Information — United States v. Hared Nur Jibril, District of Minnesota (Doc. 1)
Summary
A criminal information filed by the Acting United States Attorney against Hared Nur Jibril, Case 0:21-cr-00239-ECT, in the U.S. District Court for the District of Minnesota, filed November 15, 2021 as Doc. 1. Count 1 charges conspiracy to commit wire fraud under 18 U.S.C. Sections 1343 and 1349, alleging that Jibril, owner of Hormud Meat & Grocery Market in St. Cloud, and cashiers let customers exchange SNAP and WIC benefits for cash and ineligible items. Count 2 charges wire fraud, alleging Jibril falsely told DEED he was unemployed due to the pandemic while working at the store, and that DEED paid $32,724 in UI benefits, citing a $2,400 wire on May 5, 2020. The forfeiture allegations include $8,860.68 seized from a Hormud Meat and Grocery Market Inc. account. It is signed by Assistant U.S. Attorney Sarah E. Hudleston.
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“Information — United States v. Hared Nur Jibril, District of Minnesota (Doc. 1).”
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CASE 0:21-cr-00239-ECT Doc. 1 Filed 11/15/21 Page 1 of 12
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LINITED STATES DISTRICT COURT RFCE.,YFD
DISTRICT OF MINNESOTA
Nlv 15
Criminal No.
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TINITED STATES OF AMERICA. ?i,ffi[,i,8,?J:ffii,?L38yi,
Plaintiff. INFORMATION
v. 18 U.S.C. $ 1343
18 U.S.C. $ 1349
HARED NUR JIBRIL,
Defendant.
THE ACTING UNITED STATES ATTORNEY CHARGES THAT:
BACKGROUND
The Food Stamp Program
1. The United States Department of Agriculture ("USDA") is an agency of
the United States.
2. The Food and Nutrition Service is an agency of the USDA that runs the
federal Food Stamp Program. The Food Stamp Program is funded entirely by the
USDA through the Food Nutrition Service.
3. The USDA established and implemented the Food Stamp Program to
raise the level of nutrition of low-income households by helping qualifring families
and individuals buy food at approved retail food stores.
4. The Food and Nutrition Service delegates certain administrative duties
to appropriate state agencies. In Minnesota the Minnesota Department of Human
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U.S. DISTHiCT COURT MPLS
CASE 0:21-cr-00239-ECT Doc. 1 Filed 11/15/21 Page 2 of 12
U.S. v. Hared Nur Jibril
Services determines food stamp eligibility and administers the distribution and
redemption of food stamp benefits.
5. As of October l, 2008, the official name of the Food Stamp Program
changed to the Supplemental Nutrition Assistance Program (SNAP), but some of the
forms and regulations still refer to the Food Stamp Program.
6. SNAP recipients are issued Elecffonic Benefit Transfer (EBT) cards that
canbe used at participating retailers. EBT cards are like debit cards, and in the case
of SNAP, the EBT card is credited monthly with the recipient's alTocated benefit
amount. The recipients can redeem benefits atparticipatrng authortzed retailers.
l. SNAP recipients may exchange their benefits only for eligible food items
at the time of purchase of the eligible food items, and only at stores that are avthonzed
by the USDA to accept SNAP benefits. According to regulations issued by the
Secretary of Agriculture, avthonzed stores are prohibited from accepting SNAP
benefits in exchange for items such as alcoholic beverages, tobacco, hot foods, cell
phone minutes, and non-food items. These regulations also prohibit the redemption of
SNAP benefits for cash, to pay down a credit accotrnt at a store, or to pay for eligible
food items in advance of receiving the food.
8. SNAP benefits arc redeemed like a debit card transaction, either by
manually entering the account information or by swiping the EBT card through a
Point of Sale (POS) device. The SNAP recipient then enters a personal identification
number (PIN) on the machine's external PIN pad to complete the transaction. Once
the SNAP recipient enters the PIN, the POS device communicates elecffonically with
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FIS, a USDA administrator, to confirm avatlabtlity of funds. FIS approves or rejects
the ffansaction. Whether atransaction is approved or denied, the POS device records
the EBT card account number, the date and time of the transaction, and the amount
debited or attempted to be debited from the SNAP recipient's EBT card. When using
EBT in a lawfulmanner, each ffansaction is for the exact dollar amount of the SNAP-
eligible food items; the retatler does not provide the recipient with change.
9. To become eligible to participate in SNAP, retailers in Minnesota are
required to complete, sign, and submit a Food Stzimp Program Application for Stores,
form FNS 252. This application includes acertlfrcation from the applicant stating that
he or she has read and reviewed the program rules and regulations. If the Food and
Nurition Service authonzes the retarTer, it sends an authoization packet to the
retarTer, which also discusses the requirements of SNAP. The forms in this packet tell
the retailer thatthe only allowable use of EBT food stamp benefits is to purchase food.
10. Retailers approved by the USDA to participate in SNAP are issued a food
stamp avthorrzation number and are provided with a POS device, which debits SNAP
recipients' accounts for the cash value of the items purchased. USDA then reimburses
the retailer for the redemptions via an elecffonic transfer into a bank account
designated by the retailer.
The'WIC Program
11. The Food and Nutrition Service also administers the Special
Supplemental Nutrition Assistance Program for Women, Infants and Children
CASE 0:21-cr-00239-ECT Doc. 1 Filed 11/15/21 Page 4 of 12
U.S. v. Hared Nur Jibril
("WIC"). WIC is funded by the USDA through the Food Nutrition Service and
through arebate from an infant formula manufacturer.
12. The USDA established and implemented WIC to provide special
supplemental foods, health screening, and nutrition education to pregnant,
postparrum, and breastfeeding women, infants, and children from families with
inadequate income. The foods provided by the WIC Program contain specific
nuffients intended to treat and prevent nutritional deficiencies and related health
conditions.
13. In running WIC,. the Food and Nutrition Service delegates certain
administrative duties to state agencies. In Minnesota, the MinnesotaDepartment of
Health ("MDH") administers and monitors the WIC progtam.
14. In Minnesota, WIC foods are provided through use of food benefits that
the participants or their avthorized proxies can rcdeem for authonzed foods at rctatL
grocery stores and pharmacies (vendors) authortzed to accept them. Between October
20L8 and October 2019, the Minnesota WIC Program transitioned its food benefits
from paper vouchers to EBT cards.
15. Food benefits in the form of WIC EBT cards have unique serial numbers
and have magnetic sffipes that allow an online connection to the WIC Program's
conffact EBT processor and attach to a particllar WIC household's aggregate food
benefits.
16. To conduct a WIC EBT transaction. stores use either a "stand beside
device" supplied by WIC's conffact EBT processor, or a sophisticated "tntegrated"
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POS system certified by the WIC EBT processor. Hormud Meat and Grocery used
both technologies for its WIC ffansactions. Both fypes of equipment are configured
with the vendor's.unique WIC identification number, which attaches to the electronic
record of each WIC ffansaction. During each WIC transaction, the customer will
swipe their WIC EBT card and enter their PIN. The cashier will scan the UPC code
of each non-produce WIC food item, and, depending on technology type, either key-
enter the price of each individual WlC produce item or scan the UPC or PLU of each
WIC produce item. When the transaction is finalized, it is elecffonically routed to
WIC EBT processor, which validates the transaction, deducts from the card the foods
provided, and routes payment electronically to the vendor's bank account.
17. Regulations governing the WIC Program prohibit the redemption of
WIC benefits for cash or non-food items. to finance a credit account at a stote, or to
pay for eligible food items in advance of receiving the food.
18. To become eligible to participate in WIC, retailers in Minnesota are
required to complete, sign, and submit a WIC application form. If the store meets
program requirements, store personnel must receive training and the owner must
execute a Retail Food Vendor Agreement. The Retail Food Vendor Agreement is a
contractbefween the WIC Programand the vendor that, among other things, describes
the terms of the vendor's paftLcipation in the program, including that the vendor must
comply with all apphcable federal and state regulations and outlines the penalties for
failure to comply with program requirements.
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U.S. v. Hared Nur Jibril
Unemployment Insurance
19. The Social Security Act of 1935 initiated the federal and state
unemployment insurance (UI) system. The system provides benefits to individuals
who are unemployed for reasons beyond their control. The purpose of the UI system
is twofold: first, to lessen the effects of unemployment through cash payments made
directly to laid-off workers, and second, to ensure that life necessities are met on a
weekly basis while the worker seeks employment. UI is a joint state-federalprogram
pursuant to which eligible people who had lost employment earnings could apply for
cash benefits. In the State of Minnesota, the UI system is administered by the
Department of Employment and, Economic Development ("DEED ").
20. As a result of the COVID-19 pandemic, the federalgovernment provided
significant supplemental benefits to the states. Beginning in March 2020 and
continuing through Septernber 6,202I, the Families First Coronavirus Response Act
("FFCRA") and the Coronavirus Aid, Relief , and Economic Security ("CARES")
Act, and the American Rescue Plan Act of 2021 (ARPA) have created federal
programs that'allowed for the significant outlay of federal funds flowing to the states
to offset the historical need for unemployment benefits by the American workfbrce,
including, to the State of Minnesota. Together, these laws provrded additional
flexibility for state Unemployment Insurance ("lII") agencies and addrtional funding
to respond to the COVID-19 pandemic.
2I. During the summer of 2020, among other times, Minnesota was
providing UI cash benefits to assist individuals affected by the pandemic.
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U.S. v. Hared Nur Jibril
22. To receive UI benefits, applicants had to complete certifications to
DEED in which they attested under penalty of perjury that they had lost employment
due to the pandemic. If authortzed for benefits, recipients received weekly cash
payments on prepaid debit cards or directly deposited into their bank accounts.
23. During the COVID-I9 pandemic, funds forMinnesota's Ulbenefits were
electronically distributed from the United States Department of Treasury to DEED
and ultimately to the recipients.
The Defendant atd The Store
24. At all times relevant to this Information, JIBRIL, was the owner of
Hormud Meat & Grocery Market ("Hormud Market"), a USDA-designated "small
grocery store" located at3360 W. Division St., St. Cloud, IvfI\T 56301. JIBRIL also
worked as a store cashier at Hormud Market.
25. Hormud Market has been atthorLzed to participate in the USDA SNAP
since approximately July 2009 anditwas reauthorrzed to participate in January 2018.
On January 17,2018, JIBRIL signed a certlfication to USDA promising among other
things that he would "accept responsibility on behalf of the firm for violations of the
Supplemental Nuffition Assistance Program regulations, including those committed
by any of the firm's employees, paid or unpaid, new full-time or part-time. These
include violations such as, but not limited to: Trading cash for Supplemental Nutrition
Assistance Program benefits (i.e. trafficking); Accepting Supplemental Nutrition
Assistance Program benefits as payment for ineligible items; Accepting Supplemental
Nutrition Assistance Program benefits as payment on credit accounts or loans;
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U.S. v. Hared Nur Jibril
Knowingly accepting Supplemental Nutrition Assistance Program benefits from
people not authoflzedto use them." Signing the certification JIBRIL attested, "I have
read, understand and agree with the conditions of participation. ..and agree to comply
with all statutory and regulatory requirements associated with partrcipation in the
Supplemental Nutrition Assistance Program." The certification informs the applicant
that, in addition to any other sanctions described in the agreement, the vendor is
subject to prosecution under applicable federal, state, or local laws for violation of
SNAP rules and regulations.
26. Hormud remained authonzed by FNS to accept SNAP benefi.ts.
27. At all times relevant to this Information, a retail food Vendor Agreement
signed by JIBRIL was in effect between the Minnesota WIC Program and Hormud.
For example, on February 14, 2017, and February 17, 2020, JIBRIL signed WIC
Vendor Agreements that stated tn part, "The Vendor shall not provide, in exchange
for a WIC food benefft, any store credit (including rain checks), cash, non-food items,
or food items other than WlC-allowed foods on the WIC food benefit."
28. At all relevant times, JIBRIL worked at his store and received money
from the USDA for SNAP and WIC transactions.
29. Although he was employed during this time, including throughout the
spring and summer of 2020, JIBRIL applied to DEED for UI benefits, falsely stating
under oath that he was unemployed due to the COVID-l9 pandemic. Thereafter,
JIBRIL submitted weekly certifications to DEED, falsely stating under oath that he
did not work or receive any earnings or income. Relying on these false representations,
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DEED paid JIBRIL $32,724 in UI benefits, including 52,048 withheld for taxes,
between May 2020 and September 2020.
COTINT 1
(Conspiracy To Commit'Wire Fraud)
30. Paragtaphs I-29 are incorporated herein. From at least in or about
February 2018 through in or about August 2021, in the State and District of
Minnesota. the defendant.
HARED NUR JIBRIL,
did knowingly conspire, combine, and agree with other persons known and unknown
to the Acting United States Attorney to devise a scheme and artrftce to defraud the
USDA and to obtain money by materially false and fraudulent pretenses,
representations, and promises, and for the purpose of executing such scheme and
arttfrce, and affempting to do so, ffansmitted and caused to be transmitted by means
of wire communications in interstate and foreign commerce, certain writings, signals
and sounds.
30. The purpose of the conspracy was to fraudulently obtain money from
the USDA by exchanging SNAP and WIC benefits for ineligible items and cash.
3I. As part of the scheme, JIBRIL and other cashiers at his store allowed
customers to use their SNAP and/ or WIC benefits to purchase ineligible items such
as cash, phone minutes, body care products, and food from JIBRIL's restaurant.
JIBRIL and his employees would fraudulently ring up eligible items or "general foods"
while giving the customer the cash or other ineligible items instead of valid SNAP or
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U.S. v. Hared Nur Jibril
WIC foods. They would also permit customers to use SNAP benefits to pay down
credit accounts. Hormud was reimbursed by the USDA for the full'amount of the
fraudulent SNAP and WIC transactions.
32. A1l in violation of Title 18, United States Code, Sections 1343 and 1349.
COUNT 2
(Wire Fraud)
33. Paragraphs l-29 are incorporuted herein.
34. Beginning in or around March 2020, and continuing until at least in or
around August 2020, in the State and District of Minnesota, and elsewhere, the
defendant.
HARED NUR JIBRIL,
did knowingly and unlawfully devise and participate in a scheme and arttfrce to
defraud and to obtain money andproperry by means of materially false andfraudulent
pretenses, representations, promises, andmaterial omissions, namely, unemployment
insurance benefit fraud as described above; and for the purpose of executing and
attempting to execute the above-described scheme and arttftce to defraud, knowingly
transmiffed and caused to be transmitted by means of wire communications in
interstate and foreign commerce, certain writings, signs, signals, and sounds,
including, but not limited to, the wire described below:
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U.S. v. Hared Nur Jibril
Date of receipt of Amount Description of interstate wire
wire (on or about)
Wire from U.S. Treasury in Washington D.C.
May 5, 2020 $2,400 to the Minnesota Department of Employment
and Economic Development in Minnesota,
ultimately deposited into JIBRIL's TCF Bank
account #xxx-xxx-8276
A11 in violation of Title 18, United States Code, Section 1343.
FORFEITURE ALLEGATIONS
35. Upon conviction of Count 1 of this Information, the defendant shall
forfeit to the United States pursriant to Title 18, United States Code, Section
981(a)(1XC) and Tttle 28, United Stat6s Code, Section 2461(c), any property, rcal or
personal, that constitutes or is derived from proceeds traceable to the commission of
the offense, including the $8,860.68 seized on September 74,2021, from Wells Fargo
Bank account xxx-xxx-0759 n the name of HORMUD MEAT AND GROCERY
MARKET INC.
36. Upon conviction of Count 2 of this Information, the defendant shall
forfeit to the United States pursuant to Title 18, United States Code, Section
98l(aXlXC) and Title 28, United States Code, Section 2461(c), any property, real or
personal, that constitutes or is derived from proceeds traceable to the commission of
the offense.
37. If any of the above-described forfeitable properfy is unavailable for
forfeiture, the United States intends to seek the forfeirure of substitute properry as
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U.S. v. Hared Nur Jibril
provided for in Title 27, United States Code, Section 853(p), as incorporated by Title
28, United States Code, Section 2461@).
Dated: November 12. 2021 CHARLES J. KOVATS, JR.
Acting United States Attorney
s/ Sarah E. Hudleston
BY: SARAH E. HUDLESTON
Assistant U.S. Attorney
Attorney ID No. 0351489
I2
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