Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.govBilly Cox (202)720-8998Billy.cox@ams.usda.gov
WASHINGTON, Feb. 17, 2010 - The U.S. Department of Agriculture has cited four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
These businesses have been barred from operating in the produce industry until their awards are paid. The businesses were served complaints by USDA and were given the opportunity to respond. USDA subsequently ordered payment of the amounts mentioned below.
The businesses are:
--H & H Distributing Company Incorporated, also doing business as H & H Foodservice, operating in West Union, Iowa, for failing to pay a $16,559 award in favor of a Minnesota seller. The officers, directors, and major stockholders are Sandra K. Baldwin, Ruth L. Hansen, and Donald E. Hansen Estate.
--Riley Produce Inc., operating in Raleigh, N.C., for failing to pay a $7,489 award in favor of a South Carolina seller. The officers, directors, and major stockholders are Flavio Gonzalez and Delia Gonzalez.
--Fresh World VA-A Inc., also doing business as Fresh World, operating in Reston, Va., for failing to pay a $42,348 award in favor of a Maryland seller. The sole officer, director, and stockholder is Charles C. Kim.
--D Kastner Produce, operating in Brookfield, Wis., for failing to pay a $12,877 award in favor of a Wisconsin seller. The sole proprietor is David M. Kastner.
PACA provides for damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. Interstate produce traders operating as commission merchants, dealers or brokers, and conducting a sufficient volume of business must be USDA-licensed.
USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it. Individuals, partners, members, officers, directors, or major stockholders associated with these businesses may not be employed by or affiliated with any PACA licensee without USDA-approval.
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