The U.S. Department of Agriculture (USDA) has imposed sanctions on Kendall Frozen Fruits Inc. (KFF), Newport Beach, Calif., for violating the Perishable Agricultural Commodities Act (PACA).
These sanctions include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA.
KFF failed to pay $2,166,335 to two sellers for produce that was purchased, received and accepted in interstate commerce from May 2017 to July 2018. This is in violation of the PACA. KFF cannot operate in the produce industry until April 2, 2023, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principal, Susan Kendall, may not be employed by or affiliated with any PACA licensee until April 2, 2022, and then only with the posting of a USDA approved surety bond. The company’s other principal, Brian Klein, has challenged his responsibly connected status.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period.
Those individuals, including sole proprietors, partners, members, managers, officers, directors or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.
For further information, contact Corey Elliott, Chief, Investigative Enforcement Branch, at (202) 720-6873 or PACAInvestigations@usda.gov.
