The U.S. Department of Agriculture (USDA) has cited G K Produce Inc., operating out of Philadelphia, Pa., for failure to pay for produce.
The company failed to pay $548,441 to eight sellers for produce which was purchased, received and accepted in interstate commerce from November 2013 through March 2014. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, G K Produce Inc. cannot operate in the produce industry until Oct. 18, 2020, at which time they may reapply for a PACA license.
The company’s principal, Gary M. Klinghoffer, may not be employed by or affiliated with any PACA licensee until Oct. 18, 2019, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.