- Elizabeth Larson
- Posted On
Lakeview Supermarket allowed to once again accept food stamp payments; business appealing fine
LUCERNE, Calif. – A Lucerne market is going to once again be able to participate in the federal food stamp program, but it’s appealing a requirement that it to pay a nearly $60,000 fine.
Lakeview Supermarket and Deli owner Kenny Parlet told Lake County News that his business is being offered the chance to once again accept US Department of Agriculture Food and Nutrition Service Supplemental Nutrition Assistance Program – or SNAP – payments for groceries.
Parlet had been notified the week before Thanksgiving that he was being “permanently disqualified” from the program based on allegations that one of his employees had participated in “trafficking” – which, under the USDA definition, means exchanging benefits for cash, as Lake County News has reported.
There were four incorrectly handled transactions totaling $132.50. A small portion of that overall total was for ineligible items and cash back, according to Parlet. Only one employee was involved and her employment has since been terminated.
The permanent disqualification was a hefty blow for Parlet, who expected to lose about half a million dollars annually, or about 25 percent of his total yearly sales, if he couldn’t participate in the USDA’s Food and Nutrition Service program.
With the help of Congressman Mike Thompson’s office, Parlet appealed the decision, which came in the wake of the USDA’s announcement last summer that it was cracking down on abuses of SNAP benefits.
Parlet received a letter from USDA dated Dec. 20, informing him that the agency is granting his request for a civil monetary penalty in lieu of permanent disqualification, as the USDA had concluded that Lakeview Supermarket did, in fact, have in place a training program on how to accept the benefits.
However, the USDA found there were violations at the store and, as a result, is requiring that Parlet pay a $59,000 fine which is due in 30 calendar days of the receipt of his letter, otherwise he’s barred from the program.
He also must submit a collateral bond or irrevocable letter of credit for $4,075 to the USDA Food and Nutrition Service, and maintain that bond or letter continuously for five years.
Parlet said he is asking for a review of the fine decision, citing federal regulations that allow for a warning letter to be sent after a violation that doesn’t warrant disqualification.
Based on the USDA’s letter, if Parlet submitted a written request for review within 10 days, the fine payment will be temporarily stayed while the review moves forward.
Parlet said he was never warned of the violations before being disqualified. The USDA’s Dec. 20 letter to him does not reference a warning, but does mention a charge letter sent to him late in October before it sent the subsequent letter in November notifying him of his disqualification.
If the USDA review that Parlet has requested fails to remove the fine, Parlet said he must then take the matter to federal court.
In his request for a review to the USDA, Parlet said that for him paying the fine is “impossible.”
At the same time that he’s facing the possibility of having to pay the fine, Parlet estimated he’s lost about $60,000 in sales since the initial disqualification decision in November.
He also had been required to return the electronic benefits transfer equipment for the food stamp program, but expects to have the equipment back within the next few days so he can resume accepting SNAP benefits.
Despite the setbacks, Parlet thanked his customers for their kindness and consideration, noting that it was a “relatively successful holiday season” despite not being able to participate in the food stamp program for the last month and a half.
“Lakeview Supermarket really wishes to thank all those people and local businesses that went above and beyond to support us during this most challenging period in our long history,” he said.
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