Store cited for fraud

SANDUSKY — The state intends to suspend a downtown drive-thru convenience store's liquor license later this month as a result of a fraud investigation. Moe Askar, who owned Variety Village on East Market Street in Sandusky, illegally bought SNAP (Supplemental Nutrition Assistance Program) cards with government benefits, according to the state's public safety department. People use SNAP cards, which replaced food stamps years ago, to purchase food. Moe Askar The scheme involved Variety Village buying SNAP-loaded EBT cards for a fraction of their face value, according to a report of the investigation the Register obtained through a public records request. In all, almost $5,000 "in fraud was uncovered" at Variety Village during the investigation's time frame, the report states. The state-conducted investigation took place in 2017 and 2018, with 10 violations cited. Askar allegedly used the cards to make purchases at various retail outlets, the report states. This includes local chain stores — like Aldi, Sam's Club, Walmart — in addition to places in Cleveland and Michigan. It's unknown if the purchases were made to replenish inventory at Variety Village. State agents conducted a sting inside Variety Village using digital recording equipment capturing the transactions, according to the report. One agent, who went undercover in Variety Village, indicated Askar pulled out "a stack of EBT cards from his back pocket." They also identified three SNAP card recipients who sold their benefits to Variety Village. Liquor license in limbo? Askar faces four charges, according to the report: illegal possession of EBT, illegal use of EBT, trafficking in EBT and theft offense. As punishment, the state liquor control commission intends on suspending Variety Village's liquor license for 30 days, effective Feb. 27. Variety Village, however, can pay a $3,000 fine in lieu of the suspension. As of Wednesday, Variety Village has not paid the fine. Variety Village on East Market Street in Sandusky is the subject of a state-conducted fraud investigation. The company allegedly bought EBT cards with SNAP benefits loaded onto them for a fraction of their face value. Register photo/ANDY OURIEL "The commission has a very wide discretion in determining a penalty that is appropriate," commission executive director Sarah Creedon said. Askar, however, recently sold the business to Farrar Family Enterprises. This means the new business assumes its past troubles and has been burdened with all outstanding penalties. Charles Farrar, who identified himself as the owner on Wednesday, said the fine will get paid before Feb. 27. Charles is the husband of Erie County commission candidate Julie Farrar. Her campaign signs dot the property's perimeter. He also gave some reassurance of operating the business legally going forward. "Whatever happened before won't happen again," said Charles, referencing fraud as it relates to SNAP. Past incidents of misconduct This isn't the first time Askar has faced criminal charges as it relates to Variety Village. In May 2019, an Erie County grand jury indicted Askar on three charges: illegal use of supplemental nutrition assistance program benefits, telecommunications fraud, money laundering and theft. Erie County prosecutor Kevin Baxter said the charges relate to a raid state and local authorities conducted at Variety Village in August 2018. The raid, supervised by state investigators and Sandusky police, seized Variety Village's financial records, cash and an EBT machine. Authorities booked Askar into the Erie County Jail on April 29, 2019, and he was released a day later on a $45,000 bond, according to jail records. A judge sentenced him to a two-year probation term. The fallout of SNAP fraud SNAP provides a bridge for low-income individuals or those with disabilities so they can buy basic-need food items for survival, said Neil Yingling, the fraud investigator for Erie County Job and Family Services. So what happens when people misuse the program? Erie County could receive less funding for SNAP, meaning more community members go hungry. "It really does prevent us to serve the individuals that truly need them," said Tina Krueger, the interim deputy director of community service for job and family services. "We have to be good stewards of the resources that we have so that the members of our community that really need them do receive them."