USDA cites firms for PACA actions - The Packer

USDA cites firms for PACA actions

03/31/2014 04:21:00 PM
Daniel Vanderhorst

The U.S. Department of Agriculture has cited several companies and individuals for violations of the Perishable Agricultural Commodities Act, according to a USDA release.

  • Khalid Mohmand, doing business as Green Farms Produce, Denver, for failing to pay $499,905 to 12 sellers for 129 lots of produce. Mohmand is now barred from operating in the produce industry until Feb. 25, 2016, at which time he may apply for a PACA license. Mohmand also may not be employed by or affiliated with any PACA licensee until Feb. 25, 2015, and then only with the posting of a USDA-approved surety bond.
  • Osteen Marketing LLC, Waupun, Wis., for failing to pay $447,519 to six sellers for 45 lots of produce. Osteen Marketing cannot operate in the produce industry until Feb. 19, 2016, at which time it may apply for a PACA license. Additionally, the company’s sole principal, William Osteen, may not be employed by or affiliated with any PACA licensee until Feb. 19, 2015, and then only with the posting of a USDA-approved surety bond.
  • Quality Produce Suppliers Inc., Chicago, for failing to pay $617,811 to 16 sellers for 117 lots of produce. Quality Produce Suppliers Inc. cannot operate in the produce industry until Jan. 6, 2016, at which time it may apply for a PACA license. Additionally, the company’s principal, Richard Srum, may not be employed by or affiliated with any PACA licensee until Jan. 6, 2015, and then only with the posting of a USDA-approved surety bond.

Additionally, USDA has filed a PACA administrative action against DeBruyn Produce Co., Weslaco, Texas, according to a release. The company allegedly failed to make payment to 13 produce sellers in the amount of $710,958 from April 2010 through December 2012. DeBruyn Produce Co. will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.



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