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Posted on Sat, Sep 24, 2011 : 10:08 a.m.

Wall Street Journal: Owner-manager of Ypsilanti Township store fined $25,000 by feds for fraud

By Steve Pepple

The manager and co-owner of an Ypsilanti Township store who was sentenced to federal prison last year in a food stamp fraud scheme has been ordered to pay a $25,000 civil penalty by a U.S. Treasury Department agency, the Wall Street Journal reports.

Mohamed-Abas Sheikh, of Ann Arbor, was ordered on Friday by the Treasury Department’s Financial Crimes Enforcement Network to pay the money for not registering as a money transmitter under the Bank Secrecy Act, and for structuring transactions to avoid filing currency reports under the same law, the Journal reported.

Sheikh, who was the manager and part-owner of Abbas Phone Card and Grocery Inc,, violated federal law by structuring nine cash deposits worth $81,000 at a credit union between May 2008 and March 2009 to prevent the credit union from filing mandatory currency transaction reports, according to the Journal story.

Sheikh was sentenced in May 2010 in federal court to more than two years in prison for food-stamp fraud. He was among four workers at Abbas Phone Card & Grocery who were accused of giving cash to food-stamp recipients in exchange for taking larger amounts off their cards, investigators said.

The store also helped people turn food-stamp benefits into cash for transfer overseas. A federal indictment says the fraud exceeded $700,000.

Comments

Tru2Blu76

Tue, Oct 18, 2011 : 3:34 p.m.

I wonder if annarbor.com could investigate a bit more and find out if there are any "citizenship issues" in this case. Naturally, adult American citizens want to see some reforms in the way citizenship is handled and that includes the various categories of visas. I used to love the Neil Diamond song, "America," which has the lyric phrase, "They're coming to America" - but now the IRONY is too heavy. I hope no one gets onto the "welfare programs are the problem" schtick - these programs serve a serious, legitimate need for those Americans in unfortunate and desperate circumstances. Fix the "Crooked Person" problem and that solves most crimes like this one. Ypsilanti is the problem? Ypsi is attached to Ann Arbor like a siamese twin: when one twin is having problems, the answer to that is to call the doctor and for the other "twin" to do what he or she can to help the sick one.

Basic Bob

Mon, Sep 26, 2011 : 3:22 a.m.

I'm happy to see some recognition that Ann Arbor has its fair share of criminals. And here's some folks that shouldn't be eligible for food stamps: people who live overseas.

mb20fan

Sun, Sep 25, 2011 : 10:22 a.m.

Anyone know where this store was I`m guessing it`s closed now.

miradee4

Sun, Sep 25, 2011 : 11:23 p.m.

2279 Ellsworth Road

shepard145

Sun, Sep 25, 2011 : 2:38 a.m.

Is there a way to relocate Ypsilanti to another state? Almost every day there is another report of a Ypsilanti resident committing a crime - it's getting old. WHAT IS THE PROBLEM!? Pack up the entire city and move it to Ohio.

Edward R Murrow's Ghost

Sun, Sep 25, 2011 : 6:59 p.m.

Just another one of Shep's brilliant, fact-based, logical posts. Good Night and Good Luck

justthings

Sun, Sep 25, 2011 : 5:19 p.m.

Where does shepard145 live, no crime there!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Get a life!!!!!!!!!!!!!!!!!!!!!

Cash

Sun, Sep 25, 2011 : 10:03 a.m.

This is an Ann Arbor resident. Want Ann Arbor moved to Ohio?

RJA

Sat, Sep 24, 2011 : 3:21 p.m.

One has to be blind to think the people who recieve food stamps, don't take others grocery shopping to get their food, and then pay the person cash to get booze and drugs. (I've seen this happening for years). I haven't found anyone to take the time to check it out. How would grocery store owners know this is happening? (they don't) These criminals leave the store, put groceries away, then the cash transaction happens. (this is Fraud too)

tinkerbell

Sun, Sep 25, 2011 : 3:40 p.m.

If you read the article carefully, Mohamed-Abas Sheikh IS the co owner of the store.

DonBee

Sat, Sep 24, 2011 : 4:50 p.m.

I for one have turned in half a dozen people for doing just this in the last year. I suppose to some that makes me a meanie.

ffej440

Sat, Sep 24, 2011 : 3:49 p.m.

If you know of people doing this for years and have not turned them in, you are as bad as them. Try the DHS or MSP for starts.

rainbow

Sat, Sep 24, 2011 : 2:49 p.m.

I wonder what the penalty would have been had they done this same crime in the country/countries they were sending the money back to? Also, what would be done to an ARROGANT American conducting the same type of scamming of the system in those same countries. Sometimes it looks like we are the worlds stooge........

Cash

Sat, Sep 24, 2011 : 2:36 p.m.

Wall Street Journal headline: Ann Arbor Man To Pay Civil Penalty For Violating Bank Secrecy Act Ann Arbor.com headline: Owner-manager of Ypsilanti Township store fined $25,000 by feds for fraud Interesting, the Ann Arbor slant, isn't it?

Cash

Sat, Sep 24, 2011 : 5:43 p.m.

How often does WSJ write about Ann Arbor? How often does Ann Arbor.com write about Ypsi/Ann Arbor ? Remember the article recently about the successful business in Van Buren Township described as "Ann Arbor Area business"? Spin, spin, spin.

Michigan Reader

Sat, Sep 24, 2011 : 5:17 p.m.

My point, which wasn't clear, is that Ann Arbor got the worst of the publicity in this fraud story.

Michigan Reader

Sat, Sep 24, 2011 : 5:14 p.m.

The Wall Street Journal is a nationally distributed paper, and smears Ann Arbor. AnnArbor.com is local and smears Ypsilanti Township. AnnArbor.com is distributed world-wide (www.), but read mostly locally. The bias is noted.