The U.S. Department of Agriculture has imposed sanctions on three produce businesses for failing to pay reparation awards issued under the Perishable Agricultural Commodities Act.
These businesses and individuals are restricted from operating in the produce industry, according to a news release:
- Niagara Foods Inc., doing business as Quality Brands, Middleport, N.Y., for failing to pay a $162,054 award in favor of a Michigan seller. The responsibly connected officers, directors, and major stockholders are Stephen Hamilton, Stanley Schneider, Barry Schneider, Patricia Schneider and Stanley Schneider Trust.
- Riley Produce Inc., Raleigh, N.C., for failing to pay a $23,810 award in favor of a Virginia seller. The responsibly connected officers, directors, and major stockholders are Flavio Gonzalez and Delia Gonzalez.
- Somerset Industries Inc., doing business as Spring House Frozen Foods, Spring House, Pa., for failing to pay a $4,900 award in favor of a Maryland seller. The responsibly connected officers, directors, and major stockholders are Alan Breslow, Jay Shrager, and Carole Shrager.
The USDA also cited The Kinoko Co., Oceanside, Calif., for unlawful affiliation with Craig Anderson, who previously violated the PACA, according to a news release.
The company unlawfully affiliated with Anderson during his sanction period for his involvement in Golden Gourmet Mushrooms. Golden Gourmet was cited for misrepresenting the country of origin of mushrooms, a violation of the PACA.
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The Kinoko Co. cannot operate in the produce industry until Feb. 4, 2013. The company’s sole principal, Dylan Anderson, may not be employed by or affiliated with any PACA licensee until Feb. 4, 2012, and then only with the posting of a USDA-approved surety bond, according to the release.
Craig Anderson may not be employed by or affiliated with any PACA licensee from Feb. 4, 2011, through Feb. 4, 2012. After this period, he may again be employed with the posting of a USDA-approved surety bond.
The USDA also found Nagi Habib responsibly connected to J&N Produce Inc., Detroit, which failed to pay 20 sellers for 589 lots of produce totaling $256,824, according to a news release. This violates the PACA.
Habib may not be employed by or affiliated with any PACA licensee until March 7, 2012, and then only with the posting of a USDA-approved surety bond, according to the release.
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