The U.S. Department of Agriculture has cited SK Foods LP, Lemoore, Calif., for failure to make full payment to 12 sellers for 46 lots of produce totaling $594,705.96. This is in violation of the Perishable Agricultural Commodities Act.
As a result, the USDA and SK have entered into a consent decision and the company cannot operate in the produce industry until Dec, 8, 2012, at which time it may reapply for a PACA license, according to a news release.
Two of the company’s principals, Scott Salyer and Mark McCormick, may not be employed by, or affiliated with, any PACA licensee until Dec. 8, 2011, and then only with the posting of a USDA-approved surety bond.
The USDA also imposed sanctions on four produce businesses for failure to pay reparation awards issued under the PACA.
These businesses and individuals are restricted from operating in the produce industry, according to a news release:
- Cabello Produce Corp., Hidalgo, Texas, for failing to pay a $11,000 reparation award in favor of a California seller. The responsibly connected officer, director, and major stockholder is Jorge Cabello.
- Richard Brown, Mesa, Ariz., for failing to pay a $157,769.54 reparation award in favor of an Idaho seller. The responsibly connected sole proprietor is Richard Brown.
- Best Buy, Pittsburg, Calif., for failing to pay a $5,623.50 award in favor of a California seller. The responsibly connected sole proprietor is Roberto Rodriguez.
- Selected Produce Associates Inc., Chula Vista, Calif., for failing to pay a $27,266.38 award in favor of a California seller. The responsibly connected officer, director, and major stockholder is Fernando Godoy.