Two Harrisburg Store Owners Sentenced to Federal Prison for Food Stamp Fraud

Two former merchants from Harrisburg have been sentenced to federal prison for orchestrating a scheme that illegally diverted over $1 million in government food assistance funds. Mervat Gharib, 60, and Adam Rashwan, 63, received 21-month prison terms each after pleading guilty to charges related to the unauthorized use of Supplemental Nutrition Assistance Program (SNAP) benefits over several years.

The convictions stem from fraudulent activities at Capital City Family Market, a small convenience store on North 6th Street in Harrisburg, which was operated by the former couple. According to federal prosecutors, from as early as 2011 through mid-2021, the store facilitated illegal SNAP transactions, often allowing customers to exchange benefits for cash—a violation of federal regulations. An investigation revealed 24 separate undercover transactions at the store that demonstrated a pattern of food stamp trafficking.

Anomalies in the store’s transaction data triggered the investigation. In May 2021 alone, Capital City Family Market processed 408 SNAP transactions totaling nearly $97,000, with an average amount of $238.86—substantially above the norm for similar establishments in Pennsylvania. From 2014 to 2021, the store received more than $1.8 million in SNAP redemptions. The scheme ultimately defrauded the USDA-administered program of approximately $1.09 million. The business has since ceased operations.

In addition to the prison sentences, both Gharib and Rashwan were ordered to pay full restitution to the USDA’s SNAP program. The case was investigated by the USDA Office of Inspector General and the FBI, and prosecuted by Assistant U.S. Attorney William A. Behe.

Article by multiple RFHC contributors, based upon information from the U.S. Attorney’s Office, Middle District of Pennsylvania

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