The owner of four dollar stores in Essex and Union counties has been charged with money laundering and other crimes after investigators determined more than $5 million in fraudulent food stamp transactions took place at his stores, authorities said today.
Muhammed Farooq, 49, of Somerset, was charged with money laundering, theft by deception and food stamp fraud when he was arrested today, Acting Essex County Prosecutor Carolyn Murray said.
“The Food Stamp program is designed to help people in need,” said Essex County Deputy Chief Assistant Prosecutor Walter Dirkin, director of the county’s financial crimes unit. Any allegation of an abuse of the program will be investigated by this office.”
According to Murray, Farooq was allowing patrons to buy non-food items, such as electronics, with food stamps. He owns two stores in Newark, and one each in East Orange and Elizabeth, Murray said.
The purchases totaled roughly $5.2 million and went on for nearly 2 1/2 years, Murray said.
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