been handed a three-and-a-half-year federal prison sentence for fraudulently redeeming millions in benefits from the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). YOUSEF ABU ALHAWA, who ran a store in the Southwest Side’s Chicago Lawn neighborhood, gamed the system to redeem SNAP and WIC benefits for ineligible items or even cash, in some cases in behalf of stores not authorized to participate in the programs. According to a plea agreement cited by the Department of Justice, Alhawa caused losses of upward of $8.3 million from 2011 to 2019.
Alhawa, aged 50 from Lockport, Ill., admitted guilt to wire fraud and tax charges last year. His tax offenses, which included the filing of false income tax returns from 2015 through 2017, resulted in over $610,000 in federal and state tax losses. U.S. District Judge Steven C. Seeger ordered the restitution of $8.9 million to the U.S. Treasury, IRS, and State of Illinois, as per the announcement made on Wednesday.
In the prosecution’s sentencing memorandum, Assistant U.S. Attorney Paul Mower emphasized the gravity of the offense, noting, “Defendant’s offense conduct was serious." He elaborated, "SNAP is the nation’s largest federally funded nutrition assistance program. His actions not only deprived those programs of vital financial resources that could otherwise have been made available to deserving recipients, but also risked sowing general disfavor and distrust of government benefit systems.” This sentiment underlines the real victims of such schemes: the individuals who rely on these benefits for their daily sustenance.
The successful prosecution stemmed from coordination between federal authorities, including the office of Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Ramsey E. Covington of the IRS Criminal Investigation in Chicago, and Douglas S. DePodesta, who heads the Chicago Field Office of the FBI. The U.S. Department of Agriculture’s Office of Inspector General also contributed valuable assistance. This case sends a clear message of the serious consequences awaiting those who attempt to defraud government aid programs.
