Milwaukee store owner pleads guilty to $1.6M SNAP fraud

A Milwaukee convenience store owner has agreed to plead guilty to defrauding the federal government’s Supplemental Nutrition Assistance Program of more than $1.6 million over the course of about three years.

Nael Jabbar, 47, on Feb. 6 agreed to plead guilty to wire fraud and filing a false tax return, according to a plea agreement. He is scheduled to be arraigned and formally enter his plea on March 17.

Jabbar operated the fraud scheme out of his convenience store, Hot Spot Supermarket, 2643 W. Atkinson Ave., from 2021 through 2024, court records show.

Federal prosecutors said Jabbar exchanged SNAP benefits for cash at a discounted rate and recouped the difference, pulling in more than $1,610,700 he was not entitled to. He then transferred the money from Hot Spot’s business bank accounts into his personal accounts, court records show.

Jabbar spent the money on loan and credit card payments, retail goods, including some luxury items, and payments to Unlimited Vacation Club – a travel membership that offers preferred rates, discounts and VIP perks at luxury resorts – among other things.

Jabbar also filed false tax returns in 2020, 2021 and 2022, which resulted in a loss to the IRS of more than $87,000.

According to the plea agreement, Jabbar could face more than 20 years in prison and more than $250,000 in fines.

The federal charges are not the first time Jabbar, and Hot Spot, faced trouble with the law. The Milwaukee Common Council in 2023 temporarily suspended Hot Spot’s liquor license following reports of a shootout, drug deals and several other incidents at the store, Urban Milwaukee reported.