Nael Jabbar of Franklin, Wisconsin, pled guilty on April 14 to one count of wire fraud and one count of filing a false tax return, according to an announcement by Brad D. Schimel, First Assistant U.S. Attorney for the Eastern District of Wisconsin.
The case highlights efforts by federal authorities to address financial crimes affecting government programs and public funds in Eastern Wisconsin. The U.S. Attorney for the Eastern District of Wisconsin contributes to community safety across the region through public service efforts, according to the official website.
Jabbar owned Hot Spot Super Market in Milwaukee since 2005 and was authorized to accept Supplemental Nutrition Assistance Program (SNAP) benefits. From 2021 through 2024, he exchanged SNAP benefits for cash with customers, providing half the transaction amount in cash while billing SNAP for the full value. The government will argue at sentencing that this scheme resulted in a loss exceeding $1.6 million.
In addition, Jabbar submitted individual income tax returns from 2020 through 2022 that did not report all his income. During these years, he transferred about $611,000 from business accounts into personal accounts and used these funds for personal expenses such as travel and loan payments. This led to a total tax loss over $87,000.
Jabbar’s sentencing is set for July 28 at 9:00 a.m., where he faces up to twenty years in prison and a $250,000 fine on the wire fraud charge as well as three years in prison and another $250,000 fine on the false tax return charge.
The U.S. Department of Agriculture Office of Inspector General and IRS Criminal Investigation investigated this case; Assistant U.S. Attorney John P. Scully is prosecuting it.
The U.S. Attorney for the Eastern District of Wisconsin is part of the U.S. Department of Justice and serves as a federal prosecutorial entity handling federal prosecutions within its jurisdiction according to its official website (source). It works alongside federal, state, local and tribal law enforcement partners with offices located in Milwaukee and Green Bay.
