A husband and wife from Dearborn, Mich., carried out a multi-level layered fraud scheme when they deceived the Federal Government by fraudulently collecting $60,000 in food stamp benefits, declaring a false bankruptcy, and lying to the Internal Revenue Service (IRS). (Sounds like they made the decision to go big AND go to the Big House all in one fell swoop. I predict this decision will not go well for the couple.)
Abraham Elsaghir, 52, and his wife, Samar Elsaghir, 51, started off their ruse by filing a voluntary Chapter 7 petition in bankruptcy in May 2017. By August of the same year, the couple received a discharge of their debts. (It’s important to note that the Elsaghirs falsified their bankruptcy report by failing to report and underreporting their income.)
Around the same time, the deceptive duo also made false statements to the IRS regarding their 2016 tax return and the U.S. Department of Agriculture (USDA) so they could illegally receive Supplemental Nutrition Assistance Program (SNAP) or food stamp benefits.
It turns out that between 2014 to 2020, the Elsaghirs received approximately $60,000 in food stamps they were not entitled to receive. And for the years 2014 – 2018, the couple neglected to pay $70,000 in taxes. (Not exactly a small sum.)
Abraham Elsaghir pleaded guilty to one count of false statement to an agency of the United States, one count of federal income tax evasion, and one count of bankruptcy fraud. Samar Elsaghir pleaded guilty to the same charges, with the exception of bankruptcy fraud. When sentenced, each defendant faces a maximum of five years in prison. Abraham Elsaghir also agreed to pay more than $166,000 to unsecured creditors in the bankruptcy case. (They can only hope they’ll be able to share a prison cell. Good luck with that request.)
Today’s Fraud of the Day comes from an article, “Couple wrongly receives $60K in food stamps, declares false bankruptcy,” published on mlive.com on February 24, 2022.
DETROIT – A husband and wife have pleaded guilty to federal charges related to a fraud scheme that included wrongly receiving food assistance, a false bankruptcy and lying to the IRS, officials said.
Abraham Elsaghir, 52, of Dearborn, pleaded guilty to one count of false statement to an agency of the United States, one count of federal income tax evasion, and one count of bankruptcy fraud, according to a news release from the U.S. Department of Justice. Samar Elsaghir, 51, of Dearborn, pleaded guilty to one count of false statement to an agency of the United States and one count of federal income tax evasion. They both pleaded before Judge Laurie J. Michelson, of the U.S. District Court for the Eastern District of Michigan.