Show-Me State Times

An Ohio man has been arrested and charged with defrauding a Missouri grocery chain of more than $15 million in groceries and inventory. Muhammad Babar Chaudhry, 46, was indicted on July 23 in U.S. District Court in St. Louis on four counts of wire fraud. He was taken into custody Wednesday night and ordered held until trial during a hearing Friday in Detroit.

According to the indictment, Chaudhry owns Sunshine Stores LLC, a grocery chain based in southern Ohio. Starting in May 2021, the Missouri grocery company licensed its brand to 38 stores operated by Chaudhry and supplied those locations with groceries. The indictment alleges that in March 2023, Chaudhry ordered $7.6 million worth of goods from the Missouri company without intending to pay for them, followed by another $7.5 million order in April 2023.

The indictment further claims that Chaudhry misled the victim company about payment status, instructing an employee to lie about his whereabouts and later blame "fraudulent activity" for missed payments. It also states that he deliberately emptied his bank accounts so funds could not be withdrawn by the supplier and falsely asserted that payments were being wired.

A motion seeking Chaudhry's detention alleges additional acts of sabotage, including stealing copper from one store—resulting in an estimated $1 million replacement cost—and pouring concrete down sinks and drains at the victim company's stores.

"Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty."

If convicted of wire fraud, Chaudhry faces up to 20 years in prison and a fine of up to $250,000 per count.

The case was investigated by the FBI. Assistant U.S. Attorney Derek Wiseman is prosecuting.