CKF Produce Corp., New York, faces a possible ban from the industry for up to three years under the Perishable Agricultural Commodities Act.
According to the U.S. Department of Agriculture, which oversees PACA, CKF allegedly failed to pay 22 produce sellers $916,442 from March 2017 to November 2018. The USDA has filed a Notice to Show Cause and complaint under PACA, a step in the process that would bar the company from doing business in the produce industry.
“USDA asserts that CKF is unfit to be licensed under PACA due to the alleged violations,” according to a USDA news release.
CKF can request a hearing. If the USDA finds the company “committed repeated and flagrant violations,” CKF would be barred from the industry as a licensee for three years, or two years with the posting of an surety bond approved by the USDA.
Principals in the company can be barred from the industry as well, for up to two years, or one, with an approved surety bond, according to the release.