WASHINGTON, Aug. 29, 2013 – The U.S. Department of Agriculture (USDA) filed an administrative action under the Perishable Agricultural Commodities Act (PACA) against Khalid A. Mohmand, d/b/a Green Farms Produce.
Khalid A. Mohmand, d/b/a Green Farms Produce, operating from Colorado, allegedly failed to make payment to 12 produce sellers in the amount of $499,905 from September 2010 through May 2012.
Green Farms Produce will have an opportunity to request a hearing. Should USDA find that Green Farms Produce committed repeated and flagrant violations, Mohmand would be barred from obtaining a PACA license for two years. Furthermore, he could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.
The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA. 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.
In the past three years, USDA resolved approximately 5,000 claims filed under PACA involving $96 million. This is one way USDA supports the fruit and vegetable industry.
For further information, contact Josephine E. Jenkins, Chief, Investigative Enforcement Branch, at (202) 720-6873, by fax at (202) 720-8868, or by email at InvestigativeEnforcement@ams.usda.gov.
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