The United States Attorney’s Office for the Middle District of Pennsylvania has announced the sentencing of two former Harrisburg merchants, Mervat Gharib and Adam Rashwan. Both individuals were sentenced to 21 months in federal prison on May 21, 2025, by Senior United States District Judge Yvette Kane. They were found guilty of defrauding the United States out of over $1 million in benefits from the federal food stamp program.
Acting United States Attorney John C. Gurganus stated that one-count Informations were returned against Gharib and Rashwan on October 19, 2022. The charges related to unauthorized use of benefits from January 2017 through August 2020. In November 2022, both defendants pled guilty.
The Supplemental Nutrition Assistance Program (SNAP), formerly known as the Federal Food Stamp Program, is administered by the United States Department of Agriculture (USDA). Retail food stores approved for SNAP can sell food in exchange for SNAP benefits but cannot lawfully exchange these benefits for cash. An investigation revealed that Capital City Family Market, a small retailer located at 2000 North 6th Street in Harrisburg, was involved in a scheme to defraud SNAP. Mervat Gharib was listed as the owner while Adam Rashwan was employed there during their marriage.
The fraudulent activities included food stamp trafficking where customers exchanged SNAP benefits for cash at Capital City Family Market between November 2016 and July 2021. This involved charging customers a significant percentage of the unlawful transaction amount. During this period, authorities conducted undercover transactions at the store where SNAP benefits were exchanged for cash.
Agents reviewed records from the Food and Nutrition Service (FNS) which showed that Capital City Family Market received approximately $1,806,761 in SNAP benefits from January 2014 through June 2021. Notably, in May 2021 alone, they processed transactions totaling $96,908.46 with an average transaction amount significantly higher than typical convenience or small grocery stores in Pennsylvania.
The investigation concluded that Rashwan and Gharib illegally diverted about $1,091,822.05 in SNAP benefits through their business operations until its closure.
Both defendants have been ordered to pay restitution to USDA's SNAP program amounting to $1,091,822.05.
This case was investigated by the USDA Office of Inspector General - Investigations and the Federal Bureau of Investigation with Assistant United States Attorney William A. Behe prosecuting.
