WASHINGTON - The U.S. Department of Agriculture (USDA) has imposed sanctions on two PACA violators in Florida and Connecticut for failure to pay reparation awards.
The following businesses and individuals are currently restricted from operating in the produce industry, according to a USDA press release.
- M K Produce Inc., a Tampa, Florida-based company, has allegedly failed to pay a $15,291 award in favor of a New Mexico seller. As of the issuance date of the reparation order, Byeong Suns Ha and Joo Kyung Lee were listed as the Officers, Directors, and/or major stockholders of the business.
- Connecticut Fresh Inc., a Stamford, Connecticut-based company, was barred for failing to pay a $282,169 award in favor of a Georgia seller. As of the issuance date of the reparation order, Nick Bakes was listed as the Officer, Director, and major stockholder of the business. The other principal of the business at the time of the order was Kristina Bakes. She has challenged her responsibly connected status.
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 principles 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 4,250 PACA claims involving more than $77 million. USDA experts have also assisted more than 7,000 callers with issues valued at approximately $110 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.
