WASHINGTON, May 24, 2010 – LBD Produce Inc. (LBD), a New York-based produce company, has paid a $300,000 civil penalty for violations relating to the Perishable Agricultural Commodities Act (PACA), a statute governing fair trade in the produce industry. LBD and three individuals, John Thomas, Michael Hirsch, and Randall Berger, entered into a consent decision with the USDA to settle the complaint filed against them for unlawful affiliation between LBD and each of the individuals. The individuals were under employment sanctions after each was found to be responsibly connected to Kleiman and Hochberg Inc. when Kleiman and Hochberg committed previous PACA violations. The decision and order finding that Kleiman and Hochberg willfully, flagrantly, and repeatedly violated Section 2(4) of the PACA, and ordering the revocation of Kleiman and Hochberg Inc.’s PACA license, became final and effective on Dec. 7, 2007.
According to PACA Branch Chief Karla Whalen, subsequent to the findings that John Thomas, Michael Hirsch, and Randall Berger were responsibly connected to Kleiman and Hochberg when it committed PACA violations, each individual was barred from operating and/or being employed by a PACA licensee for one year; and thereafter, could only be employed while under a surety bond approved by the USDA. Under the consent decision, in addition to paying the civil penalty, LBD posted a $50,000 bond for Randall Berger, and extended the existing $300,000 bonds for both John Thomas and Michael Hirsch.
The Perishable Agricultural Commodities Act establishes a code of good business conduct for the produce industry. Under this act, all interstate traders in fresh and frozen fruits and vegetables must be licensed by the USDA. The USDA is authorized to suspend or revoke a trader’s license for violating the act.
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