Franklin man pleads guilty to SNAP fraud, tax crimes

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A Franklin man has pled guilty to one count of wire fraud one count of filing a false tax return in the Eastern District of Wisconsin federal court.

Nael Jabbar, 47, has owned the Hot Spot Super Market in Milwaukee since 2005.  The store was authorized to accept benefits under the Supplemental Nutrition Assistance Program (SNAP) and signed documents to agree to comply all program requirements. From 2021 through 2024, he defrauded the program by exchanging benefits for cash, giving SNAP beneficiaries half of the transaction in cash while he billed the program for the full amount.

The government will argue at sentencing that Jabbar’s scheme caused a loss of more than $1.6 million.

Jabbar also signed and submitted to the Internal Revenue Service (IRS) individual income tax returns (Forms 1040) that did not report all the income he received in 2020 through 2022. During those years, he transferred approximately $611,000 from business bank accounts to his personal accounts and then used the funds for personal expenses such as travel, vacations, retail purchases and payments on personal loans and credit cards.

Jabbar’s filing of false Forms 1040 caused a total tax loss to the IRS of more than $87,000.

Jabbar’s sentencing is scheduled for July 28. At sentencing, he faces up to 20 years in prison and a $250,000 fine on count one, as well as three years in prison and a $250,000 fine on count two. He also faces a term of supervised release after imprisonment.