A popular deli in Norwood has reopened after being shuttered for six days following an alleged food stamp fraud scheme, shocking residents who frequent the eatery.

But the owner and his associates who are all related still face a slew of charges after several family members were arrested in an early morning raid on June 24, followed by a second raid the following day at the man’s home. The Manhattan District Attorney’s office confirmed that five family members face grand larceny and conspiracy charges for allegedly bilking the federal government out of $296,000 worth of food stamps.

Police stormed into the AKS Halal Deli and Grill at 319 E. 204th St. on June 24. The deli, popular in Norwood thanks to its family-friendly atmosphere, is one of a few to boast a large spread of hot food that’s purchased by regulars and passersby. Police say the owner, Ali Shahzad, 61, was taken into custody in the initial raid. Authorities later shut down the store, which remained closed until Thursday, June 30.

Neighbors were stunned to see the deli closed for days, its storefront lights out. An orange sticker placed by the NYPD read the owners were charged with fraud. Many residents took to the Norwood News’ comments section upon reading the online version of this article, with several well-wishers praising the deli.

“They have only provided stellar customer service and showed true care for their neighbors,” read a post by a commenter going by AKS Deli Frequent Customer. “Thankfully, AKS Deli is open now, and if God wills, this won’t happen again.”

Another commenter who went by China said the news was “sad to hear.” “[M]y prayers go out to that family. But you do the crime, you pay.”

One source claimed a second raid was conducted in the early morning hours of June 25 at the family’s three-story home at 3014 Bainbridge Ave.

Also arrested was Atif Shahzad, 25; Saqib Shahzad, 29; Samina Shahzad, 55, and Kashif Shahzad, 31, all of 3014 Bainbridge Ave. According to NYPD officials, the five individuals were arrested, “in regard to an ongoing investigation involving the illegal use [of] electronic benefit transactions (EBT).”

Benefits usually come in the form of an EBT debit card pre-loaded with benefits with a monetary value that runs between hundreds or thousands of dollars that’s replenished each month. Stores are barred from exchanging real cash for benefits that are debited upon swiping the card through an EBT reader. In the case of AKS Halal Deli, the deli had apparently been under suspicion since June 2012, with undercover officers making 14 visits to the store between May 2015 and May 2016 and buying some items not sanctioned for EBT purchase. Store clerks would illegally give the beneficiary a cash amount, somewhere between $40 and $60, in exchange for deducting a higher amount of benefits from their EBT card, according to the criminal complaint.

In one recorded transaction, an undercover officer had asked a clerk for $60 in cash following a transaction, but agreed to accept a lower amount after another clerk warned such a “large quantity on EBT would raise suspicion.”

“The defendants knowingly used, transferred, acquired, altered, purchased, transported and possessed food stamp program coupons, cards and devices which entitle a person to food stamps in a manner not authorized,” read the complaint.

In many instances, police wait long enough to build a substantial case against a suspect before closing in on the suspected thieves. Before officials revealed details of its one-year investigation, one source explained that undercover authorities “may continue to investigate for up to a year and a half. They come many times and the money is recorded and the conversations are recorded.”

According to Joan Vollero of the Manhattan District Attorney’s office, the investigation was conducted by the New York County District Attorney’s Office Squad and all of the defendants were arraigned in Manhattan Criminal Court and all posted bail set between $2,500 and $25,000.

Vollero added that the Manhattan District Attorney was involved in the prosecution because, “the SNAP transactions were processed by financial institutions or credit card processing companies located in New York County.”

Neighborhood sources also reported that the store would also allow the purchase of beer with food stamps until they stopped selling beer in 2013.

William Crowley, a spokesman for the State Liquor Authority (SLA) reported that Ali Shahzad was granted a license for beer sales at the A & S Grocery Store, but the license expired on Oct. 31, 2013, and the SLA had no reports of any violations.

When reached by telephone, Sam Shahzad, the owner’s son said, “The neighborhood is pretty happy we’re back,” adding, “We have customers that printed up T-shirts, and people are dancing in the store right now.”

“What’s done is done,” Shahzad continued, “The judge looked into these allegations and believed that they (the prosecution) went overboard in this case and he saw it like that and allowed us to reopen. But the case is ongoing.”

The five individuals who are all believed to have immigrated from Pakistan, face multiple counts of grand larceny, misuse of food stamp program coupons and conspiracy.

Additional reporting by David Cruz.

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Welcome to the Norwood News, a bi-weekly community newspaper that primarily serves the northwest Bronx communities of Norwood, Bedford Park, Fordham and University Heights. Through our Breaking Bronx blog, we focus on news and information for those neighborhoods, but aim to cover as much Bronx-related news as possible. Founded in 1988 by Mosholu Preservation Corporation, a not-for-profit affiliate of Montefiore Medical Center, the Norwood News began as a monthly and grew to a bi-weekly in 1994. In September 2003 the paper expanded to cover University Heights and now covers all the neighborhoods of Community District 7. The Norwood News exists to foster communication among citizens and organizations and to be a tool for neighborhood development efforts. The Norwood News runs the Bronx Youth Journalism Heard, a journalism training program for Bronx high school students. As you navigate this website, please let us know if you discover any glitches or if you have any suggestions. We’d love to hear from you. You can send e-mails to norwoodnews@norwoodnews.org or call us anytime (718) 324-4998.