ST. LOUIS — A man from Ohio was arrested this week after he was accused of defrauding a Missouri grocery store chain of $15 million worth of groceries.
According to the U.S. Attorney’s Office in the Eastern District of Missouri, Muhammad Babar Chaudry, 46, owned a southern Ohio grocery chain called Sunshine Stores LLC during the alleged fraud.
The Missouri grocery chain, which has not been named, had licensed its brand to 38 of Chaudry’s stores and provided them with groceries, which began in May 2021.
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Two years later, in March 2023, Chaudry ordered $7.6 million in groceries and inventory from the Missouri chain with no intention of paying, according to the indictment.
Chaudry again ordered $7.5 million of inventory in April 2023 and repeatedly lied to the Missouri company about payment.
According to the U.S. Attorney’s Office, one of Chaudry’s employees was told to lie and said he was out of the country and later told the Missouri company “fraudulent activity” prevented their payment of inventory.
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Chaudry allegedly drained his bank accounts intentionally so the victim company could not withdraw funds. Chaudry then falsely claimed he was wiring the payments.
The U.S. Attorney’s Office said there is a motion for Chaudry to be held in jail as he awaits trial after allegedly stealing $1 million worth of copper from a location of the victim company and pouring concrete down the sinks and drains of the store.
Chaudry has been charged with four counts of wire fraud and was arrested on Wednesday night. He was ordered to be held in jail until trial at a hearing in Detroit.
Chaudry could face up to 20 years in prison, a $250,000 fine, or both for wire fraud.
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