Oddfellows Food & Liquor owner sues United States over SNAP disqualification decision

Jefferson Courthouse Green Bay
Jefferson Courthouse Green Bay
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A dispute over a six-month ban from participating in the Supplemental Nutrition Assistance Program has led a Wisconsin convenience store owner to seek judicial review of a federal agency’s decision. The complaint was filed on April 14, 2026, in the United States District Court for the Eastern District of Wisconsin by Jay Goga Maharaj, Inc., owner of Oddfellows Food & Liquor, against the United States of America.

According to court documents, Jay Goga Maharaj, Inc. alleges that the U.S. Department of Agriculture’s Food and Nutrition Service (FNS) improperly imposed a six-month disqualification on Oddfellows Food & Liquor following allegations that the store accepted SNAP benefits in exchange for ineligible items. The final agency decision (FAD), dated April 8, 2026, followed an investigation and administrative proceedings related to an incident where coffee filters were sold to a SNAP recipient.

The complaint outlines that Oddfellows Food & Liquor has served as an authorized SNAP retailer at its location on Main Street in Racine, Wisconsin. The store asserts it has consistently trained employees regarding SNAP rules and properly supervised all transactions involving program benefits. Plaintiff states that most items sold at the store are eligible under SNAP guidelines and maintains that coffee filters are not defined as “common ineligible items” under current FNS regulations or guidance.

On January 5, 2026, FNS sent Oddfellows Food & Liquor a letter charging it with accepting SNAP benefits for “common ineligible items,” specifically referencing the sale of coffee filters on June 6, 2025. After responding to this charge later that month, Oddfellows Food & Liquor received an initial determination from FNS on February 12, 2026. This determination found violations had occurred and imposed a six-month disqualification from SNAP participation without issuing a warning or assessing a hardship civil money penalty (CMP).

The plaintiff sought administrative review but reports that FNS’s Administrative Review Officer Robert Deegan affirmed the original decision through the final agency determination issued on April 9, 2026. According to the complaint, “the FAD failed to address Oddfellows Food & Liquor’s argument that a single box of coffee filters is not ‘common ineligible items.'” The review officer also concluded that management failed to properly train or supervise employees: “Had an effective compliance policy and program been in effect at the firm…it is unlikely that these employees would have made such an obvious mistake.” The plaintiff disputes this finding and argues there is no evidence supporting claims of poor supervision or carelessness.

Jay Goga Maharaj, Inc. contends that FNS did not conduct independent analysis or adequately consider whether other nearby stores offered comparable staple food selections at similar prices—a requirement under federal regulations when considering hardship CMPs instead of disqualification. The complaint states: “FNS’s use of a one-mile radius…for determining whether other stores…sold as many staples at comparable prices was arbitrary and capricious.” Plaintiff also alleges FNS relied on undisclosed analyses about other retailers without sharing those records with Oddfellows Food & Liquor.

The lawsuit requests de novo judicial review—meaning new consideration by the court rather than relying solely on administrative records—of both the final agency decision and denial of requests for warnings instead of suspension. Among other remedies sought are reversal and vacating of both decisions; declarations that current FNS policies regarding data collection are arbitrary; preliminary and permanent injunctions preventing enforcement during litigation; direction for FNS to issue only warning letters if warranted; attorneys’ fees; and any further relief deemed appropriate by the court.

The case identifies Stewart D. Fried of Olsson Frank Weeda Terman Matz PC as attorney for Jay Goga Maharaj, Inc., with case number 2:26-cv-00643.

Source: 226cv00643_Jay_Goga_Maharaj_Inc_v_United_States_of_America_Complaint_Eastern_District_Wisconsin.pdf



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