In its administrative action, the USDA alleges Khalid Mohmand, Denver, failed to pay 12 produce sellers a total of $499,905 for produce bought from September 2010 to May 2012.
Mohmand can request a hearing, but if he is found responsible for violating the PACA, he will lose his PACA license for two years and be unable to work for any PACA licensee for a year.
The USDA also sanctioned two companies for failing to pay PACA reparation awards:
- Burnand And Co. Inc., Rio Rico, Ariz., for failing to pay $54,008 to an Arizona seller. The responsibly connected officers are Kenneth Olmos and Frances Olmos.
- Original Defeo Produce Inc., Kansas City, Mo., for failing to pay $21,095 to a Pennsylvania seller. The responsibly connected officer is Nicholas Defeo.