USDA/AMS Press Release:
The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
•United Foods Inc., operating out of Medley, Fla., for failing to pay a $2,726 award in favor of a North Carolina seller. As of the issuance date of the reparation order, Adrian Samaroo and Howard Teamkin were listed as the officers, directors and/or major stockholders of the business.
•CHK Corp., operating out of Bronx, N.Y., for failing to pay a $23,424 award in favor of a New York seller. As of the issuance date of the reparation order, Kil Chin Kim was listed as the officer, director and major stockholder of the business.
•Moza LLC, operating out of Moscow, Pa., for failing to pay a $24,165 award in favor of a Texas seller. As of the issuance date of the reparation order, David M. Martin was listed as a member of the business.
•J.R. Gaw Produce Co. Inc., operating out of Cookeville, Tenn., for failing to pay an $11,533 award in favor of an Illinois seller. As of the issuance date of the reparation order, Ronnie L. Gaw and Ronda A. Gaw were listed as the officers, directors and/or major stockholders of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.
The PACA Division, which is part of USDA’s Agricultural Marketing Service (AMS), regulates fair trading practices of produce businesses that are operating subject to PACA including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Our experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at PACAdispute@ams.usda.gov regarding this matter.
Contact Info: Nadine Wilkins, email@example.com, 202-720-8998
Release No.: 109-17
For more PACA violations reported by Blue Book Services: #PACAViolations