Wayne Couple Admits Role In $4M Food Stamps Scheme

WAYNE, NJ — A Wayne husband and wife admitted today they ran a $4 million food stamp fraud scheme.

Ibrahim Zughbi, 65, and his wife, Miriam Zughbi, 61, pleaded guilty to benefit from fraud and money laundering in Newark federal court, U.S. Attorney Craig Carpenito announced.

Miriam Zughbi also pleaded guilty to conspiracy to defraud the United States through the Supplemental Nutrition Assistance Program (SNAP) benefit fraud, Carpenito said.

Related: Wayne Couple Exchanged More Than $4M In Food Stamp Scheme: Cops

The couple managed Jamaica Meat Market in Paterson from January 2014 to January 2018. The store accepted SNAP benefits from customers, which cannot be exchanged for cash, only food.

The Zughbis exchanged more than $4.5 million in SNAP benefits for cash between 2014 and 2018, Carpenito said.

Ibrahim Zughbi hid the scam from authorities by writing inflated checks from the store's bank account containing the fraudulent proceeds to a supplier, and then received the money back in cash, Carpenito said. He also wrote checks to family members with no connection to the store, he said.

Authorities used a confidential source who made 16 purchases at the Jamaica Meat Market, Carpenito said.

Ibrahim Zughbi and Miriam Zughbi each face up to 40 years in federal prison and a $500,000 fine, or twice the gain or loss from the scam.

Miriam Zughbi also faces a possible five-year sentence, and a $250,000 fine, or twice the gain or loss from the scam, on the conspiracy charge.

Sentencing is scheduled for July 17.

Email: daniel.hubbard@patch.com