<p> The USDA has <B>restricted</b> the now defunct Alabama-based company Adams Produce from operating in the produce industry <B>until January 8, 2016</b>. The company has allegedly failed to pay <B>$10,735,186 to 51 sellers for 9,314 lots of produce</b> from August 8, 2011 through May 18, 2012.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> The company’s principals, <B>Steve Alexander</b>, API Holdings LLC, <B>Jonathan Dyer</b>, <B>Scott Grinstead</b>, and <B>Michael Rawlings</b>, may not be employed by or affiliated with any PACA licensee until <B>January 8, 2015</b>, and then only with the posting of a USDA-approved surety bond before being employed by or affiliated with a PACA licensee, according to a press release. Two other principals are challenging their responsibly connected status with the company.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Last month, we reported that <B>David Andrew Kirkland</b>, the former director of Adams Produce, was sentenced by the U.S. District Court to <B>serve a year and one day in federal prison</b> for his plea to conspiracy to defraud the government on contracts for fruits and vegetables. Five others were charged in a scheme to create false records that showed a higher cost for fruits and vegetables than was actually paid. These enlarged costs were then presented to the U.S. Federal Government, which had agreed to pay a certain amount over cost. Following the scandal, the company filed for re-organization under Chapter 11 in federal bankruptcy court in April 2013, and ultimately <B>ceased operations</b>.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> In the past three years, the USDA resolved approximately 4,600 claims under the PACA involving more than $87 million. Individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.ams.usda.gov/AMSv1.0" target="_new"> Agricultural Marketing Service</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
