According to the prosecution, Ali Mugalli Hassan, 32, and Mugalli Ahmed Hassan, 50, both of Alameda, were found guilty of conspiring to defraud the United States, defrauding the government of benefits amounting to more than $5,000, conspiring to commit wire fraud, and committing wire fraud.
Family members worked as cashiers at the convenience shop owned and run by Ali Mugalli Hassan on International Boulevard in Oakland.
The convenience store served as a Supplemental Nutritional Assistance Program (SNAP) approved vendor.
According to the prosecution, the store made a significant number of SNAP transactions, including redeeming more than $2.3 million in benefits between August 2014 and November 2017.
By charging purchases to customers’ energy benefits transaction cards when they got few or no eligible products, the defendants were able to conduct fraudulent SNAP transactions through the convenience shop, according to evidence presented at the trial.
According to the prosecution, the defendants retained 50 percent of the value of the fraudulent transactions and paid the remaining 50 percent to the victims in cash.
In order to carry out their plan, the defendants maintained the cards and exploited the federal advantages associated with them to make purchases at other stores for their convenience store.
Mugalli Ahmed Hassan admitted guilt to nine counts of wire fraud prior to the trial.
On December 8, both men are due to receive sentences.
Ahmed Ahmed Hasan Dharahan, 41, of Oakland, a different family member, is a co-defendant in the case and his case is currently ongoing.
