779 F. Supp. 2d 191
D. Me.2011Background
- In March 2008, Hajifarah and Hirad purchased the African Store in Lewiston, Maine, and began operating it; the store opened to SNAP participation in March–May 2008.
- Store is small, family-operated, with little or no staff; majority of customers are Somali and purchase bulk staple foods.
- Store specializes in Somali halal items; it does not stock alcohol or tobacco; prices are fixed with no haggling.
- The store’s SNAP transactions are processed via EBT with a single POS terminal, and customers must use a PIN in the presence of the device; receipts are split between EBT and cash registers.
- USDA conducted a multi-stage investigation into trafficking hypotheses based on ALERT data and store visits, culminating in a September 2009 disqualification and a December 2009 final agency decision to permanently disqualify the store from SNAP.
- Plaintiffs challenged the agency’s findings in a de novo federal review proceeding under 7 U.S.C. § 2023(a)(13) seeking reversal of the disqualification.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the agency’s trafficking finding and permanent disqualification were valid. | Hajifarah & Hirad contended evidence did not prove trafficking. | USDA presented patterns from ALERT data and investigations showing trafficking. | Agency findings upheld; conviction of trafficking sustained. |
| What burden of proof applies in the de novo review of agency action. | Plaintiffs bore burden to prove invalid action. | Agency action reviewed de novo; burden on plaintiffs to prove invalidity. | Court adopts preponderance standard for invalidity; agency action upheld. |
| Whether the record supports the three trafficking categories cited in the Charge Letter. | Plaintiffs offered explanations (bulk buying, rides) not convincingly refuting allegations. | Detailed transaction data and observational evidence support trafficking categories. | Record supports all three trafficking categories; disqualification affirmed. |
Key Cases Cited
- United States v. First City National Bank, 386 U.S. 361 (U.S. 1967) (trial de novo standard allows considering extra-record evidence)
- Fells v. United States, 627 F.3d 1250 (7th Cir. 2010) (de novo review; agency decisions reviewed anew on the record)
- Ibrahim v. United States, 834 F.2d 52 (2d Cir. 1987) (court may consider any relevant evidence, not limited to the administrative record)
- Redmond v. United States, 507 F.2d 1007 (5th Cir. 1975) (preponderance standard for invalid agency action; evidentiary burden on plaintiffs)
- McGlory v. United States, 763 F.2d 309 (7th Cir. 1985) (burden-shifting framework for challenging agency determinations)