Quick Answer: Muhammad Dalalli received prison time and faces deportation after defrauding federal welfare programs of $126,739 by concealing Iraqi bank accounts and assets. The Grand Rapids man also made false statements on his citizenship application and unsuccessfully attempted to withdraw his guilty plea.
GRAND RAPIDS, MI—U.S. Attorney Patrick Miles announced today that Muhammad Dalalli, 41, of Grand Rapids, was sentenced by Chief U.S. District Judge Robert J. Jonker for his scheme to defraud the federal government in connection with subsistence benefits.
On November 4, 2013, Dalalli and his wife were charged with defrauding the federal government of numerous subsistence benefits after arriving in the United States from Iraq. The programs defrauded included the Women, Infants and Children (“WIC”) program, Temporary Assistance to Needy Families (“TANF”), HUD, and Medicaid benefits. Dalalli and his wife defrauded these programs by failing to reveal their ownership of Lebanese bank accounts and other assets, and by concealing their living arrangements in connection with their receipt of HUD-subsidized housing. The fraud scheme resulted in losses totaling $ 126,739. Dalalli, a naturalized U.S. citizen, was additionally charged with making false statements in connection with his citizenship application.
Dalalli’s trial commenced on January 13, 2015. After the first day of trial he entered a guilty plea to all counts. Shortly thereafter, he requested that his guilty pleas be set aside, claiming that he had been coerced into pleading guilty by his defense attorney. This request was denied by Judge Jonker, who noted that the court had inquired at length with Dalalli concerning his decision to plead guilty, and Dalalli had assured the court that his decision to plead guilty was voluntary.
Each weekday I send one short email: one money story that caught my attention, why it might matter to you, and one manageable thing you can do with it. A couple of minutes, and a dad joke.
In the latest issue (Oct 9): Does Financial Literacy Make Financial Sense?
Free. I sell nothing. Unsubscribe any time.
On July 14, 2015, Judge Jonker sentenced Dalalli to serve a prison term of 27 months, followed by supervised release of 36 months. The sentence included restitution of $ 126,739. Dalalli was also stripped of his U.S. citizenship and ordered deported following the completion of his sentence. Dalalli’s wife, Rima Alame, will be sentenced on August 31, 2015.
The Daily Money Brief — Free, at 10 AM
Money you may be owed, scams to dodge, and the fine print decoded — the consumer money news that affects your wallet, every weekday.
This case was investigated by the Department of Agriculture, Office of Inspector General, the Federal Bureau of Investigation, and the Michigan Department of Health and Human Services, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Timothy VerHey.
Dealing With Debt? Understanding your options is the first step. See how all your debt relief options compare — including ones most sites won’t tell you about. The Find Your Path quiz gives a recommendation based on your actual numbers, and the Scam-O-Meter checks any company’s complaint history before you sign. Federal Reserve research shows bankruptcy filers recover faster than those who don’t file.
