ST. LOUIS, MO – A grocery store owner from Ohio has been indicted and arrested for allegedly defrauding a Missouri-based supermarket chain out of more than $15 million in inventory, then sabotaging the company’s property to obstruct payment collection efforts.
Muhammad Babar Chaudhry, 46, was indicted on July 23 by a federal grand jury in St. Louis on four counts of wire fraud and arrested Wednesday night. At a detention hearing held Friday in U.S. District Court in Detroit, a judge ordered Chaudhry held in jail pending trial.
According to the indictment, Chaudhry operates Sunshine Stores LLC, a grocery chain in southern Ohio. In May 2021, he entered into a licensing agreement with a Missouri grocery company, allowing him to operate 38 stores under their brand and receive inventory from them.
By March 2023, prosecutors say Chaudhry began ordering massive quantities of inventory—$7.6 million that month alone—with no intent to pay. The following month, he ordered another $7.5 million in goods. When questioned about non-payment, he allegedly instructed employees to mislead the Missouri company, first claiming he was out of the country, and later blaming “fraudulent activity” for the missing funds.
Prosecutors allege Chaudhry drained his bank accounts to prevent payment and falsely claimed to have wired money that was never sent. In a detention motion, authorities also accused Chaudhry of sabotaging the Missouri grocery stores, including removing copper valued at $1 million and pouring concrete down sinks and drains.
No trial date has been set.
—
Key Points
- Muhammad Babar Chaudhry allegedly defrauded a Missouri grocery chain out of more than $15 million
- Prosecutors say he misled the company, drained his bank accounts, and faked payment attempts
- He is also accused of sabotaging stores by removing copper and damaging plumbing systems
