WASHINGTON, Oct. 5, 2011 – The U.S. Department of Agriculture (USDA) has cited Chloe Foods Corp., d/b/a Chloe Food Manufacturing (Chloe Foods) of Brooklyn, N.Y., for failure to pay seven sellers totaling $1,391,439.47 for 266 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA).
As a result of these actions, the USDA and Chloe Foods have entered into a consent decision and Chloe Foods cannot operate in the produce industry until Sept. 22, 2013, at which time it may reapply for a PACA license.
The company’s principals, Chloe Kontogiannis, BRF Acquisition LLC, Annette Apergis, and Andrew Themis may not be employed by, or affiliated with, any PACA licensee until Sept. 22, 2012, and then only with the posting of a USDA-approved surety bond.
Under PACA provisions, those individuals held responsibly connected to PACA violations, including sole proprietors, partners, members, officers, directors, and stockholders, may not be employed by or affiliated with any PACA licensee without USDA-approval.
The Agricultural Marketing Service (AMS), PACA Branch, regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. The USDA is authorized to suspend or revoke a company’s license for violations of the PACA. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.
In fiscal year 2010, USDA resolved approximately 2,000 claims filed under the PACA involving $30 million. This is just one more way the USDA continues to support the fruit and vegetable industry.
For further information, contact Phyllis Hall, 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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