Anthony M. Wong Chung C. Wong, Dba Rotary Grocery v. United States

The United States appeals the district court’s judgment overturning a sanction imposed by the Food and Nutrition Service (FNS). The sanction was imposed upon Anthony M. Wong and Chung C. Wong for violating the Food Stamp Act by selling ineligible items in exchange for food stamps. The United States contends (1) that the district court erred in reviewing the sanction imposed by the FNS de novo, rather than under an arbitrary and capricious standard; and (2) that the FNS-imposed sanction was neither arbitrary or capricious. We affirm the district court.

FACTS

Anthony M. Wong and his father, Chung C. Wong, own and operate Rotary Grocery, a retail store in Seattle, Washington. The Wongs were authorized to accept food stamps at their grocery in accordance with the Food Stamp Program which is operated by the Food and Nutrition Service (FNS) or. behalf of the Department of Agriculture. Because of the grocery’s high rate of food stamp redemption, the FNS suspected that the grocery was violating the Food Stamp Act by selling non-eligible items in exchange for food stamps. The FNS warned the Wongs that it believed violations were occurring which could cause disqualification from the Food…