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  • 26
    Feb
    2013
    3:48am, EST

    Grocer gets 2.5-year sentence for $844,000 food stamp fraud

    By Amanda Bonafiglia, NBCChicago.com

    An Illinois grocer was sentenced to two-and-a-half years in federal prison Monday for defrauding government and nutrition programs.

    Khaled Saleh, 48, the owner of Sunset Food Market in Waukegan was charged with illegally exchanging cash with customers using food stamp cards and nutrition coupons during an undercover investigation.

    Saleh was sentenced to 30 months in prison by U.S. District Judge Charles Norgle.

    Saleh, along with his wife, Fatima Saleh, 37, acquired more than $844,000 by paying customers approximately half the value in cash for goods purchased at other stores using their benefits.

    They then re-sold the same items in their store at a substantially higher price.

    During the investigation, an agent with the U.S. Department of Agriculture, Office of Inspector General, exchanged food stamp benefits for cash and used benefits to purchase formula at a discount store, which he then re-sold for half the price in cash to the Salehs on several occasions.

    Read more from NBCChicago.com

    The couple was arrested in May 2011 and both pleaded guilty last August to conspiracy to defraud government programs.

    The government forfeited $391,616 in cash and bank account funds that were seized from the Salehs, and Khaled Saleh was ordered to pay $453,013 in restitution for the remaining balance.

    Sentencing for Fatima Saleh has been postponed to March 22.

    884 comments

    Welcome to the American dream. This happens much more than people think. I know when I lived in Los Angeles it was a common practice for people ( not all of course ) to trade food stamps for booze and drugs or sell what they bought for cash. Glad this POS was caught and I hope that they can figure o …

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    Explore related topics: illinois, food-stamps, featured, waukegan, grocer, nbcchicago, khaled-saleh
  • 26
    Sep
    2012
    6:55pm, EDT

    Woman says she was mocked for using food stamps at grocery store

    Al Behrman / AP file

    A customer walks down the bread and pastry aisle at a Kroger Co. supermarket, March 1, 2011.

    By NBC News staff

    A store manager for Kroger, America’s largest grocery chain, has been transferred to a different store after a Georgia woman accused him of mocking her for using food stamps.


    Follow @NBCNewsUS

    Cindy Nerger said last week that a manager and two store employees at a Kroger grocery store in Warner Robbins, Ga., told her that her purchases weren’t covered by food stamps. The manager later acknowledged that all of the items in Nerger’s cart were covered by them, and Nerger stressed that she had been right all along. The manager then reportedly responded, “Well excuse me that I work for a living and don’t rely on food stamps like you,” Nerger told local news outlet 13WMAZ.


    Nerger said she spends 12 hours a day on dialysis and has been waiting for a kidney transplant for years. That’s why, she said, she relies on food stamps to feed her family.

    Stay informed with the latest headlines; sign up for our newsletter

    Humiliated and driven to tears by the incident, Nerger said she issued a complaint through the store’s national customer service line. The store responded by apologizing and offering her a $15 gift card, which she turned down because she said she doesn’t plan on returning to Kroger stores.

    Still, it seems, Kroger is intent on keeping Nerger’s business.

    In a statement, Kroger spokesman Glynn Jenkins said that the company decided to transfer the co-manager in question to another location after an internal investigation. “We wish the customer well and hope she will consider making Kroger her destination to shop in the future,” the statement concluded.

    Watch the most-viewed videos on NBCNews.com 

    When told about the manager’s transfer, Nerger said it wasn’t good enough and suggested he “should have been demoted to cashier so he can learn who is really on food stamps,” she told 13WMAZ.

    Jenkins said workers at the implicated Kroger store will be retrained to prevent any similar incident, 13WMAZ reported.

    Food stamp use has increased by nearly 51 percent since October 2008, and a record 46.7 million Americans used food stamps in June, according to a Department of Agriculture report released earlier this month. 

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    324 comments

    I think this one story speaks to many untold stories like this that happen on a daily basis in this country. The manager in this particular situation does not set a good example for his employees and he sends a message that it is okay to do this to a person whom he knows nothing of their circumstanc …

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    Explore related topics: georgia, food-stamps, kroger
  • 17
    Apr
    2012
    12:50pm, EDT

    Michigan lottery winner charged with welfare fraud

    A Michigan lottery winner has been charged with two counts of welfare fraud after collecting food stamps and using public medical assistance despite having won more than $700,000. If convicted of the two felony charges, Amanda Clayton, 25, could face up to four years in prison. WDIV-TV's Steve Garagiola reports.

    Michigan Lottery / Detroit News via AP

    Amanda Clayton holds her $1 million lottery check. The state says Clayton, who continued to get food stamps, has been removed from the program.

    By Jeff Black, Staff Writer, NBC News

    A Michigan woman who hit a $1 million lottery jackpot but kept getting food stamps pleaded not guilty on Tuesday to welfare fraud, NBC station WDIV-TV in Detroit reported.

    Michigan Attorney General Bill Schuette earlier on Tuesday had announced two felony charges against Amanda Clayton, 25, of Lincoln Park.


    Clayton was arrested Monday. On Tuesday she entered the plea in Lincoln Park’s 25th District Court.


    Follow @msnbc_us

    Her defense lawyer, Stanley Wise, told WDIV that he hopes to get the charges dismissed at Clayton’s next court hearing, which is scheduled for April 24.

    Read the full story on WDIV-TV's website 

    The charges are punishable by up to four years in prison, The Associated Press reported.

    After winning the lottery last fall, Clayton decided to pick a $700,000 lump sum payment, before taxes.

    The situation was revealed when WDIV interviewed Clayton, who said she thought it might be acceptable to continue using food stamps because she wasn’t working.

    "I thought that they would cut me off, but since they didn't, I thought maybe it was okay because I'm not working," Clayton told WDIV at the time.  

    In March, Michigan’s Department of Human Services took Clayton off the food stamp program.

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    587 comments

    Greedy little idiot.

    Show more
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  • 8
    Mar
    2012
    12:27pm, EST

    Michigan: No food stamps for $1 million lotto winner

    By msnbc.com staff and news services

    LINCOLN PARK, Mich. – State officials say a Detroit-area woman who won a $1 million lottery prize last year but continued to get food stamps has been removed from the food assistance program.

    The Michigan Department of Human Services on Wednesday said Amanda Clayton, 24, no longer was getting $200 in monthly benefits. The department’s decision followed a report this week from WDIV-TV, an NBC News station in Detroit, in which Clayton acknowledged continuing to get monthly food aid after her September win.

    "I thought that they would cut me off, but since they didn't I thought maybe it was OK because I'm not working," Clayton told WDIV. "I feel that it's OK because I have no income, and I have bills to pay. I have two houses."

    Her mother, Euline Clayton, told The Detroit News she didn’t believe her daughter broke any law. She said that after taking a lump sum payout of $700,00 and after taxes, her daughter received $500,000. She used that money, the mother said, to buy a new house and a car.

    "I'm not saying it's the right thing to do," Euline Clayton said of her daughter's use of food stamps. "But it's nobody's business if she's not breaking the law."

    Legislation at the state level would require lottery and other gambling winnings to factor into eligibility for government food assistance programs. The legislation comes after a Bay County, Mich., man last spring said he continued using food stamps despite winning a $2 million lottery prize in 2010.

    The Associated Press contributed to this report.

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    1067 comments

    I can't believe there wasn't a law against this. The level of entitlement in some people these days is astounding. It makes me sick.

    Show more
    Explore related topics: lottery, food-stamps, winner
  • 8
    Dec
    2011
    10:40pm, EST

    Second child shot by mother in welfare office standoff dies

    By The Associated Press

    McALLEN, Texas -- Authorities say a 10-year-old boy shot by his mother during a standoff at a Texas welfare office has died.

    Laredo police spokesman Joe Baeza says Timothy Grimmer died Thursday at a San Antonio hospital. His 12-year-old sister died of her wounds on Wednesday.

    Police say their mother, Rachelle Grimmer, shot the children and then killed herself Monday following a standoff with police at a welfare office where they had been denied food stamps.

    Also on this case:

  • 'May die 2day,' girl Facebooks before mom kills her
  • The Texas Department of Health and Human Services says the agency rejected Rachelle Grimmer's application because she didn't submit enough information.

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    © 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    179 comments

    May those babies rest in peace. I still held hope he would make it.

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    Explore related topics: texas, suicide, shooting, poverty, gun, food-stamps, welfare, laredo
  • 8
    Dec
    2011
    9:39am, EST

    Girl posts 'may die 2day' before mother kills her

    By msnbc.com staff and The Associated Press

    SAN ANTONIO – Hours before her mother shot her, Ramie Marie Grimmer, 12, posted a chilling Facebook update: “May die 2day.”

    Ramie wrote the words Monday night after her mother had taken her and her 10-year-old brother, Timothy Grimmer, hostage along with a human services worker at a state office in Laredo, Texas, police said Wednesday. The standoff ended late Monday with Rachelle Grimmer shooting Ramie and Timothy once each in the head and then killing herself, police said.

    Ramie died Wednesday in a San Antonio hospital. Her brother Timothy is in critical condition.

    The seven-hour ordeal began when Rachelle Grimmer visited the state welfare agency in Laredo with her children, angry because the family had been denied food stamps.

    When the family entered the office, shortly before 5 p.m., Grimmer asked to speak to a new caseworker, not one with whom she worked previously, Texas Department of Health and Human Services spokeswoman Stephanie Goodman told The Associated Press.

    Shortly thereafter, Goodman said, Grimmer was taken to a private room to discuss her case. She said it was there that the mother revealed a gun and the standoff began.

    Police negotiators stayed on the phone with Grimmer throughout the evening, but she kept hanging up, Laredo police investigator Joe Baeza said. She allegedly told negotiators about a litany of complaints against state and federal government agencies.

    Grimmer let a supervisor go unharmed around 7:45 p.m., but stayed inside the office with her children. Hostage negotiators stayed on the phone with Grimmer, reported the AP.

    Five minutes later, 12-year-old Ramie changed the “employer” section of her Facebook account to “may die 2day.”

    Nearly three hours later, at 10:34 p.m., Ramie posted “im bored,” and then 18 minutes later, “ahhhhhhhhhhhhhhhhhhhahhhhhhhh”.

    Grandmother responds on Facebook
    Ramie’s final post, at 11:28 p.m., read “tear gas seriasly” [sic], an apparent reference to the SWAT team that had surrounded the building. In response, a woman on Facebook who identifies herself as Ramie and Timothy’s grandmother wrote back “I’m here for you guys. no reason to be afraid”.

    But after negotiators hung up the phone with Grimmer around 11:45 p.m., police heard three shots, and entered the building. Inside, they found Grimmer's body and her two wounded children.

    The children’s other grandmother told The AP her former daughter-in-law had a history of mental problems. Mary Lee Shepherd of Montana says she and her son Dale Grimmer, the children's father, had contacted social workers at least three times. She says they worried Grimmer could harm the children.

    Grimmer first applied for food stamps in July but was denied because she didn't turn in enough information, Goodman said.

    Goodman said Grimmer's last contact with the agency appeared to be a phone call in mid-November.

    It wasn't clear what specifically triggered Monday’s deadly standoff. 

    "This wasn't like a knee-jerk reaction," said Baeza, adding that Grimmer felt she was owed restitution of some sort.

    © 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    807 comments

    How tragic on so many levels.

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    Explore related topics: texas, food-stamps, facebook, featured, ramie-grimmer
  • 7
    Dec
    2011
    2:53pm, EST

    Relative: Mom in welfare standoff mentally unsound

    By The Associated Press

     SAN ANTONIO -- The grandmother of two children shot by their mother inside a Texas welfare office says her former daughter-in-law had a history of mental problems.

    The 10-year-old son and 12-year-old daughter of Rachelle Grimmer remained in critical condition Wednesday. Authorities say Grimmer shot her children and then killed herself during a standoff in a state building where the family had been denied food stamps.

    Mary Lee Shepherd of Montana said Wednesday that Texas officials should have given Grimmer the food stamps and then removed her grandchildren from Grimmer's custody.

    Officials: Mom who shot her 2 kids was denied food stamps

    Shepherd says she and her son Dale Grimmer, the children's father, had contacted social workers at least three times. She says they worried Grimmer could harm the children.

    Rachelle Grimmer and her children moved to Texas from Ohio this summer.

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    12 comments

    "Mom in welfare standoff mentally unsound" ya think? Brilliant headline

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    Explore related topics: texas, ohio, suicide, shooting, poverty, gun, food-stamps, welfare, laredo
  • 7
    Dec
    2011
    4:51am, EST

    Officials: Mom who shot her 2 kids was denied food stamps

    Cuate Santos / AP

    Officials say Rachelle Grimmer, 38, pulled a gun and staged a seven-hour standoff with police that ended with her shooting her two children in the Texas Health and Human Services building in Laredo, above.

     

    By msnbc.com staff and news services

    LAREDO, Texas - A mother who shot and critically injured her two children and then killed herself had for months tried unsuccessfully to qualify for food stamps, Texas welfare officials said.

    The woman, identified as Rachelle Grimmer, 38, first applied for food stamps in July but was denied because she didn't turn in enough information, Texas Department of Health and Human Services spokeswoman Stephanie Goodman told The Associated Press Tuesday.


    "She originally applied for the stamps on July 7," Goodman said, according to the Zanesville Times Recorder. "We scheduled an interview by phone with her, but couldn’t reach her after repeated attempts."

    • Texas mom shoots kids, self after welfare standoff

    The children, a 10-year-old boy and a 12-year-old girl named Ramie and Timothy, remained in critical condition on Tuesday. The shooting took place at a Texas Department of Health and Human Services building in Laredo. Police said about 25 people were inside at the time.

    Goodman told the AP she didn't know what documentation Grimmer specifically failed to provide. In addition to completing an 18-page application, families seeking state benefits also must provide proof of employment and residency.

    "We were still waiting, and if we had that, I don't know if she would still qualify or not," Goodman said.

    Grimmer, formerly of Crooksville, Ohio, had moved to Laredo around nine months ago, Laredo Police Investigator Joe Baeza told the Zanesville Times Recorder.  The children apparently were home-schooled, he added.

    The Associated Press contributed to this report.

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    994 comments

    An 18 page application WTF my security clearance paperwork for the military was far less than 18 pages.

    Show more
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