WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Brooklyn, New York-based Steven Produce King Inc., for failing to pay a $38,583 award in favor of a Florida seller. As of the issuance date of the reparation order, Shy S. Yosofov was listed as the Officer, Director, and Major Stockholder of the business.
- Salt Lake City, Utah-based New Taikong Wholesale Co. Inc., for failing to pay a $109,957 award in favor of a California seller. As of the issuance date of the reparation order, Tran Milan was listed as the Officer, Director, and Major Stockholder of the business.
- South El Monte, California-based Southern California Produce Inc., for failing to pay a $12,104 award in favor of a California seller. As of the issuance date of the reparation order, Paul Tsan was listed as the Officer, Director, and Major Stockholder of the business.
- Kenilworth, New Jersey-based Foodland Distributors Inc., for failing to pay a $17,830 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Glen D. Walters was listed as the Officer, Director, and Major Stockholder of the business.
USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Its experts also assisted more than 8,000 callers with issues valued at approximately $140 million.
