The U.S. Department of Agriculture has filed an administrative complaint against The Fruit Club, Sioux Falls, S.D., for violations of the Perishable Agricultural Commodities Act.
The Fruit Club allegedly failed to pay $367,040 to four produce sellers from June 2016 to October 2017, according to a USDA news release.
The Fruit Club can request a hearing. If the USDA finds the company violated the PACA, it could be barred from the industry as a PACA licensee for three years, according to the news release, or two years with the posting of an approved surety bond.
The company’s principals could be banned from the industry for up to two years, according to the release, or one with a USDA-approved surety bond.