AG: Fraudsters stole $100,000 pretending to be Sahadi’s grocery store

February 6, 2023 Rob Abruzzese

Sahadi's famous Middle Eastern food emporium on Atlantic Avenue in Brooklyn. Photo: Mary Frost/Brooklyn Eagle.

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Attorney General Letitia James is suing a company that she claims is pretending to be the local Brooklyn grocery store Sahadi. The Attorney General claims that the company has defrauded its way into $100,000 by creating a corporation with a similar name and address.

James is suing a company named Sahadi Fine Foods Products Inc., which is using the same address as the previously established Sahadi Fine Foods Inc.

“This fraud is causing real harm to small businesses,” said Pat Whelan of Sahadi’s Fine Foods. “We thank Attorney General James for taking quick action to stop these fraudsters and protect small businesses.”

The alleged fraudsters used Sahadi’s actual address to open up a bank account and managed to divert $100,000 in checks into the legitimate company, James said. James filed a lawsuit to dissolve the fake corporation.

The worst part is that the Attorney General explained that the scam seems to be becoming more common.

“Fraudsters stealing identities to create fake companies can do real damage to unsuspecting New Yorkers,” said Attorney General James. “Small businesses and ordinary New Yorkers have fallen victim to this scheme and my office has taken action to shut down these fraudsters. I urge New Yorkers to be vigilant and file a complaint with my office if they believe that their name or address is being fraudulently used.”

Sham corporations, James explained, are often the first sign of a more extensive identity or mail theft has taken place. The Office of the Attorney General has gotten complaints from New Yorkers who have received mail from the New York Department of Taxation and Finance for businesses that they have never heard about.

People open up these sham corporations in order to file and collect fraudulent tax refunds, open lines of credit, take out bank loans, and other fraudulent criminal activity. The companies have often posed as fake technology companies or fake consulting firms.

The OAG has sued approximately 13 companies for opening similar names to existing businesses including Underground City Inc., and US Chocolate Corporation in Brooklyn.