A store owner has pleaded guilty to federal charges for defrauding the SNAP food assistance program out of more than $1.6 million.
A Franklin man pleaded guilty Tuesday to federal charges for defrauding the taxpayer-funded Supplemental Nutrition Assistance Program (SNAP) of more than $1.6 million through a scheme at his Milwaukee convenience store.
Nael Jabbar, 47, entered the plea April 14 in U.S. District Court to one count of wire fraud and one count of filing a false tax return. Jabbar owned and operated Hot Spot Super Market on Milwaukee’s north side since 2005. The store was authorized to accept SNAP benefits, and Jabbar signed agreements promising to follow all program rules.
From 2021 through 2024, Jabbar exchanged SNAP benefits for cash. He gave beneficiaries roughly half the transaction value in cash while billing the federal government for the full amount. The scheme resulted in a loss to the SNAP program of more than $1.6 million.
Jabbar also admitted filing false individual income tax returns for 2020 through 2022. He transferred approximately $611,000 from business accounts to personal ones and used the funds for travel, vacations, retail purchases, and payments on personal loans and credit cards. That conduct caused a tax loss to the IRS of more than $87,000.First Assistant U.S. Attorney Brad Schimel, announcing the plea, stressed the seriousness of stealing from programs meant to help those in need.
“Taxpayers expect that federal benefits like SNAP will go to families who need assistance putting food on the table—not to line the pockets of dishonest store owners,” Schimel said. “Schemes like this one drive up costs for everyone and erode public trust in important safety-net programs.”
Sentencing is scheduled for July 28. Jabbar faces up to 20 years in prison and a $250,000 fine on the wire fraud count, plus up to three years and another $250,000 fine on the false tax return charge. He also faces a term of supervised release.
