NEWARK— The owner of four dollar stores in Essex and Union counties pleaded guilty today to defrauding the food stamp program out of $5 million by letting customers use the federal subsidy to pay for electronic devices and other non-food items, prosecutors say.

Muhammed Farooq, 49, of the Somerset section of Franklin Township, faces up to seven years in prison when he’s sentenced on Jan. 6, Acting Essex County Prosecutor Carolyn Murray said.

Farooq pleaded guilty before Superior Court Judge Michael Ravin to a single count of theft by deception as part of a plea deal with Essex County prosecutors.

“The food stamp program is designed to help struggling families,” said Deputy Chief Assistant Prosecutor Walter Dirkin, who heads the office’s financial crimes unit. “By misusing the program, this defendant and the food stamp recipients who participated in this illegal scheme are stealing taxpayer money.”

Farooq has agreed to turn over $832,830 and still faces a civil lawsuit filed by the U.S. Department of Agriculture seeking the remainder of the $5 million.

Farooq was arrested in May on charges of money laundering, theft by deception and unauthorized use of food stamp benefits cards.

Prosecutors said that over a 2 1/2 –year period starting in November 2010, Farooq illegally accepted food stamps at stores in Newark, East Orange and Elizabeth.

Farooq owned Dollar Worth and Dollar Industry in Newark as well as Dollar Class in Elizabeth and Dollar Time in East Orange.

Investigators from the Essex County Prosecutors Office, Homeland Security Investigations and the Department of Agriculture’s Office of Inspector General Investigations North East region particpated in the probe.

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