Hatem Fariz, 33, charged in Florida with having ties to a terrorist organization pleaded guilty Friday to processing more than $1.4 million in phony food stamp transactions at a grocery store he once owned. He faces up to 20 years in prison on each count and a fine of up to twice the value of the transactions when he is sentenced Aug. 18.
Prosecutors say Fariz and his employees defrauded the federal food stamp program by trading cash for food stamp benefits credited to the store he owned in Chicago. The transactions would be rung up with specialized debit cards used by food stamp recipients to buy groceries, but the cardholders instead received cash payments for lesser amounts, according to the plea agreement. Fariz also acknowledged processing transactions for other businesses not authorized to take food stamps.
Fariz, who now lives in Spring Hill, Fla., is also charged in an unrelated federal case there in which prosecutors allege he supported and raised money for a terrorist group. |