Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.govBilly Cox (202)720-8998Billy.cox@ams.usda.gov
WASHINGTON, May 21, 2010 – The U.S. Department of Agriculture has cited Kalil Fresh Marketing Inc., d/b/a Houston’s Finest Produce Co., operating in Houston, Texas, for willful, repeated, and flagrant violations of the Perishable Agricultural Commodities Act (PACA).
As a result, the company cannot operate in the produce industry until May 4, 2012, and then only if it obtains a PACA license.
The company failed to make full payment promptly to 55 sellers of the agreed purchase prices, or balances thereof, in the amount of $1,617,014.93 for 645 lots of perishable agricultural commodities, which the company purchased, received, and accepted in the course of interstate and foreign commerce during the period of October 2007 through February 2008.
USDA served the company with a complaint and the company failed to file an answer.
The company’s principal, John C. Kalil, may not be employed by or affiliated with any PACA licensee until May 4, 2011, and then only with the posting of a USDA-approved surety bond. Two other principals are challenging their responsibly connected status.
The PACA establishes a code of good business conduct for the produce industry. Under it, all interstate traders in fresh and frozen fruits and vegetables must be licensed by USDA. USDA is authorized to suspend or revoke a trader’s license for violating the act.
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