Milwaukee Grocery Owner Pleads Guilty to $1.6M SNAP Fraud Scheme

A man who owned a supermarket in Milwaukee, Wisconsin, has pleaded guilty to wire fraud and filing a false tax return after allegedly committing fraud in the Supplemental Nutrition Assistance Program. 

Nael Jabbar, 47, of Franklin, Wisconsin, pled guilty on April 14, 2026, to one count of wire fraud, in violation of 18 U.S.C. § 1341, and one count of filing a false tax return, in violation of 26 U.S.C. § 7206(1).

Since 2005, Jabbar has owned and operated Hot Spot Super Market in Milwaukee, which was authorized to accept SNAP benefits. 

He signed documents for Hot Spot, agreeing to comply with 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.

About 42 million people rely on the SNAP program nationwide, but many people —both SNAP recipients and SNAP retailers — abuse the program meant to feed low-income households. People commit fraud by lying about income, family size, selling benefits for cash, or trading benefits with retailers for ineligible items such as alcohol, tobacco, or lottery tickets. 

The owner of a Milwaukee supermarket pleaded guilty to one count of wire fraud and one count of filing a false tax return involving a SNAP fraud scheme. The man exchanged benefits for cash, giving SNAP beneficiaries half of the transaction in cash while he billed the program for…

— USDA OIG (@OIGUSDA) April 17, 2026

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, 2026, at 9:00 a.m. 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.

The Trump administration has targeted public benefit fraud. U.S. Department of Agriculture Secretary Brooke Rollins has said that the SNAP program is “broken” and that many people are abusing the program. 

SNAP fraud is out of control, and the numbers we HAVE prove it.

Data from just 29 states uncovered nearly 200,000 people with dead people’s social security numbers… Meanwhile, 21 states are suing to keep their data hidden.

Why block transparency unless the truth is worse than… pic.twitter.com/XAjHKncCfp

— Secretary Brooke Rollins (@SecRollins) November 13, 2025

The U.S. Department of Agriculture, Office of Inspector General, and IRS, Criminal Investigation, investigated the case, which Assistant U.S. Attorney John P. Scully is prosecuting.

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