An Ohio grocery store owner is facing serious fraud charges after allegedly swindling a Missouri grocery chain out of millions. The U.S. Attorney's Office for the Eastern District of Missouri has slapped Muhammad Babar Chaudhry, 46, with four counts of wire fraud, accusing him of a scheme involving more than $15 million in inventory from the unnamed victim company.
Beginning over four years ago, Chaudhry's company, Sunshine Stores LLC, was within a licensing agreement with the Missouri chain to supply 38 of his stores. However, according to the indictment dated July 23, Chaudhry had no intention of settling his massive grocery bill, having placed orders totaling exactly $7.6 million in March of 2023, followed by another $7.5 million the next month. The indictment alleges that he directed an employee to mislead the chain about his whereabouts and the status of payments, including claims that he was out of the country and blaming "fraudulent activity" for the non-payment.
In what appears to be a concerted effort to avoid payment, the indictment claims Chaudhry intentionally emptied his bank accounts to escape withdrawals from the victim company. Furthermore, he is accused of falsely representing that he was arranging wire payments. The gravity of the situation is underscored by additional allegations of physical sabotage; a motion seeking Chaudhry's pre-trial detention notes he allegedly stole copper from a store, causing an estimated $1 million in damages, and had concrete poured into the sinks and drains of the victim company's grocery stores.
Chaudhry was arrested in Detroit on a Wednesday night and, by Friday, had been ordered to remain in jail until his trial, according to court records. If convicted of the wire fraud charges, he could face up to 20 years in prison, a $250,000 fine, or both. While the charges are only allegations at this point and Chaudhry is presumed innocent, Assistant U.S. Attorney Derek Wiseman is leading the prosecution. The case stems from an FBI-led investigation. The indictment is still in its early stages, with updates expected as the case progresses toward trial.
