The U.S. Department of Agriculture cited two related companies for failing to pay for produce, a violation of the Perishable Agricultural Commodities Act.
The USDA sanctioned Custom Cuts Inc. for failing to pay $9,899 for one lot of produce. The USDA previously filed action against CCI for failing to pay $217,128 for produce bought in 2008-09, The Packer reported in June.
Custom Cuts Fresh LLC also was sanctioned for failing to pay eight sellers $976,399 for 144 lots of produce bought from November 2010 through July 2011.
Both companies are based in Milwaukee.
As a result of the citation, both companies cannot operate in the industry until Dec. 19, 2014. The responsibly connected individual listed, Bradley Beckman, can’t work in the industry for a year, and then only with an USDA-approved bond.
Patrick Family Farms LLC., Omega, Ga., posted a $20,000 surety bond in order to obtain a PACA license and operate in the industry.
The bond followed Patrick Family Farms’ involvement in bankruptcy.