Wheatley Deli is fighting a six-month ban on the use...

Wheatley Deli is fighting a six-month ban on the use of SNAP benefits at the store after an undercover sting by the U.S. Department of Agriculture. Credit: James Carbone

A Wheatley Heights deli is suing the federal government to fight a ban agricultural officials imposed after an undercover sting showed the store let customers buy ineligible items with Supplemental Nutrition Assistance Program benefits.

The federal lawsuit, filed May 16 in the Eastern District, requests a stay of a six-month ban on accepting SNAP benefits at the Colonial Springs Road store and then for a judge to either vacate the penalty or reduce it to a fine after further review.

SNAP, formerly known as food stamps, helps low-income individuals buy food. 

Court records show sting operatives bought ineligible items from two clerks four separate times between February and March of 2022. The items were plastic cups, paper towels, sponges, dishwashing liquid, toilet cleanser and laundry detergent.

U.S. Department of Agriculture officials could have meted out a financial penalty if they had found a ban would create a hardship for SNAP-eligible households in the area. But the agency said the deli didn't qualify for a financial penalty because there are other “authorized retail stores in the area selling as large a variety of staple foods at comparable prices."

USDA administrative review officer Robert Deegan confirmed the ban in his final decision in April, noting the “basic concept of ‘if you can’t eat it, you can’t buy it using SNAP’ is not a difficult one for employees to grasp” and that the business didn't do proper training and monitoring. Deegan didn't respond to requests for comment.

Owner Fahad Khalil’s lawsuit said his deli had no previous violations and had trained employees on SNAP requirements. The court filing also said the sale of ineligible items was “an inadvertent mistake and not as a result of store ownership and/or management being inattentive.”

Khalil’s attorney, Jeremy Feigenbaum, said in a statement that the USDA used a “heavy-handed approach" and pointed out the agency often works “as adversaries rather than partners” when investigating violations.

The Manhattan lawyer added that the agency's actions most heavily impact smaller stores in “economically disadvantaged communities, whose customers depend on SNAP.” Feigenbaum said his client should have gotten a warning.

The lawsuit said Khalil will suffer financial hardship from the loss of SNAP purchases, which he said average $15,000 to $20,000 a month and make up approximately 30% to 35% of the deli’s revenue.

The continued ban also would harm the community, including elderly customers and those without transportation to other qualifying stores, a customer said last week.

“This business has maintained a level of consistency when it comes to the community so they shouldn’t be penalized,” said Wyandanch resident Evalina Robinson. “Obviously, you have people who take advantage … but it’s not like they were buying alcohol with it.”

A Wheatley Heights deli is suing the federal government to fight a ban agricultural officials imposed after an undercover sting showed the store let customers buy ineligible items with Supplemental Nutrition Assistance Program benefits.

The federal lawsuit, filed May 16 in the Eastern District, requests a stay of a six-month ban on accepting SNAP benefits at the Colonial Springs Road store and then for a judge to either vacate the penalty or reduce it to a fine after further review.

SNAP, formerly known as food stamps, helps low-income individuals buy food. 

Court records show sting operatives bought ineligible items from two clerks four separate times between February and March of 2022. The items were plastic cups, paper towels, sponges, dishwashing liquid, toilet cleanser and laundry detergent.

U.S. Department of Agriculture officials could have meted out a financial penalty if they had found a ban would create a hardship for SNAP-eligible households in the area. But the agency said the deli didn't qualify for a financial penalty because there are other “authorized retail stores in the area selling as large a variety of staple foods at comparable prices."

USDA administrative review officer Robert Deegan confirmed the ban in his final decision in April, noting the “basic concept of ‘if you can’t eat it, you can’t buy it using SNAP’ is not a difficult one for employees to grasp” and that the business didn't do proper training and monitoring. Deegan didn't respond to requests for comment.

Owner Fahad Khalil’s lawsuit said his deli had no previous violations and had trained employees on SNAP requirements. The court filing also said the sale of ineligible items was “an inadvertent mistake and not as a result of store ownership and/or management being inattentive.”

Khalil’s attorney, Jeremy Feigenbaum, said in a statement that the USDA used a “heavy-handed approach" and pointed out the agency often works “as adversaries rather than partners” when investigating violations.

The Manhattan lawyer added that the agency's actions most heavily impact smaller stores in “economically disadvantaged communities, whose customers depend on SNAP.” Feigenbaum said his client should have gotten a warning.

The lawsuit said Khalil will suffer financial hardship from the loss of SNAP purchases, which he said average $15,000 to $20,000 a month and make up approximately 30% to 35% of the deli’s revenue.

The continued ban also would harm the community, including elderly customers and those without transportation to other qualifying stores, a customer said last week.

“This business has maintained a level of consistency when it comes to the community so they shouldn’t be penalized,” said Wyandanch resident Evalina Robinson. “Obviously, you have people who take advantage … but it’s not like they were buying alcohol with it.”

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