SNAP Fraud Charges Filed Against Minnesota Grocer Who Allegedly Ran a $1.1 Million EBT Scheme

A Minneapolis grocery store owner is facing felony charges after investigators accused him of running a food assistance fraud scheme worth more than $1 million. Abdidwahid Mohamed, owner of Minnesota Food Grocery LLC near West Lake Street in Minneapolis, allegedly used other people’s EBT cards to stockpile goods from wholesale retailers, then resold the items at his own store.

What SNAP Is and How It Works

SNAP, the federal Supplemental Nutrition Assistance Program, is designed to help low-income households afford food. Benefits are loaded onto EBT cards that function like debit cards. Trafficking those benefits, which involves using them to purchase goods for resale, is a criminal offense. According to the Minnesota Judicial Branch, courts have seen 19 cases under this statute in the past five years.

The Alleged Scheme Spanned Five Months in 2021

According to criminal charges filed in Hennepin County Court, the alleged fraud took place between March 8 and August 10, 2021, a roughly five-month window. During that period, Mohamed is accused of receiving $1,141,082 in EBT payments. Prosecutors say the offense involved a high degree of sophistication or planning and unfolded over a lengthy stretch of time.

Investigators Say They Watched Him Make the Purchases

Law enforcement observed Mohamed making purchases at Sam’s Club and Costco, then tracked him returning directly to his store with the goods. Video surveillance and GPS data confirmed those trips. Investigators also noted that many of the EBT cardholders linked to the transactions were either out of the country at the time or denied ever shopping at those locations.

Walmart’s Fraud Team First Flagged the Suspicious Activity

The investigation traces back to Walmart’s Global Investigation Team, which flagged unusual EBT transactions at Sam’s Club and alerted the Minnesota Bureau of Criminal Apprehension in May 2021, according to FOX 9. From there, law enforcement began building a case, eventually executing search warrants and making an arrest later that summer.

Arrest Came at a Sam’s Club in Bloomington

On August 10, 2021, law enforcement executed search warrants at Mohamed’s store and vehicles. He was arrested at a Sam’s Club location in Bloomington with an EBT card in his possession and a handwritten note containing a PIN number. Investigators also interviewed more than two dozen EBT cardholders, many of whom said their cards had been lost or had never been used at the stores in question.

One Cardholder Admitted She Let Mohamed Use Her Card

Among those interviewed, one woman confirmed she had not paid for groceries at Minnesota Food Grocery in more than a year and a half, having agreed to let Mohamed use her EBT card. The charging document identified her by initials as F.F. Her account was one of several in which cardholders either said their cards were given away or reported them as lost or unused.

Mohamed’s First Court Appearance Is Scheduled for May 27

If convicted, Mohamed faces up to 20 years in prison or a $100,000 fine. His first court appearance is set for May 27. Defense attorney Peter Wold, who is not involved in the case, told KSTP that the nearly five-year gap between the alleged conduct and the charges could make it harder for Mohamed to locate witnesses and mount a defense, while noting that Mohamed is presumed innocent.

Hennepin County Attorney’s Office Calls the Alleged Theft Unacceptable

The Hennepin County Attorney’s Office said the case was submitted for charging consideration on April 30, 2026, and charges were filed on May 4. The office said SNAP is meant to help low-income Minnesotans put food on the table and that the alleged theft of those resources was deliberate and absolutely unacceptable, adding that prosecutors intend to seek recovery of the funds.

Federal Officials Say SNAP Fraud Enforcement Is Being Strengthened

The USDA said Secretary Brooke Rollins is committed to running nutrition programs with high integrity and respecting taxpayers. Among the measures being implemented are SNAP EBT chip cards, mobile payment pilots, updated fraud detection standards, EBT card locking, and blocking illegal point-of-sale devices at retail locations. The agency said its Food and Nutrition Service continues to work alongside the U.S. Secret Service and Department of Justice on fraud investigations nationwide.