A Minnesota man faces up to 20 years in prison after authorities uncovered a sophisticated food stamp fraud scheme that siphoned over $1.1 million in taxpayer funds through stolen EBT cards, reselling goods purchased at Costco in his own store.
How the Scheme Worked
Hennepin County authorities charged Abdidwahid Mohamed with orchestrating a complex operation involving stolen Electronic Benefits Transfer cards. Investigators followed Mohamed from Costco stores back to his retail location, documenting purchases made with cards belonging to individuals who were either out of the country or claimed they never shopped at those locations. Surveillance footage and GPS tracking data confirmed the pattern, according to the criminal complaint.
“Minnesota Police: ‘Abdidwahid Mohamed’ Spent $1M+ with Others’ EBT Cards at Costco, Resold Goods”
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The complaint details that Mohamed accumulated $1,141,082 in EBT payments over an extended period. Prosecutors describe the operation as involving a high degree of planning and sophistication. The federal Supplemental Nutrition Assistance Program provides food assistance to low-income households through cards that function like debit cards, making them vulnerable to theft and misuse.
Political Fallout in Minneapolis
Republican congressional candidate Dalia al-Aqidi, challenging Representative Ilhan Omar in Minnesota’s 5th District, pointed to the case as evidence of systemic failures. She told Fox News Digital that Minneapolis earned its reputation as America’s fraud capital through lax oversight. Al-Aqidi criticized state and local officials, including Governor Tim Walz and Attorney General Keith Ellison, for inadequate responses to welfare fraud. She emphasized that families cite affordability as their primary concern while fraudulent schemes divert money meant for vulnerable populations.
Part of a Broader Pattern
The Minnesota case represents one of numerous food stamp fraud prosecutions nationwide. Last February, four Venezuelan migrants in Massachusetts faced charges in a separate million-dollar, multi-state SNAP fraud scheme. Federal prosecutors revealed these operations span at least six states and Puerto Rico, utilizing stolen identities to defraud the assistance program. The Trump administration has prioritized cracking down on such schemes as part of broader efforts to eliminate welfare fraud and ensure benefits reach intended recipients rather than criminals exploiting the system.