DEARBORN — Twenty seven people arrested by state police in February for alleged food card fraud all seem to be of Arab descent, judging by their names—all recognizable Arab family names.
But a spokesperson for Attorney General Mike Cox’s office said that doesn’t necessarily mean there is a problem specific to the Arab American community.
“Folks who commit crimes together usually have a common link,” said spokesman Matt Frendewey.
Sometimes that link, he said, is a common ethnicity. He compared it to biker gangs, often made up entirely of white males, who might commit crimes together.
“It would be very inaccurate to say that it speaks to the Arab American community.”
Frendewey said it was never even apparent to the attorney general’s office that that all those involved were Arab Americans until pointed out by The Arab American News.
The 27 suspects — owners and employees of eight Detroit party stores and gas stations — are accused of engaging in more than $1.5 million worth of illegal dealing in food card benefits.
The accusations include exchanges of cash for Bridge Cards—electronic debit cards that replaced government-issued food stamps in 2001.
Suspects would allegedly offer customers, for example, $50 for $100 cards, then collect the full amount from the state, making a profit at the expense of taxpayers.
Frendewey said that $55.2 million worth of fraudulent transactions take place every year in Michigan.
“When you rip off a government program, you’re taking away from people who deserve it,” he said.
Investigators utilized informants and undercover police officers who conducted fraudulent transactions with store owners and employees in which they would receive cash for food stamps while equipped with recording devices.
Frendewey insisted the sting was not an effort to go after the Arab American community, and that such surveillance operations are only conducted when it is brought to light that illegal activity is taking place by informants — who offer information when facing smaller charges — or through tips by other means.
Initial charges brought against the defendants included felonies of conducting an ongoing criminal enterprise, conspiracy and electronic benefit transfer card fraud. The charges could result in prison sentences of up to 20 years, in addition to restitution.
“It has been a problem from time to time, ” said Ed Deeb, president of the Michigan Food and Beverage Association and the Michigan Business and Professional Association.
He said the transition from stamps to cards was intended in part to curb the illegal transactions, but it hasn’t helped.
“It’s still the same,” he said.
Deeb said it’s often difficult for storeowners and employees to turn away customers desperate for cash who push for the exchange.
“It’s a problem across the country… If a recipient pressures you to take their card (in exchange for money) and they’re a good customer… if you do it, you’re at fault and you shouldn’t do that. ”
Frendewey said the group of suspects worked together as part of a ring.
Suspect Bassel Hachem, one of three employees of Van Dyke Petro arrested in the sting along with the gas station’s owner, said he knows nothing about the people arrested from other stores.
“That’s bull-(expletive),” he said about being described as part of a ring.
Hachem was outraged at how much money was said to have been involved.
“We’re broke like mother-(expletive). Where’s the money? There’s no money anywhere.”
He said the charges were too harsh and indicated that those arrested were enticed by undercover police to commit the crimes.
Hachem said he has a court date in April, but did not know much about the status of his charges, saying that he depended entirely on his lawyer, who could not be reached.
The attorney general’s office could not provide further details on the status of the charges against the other suspects.
One Dearborn market that accepts Bridge Cards makes it very clear to customers that they will not engage in illegal food benefit transactions, through a large sign hanging above its cash registers.
“Please follow the rules of the federal and state government food stamp programs. If you refuse to do so we will be forced not to accept your business,” reads the huge sign in English and Arabic at Joe and Ed’s on Schaefer Road.
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