A local grocery store is seeking to overturn its six-month suspension from participating in the Supplemental Nutrition Assistance Program, arguing that federal authorities relied on flawed investigative reports and failed to provide clear evidence of wrongdoing. The complaint was filed by CABA Deli Grocery Corp. in the United States District Court for the Eastern District of New York on March 27, 2026, naming the United States of America and the United States Department of Agriculture as defendants.
According to court documents, CABA Deli Grocery Corp., represented by attorneys Benjamin Sharav and Victor J. Molina, is challenging a decision by the Food and Nutrition Service (FNS) Administrative Review Branch that upheld a prior ruling disqualifying the store from SNAP participation for six months. The Final Agency Decision, dated February 25, 2026, followed an administrative review process initiated after FNS charged the retailer with accepting SNAP benefits for non-eligible items under 7 C.F.R. § 278.2(a).
The dispute centers on allegations stemming from undercover visits conducted by FNS investigators between January 24 and February 15, 2025. In a Charging Letter dated May 29, 2025, FNS accused CABA Deli Grocery Corp. of violating SNAP regulations but did not allege trafficking under section 278.6(e)(1). A subsequent letter dated June 25, 2025 informed the plaintiff that violations had been found and imposed a six-month disqualification period without eligibility for a hardship civil money penalty (CMP). The store promptly requested an administrative review on June 26, 2025.
CABA Deli Grocery Corp., through its president Elizabeth Caba, denies any misuse of SNAP benefits and asserts that key details in FNS’s investigative reports are ambiguous or missing. The complaint states: “The reports cited in the Decision are deficient in that they fail to clearly establish that any ineligible items were sold in exchange for SNAP benefits.” It further notes that during one undercover visit an investigator attempted to obtain cash using SNAP benefits but was refused by staff.
The legal filing highlights several concerns about due process and transparency in FNS’s investigation. Among them are redactions of both investigator identities and transaction times, which plaintiffs argue hinder their ability to respond effectively: “FNS also redacted the name of the investigator and even the time of day when purchases were made, making it difficult for respondent...to track down transactions for his response.” Plaintiffs also contend there is no evidence showing whether allegedly non-eligible items were actually charged to customers’ Electronic Benefit Transfer (EBT) accounts.
CABA Deli Grocery Corp. claims it has exhausted all available administrative appeals within USDA channels before turning to federal court as permitted under relevant regulations (7 C.F.R. § 279.7). The company seeks a de novo judicial review—meaning a fresh examination independent of previous agency findings—and requests that its disqualification be stayed pending resolution of this matter.
In addition to overturning or staying their exclusion from SNAP participation, plaintiffs ask for any other relief deemed appropriate by the court: “Grant such and other relief as the Court may deem proper.”
The complaint was prepared by attorneys Benjamin Sharav (BS-8536) and Victor J. Molina (VJM-1741), Law Office of Victor J. Molina, located at 930 Grand Concourse, Ste. 1A, Bronx NY 10451; telephone (718) 401-1600. The case is identified as Case No. 1:26-cv-01814.
Source: 126cv01814_Caba_Deli_Grocery_Corp_v_United_States_of_America_Complaint_Eastern_District_New_York.pdf