WASHINGTON, Jan. 4, 2013 – The U.S. Department of Agriculture (USDA) has cited Custom Cuts Inc. (CCI) and Custom Cuts Fresh LLC (CCF), of Milwaukee, Wis., for failure to pay for produce.
CCI failed to pay $9,899.25 to a seller for one lot of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). CCF failed to pay $976,398.92 to eight sellers for 144 lots of produce. As a result of these actions, CCI and CCF cannot operate in the produce industry until Dec. 19, 2014, at which time it may reapply for a PACA license.
The company’s sole principal, Bradley V. Beckman, may not be employed by or affiliated with any PACA licensee until Dec. 19, 2013, 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 Division, 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 AMS, an agency within USDA.
In the past three years, USDA resolved approximately 5,000 claims filed under the PACA involving $96 million. This is just one more way USDA continues to support the fruit and vegetable industry.
For further information, contact Josephine E. Jenkins, Acting Chief, Investigative Enforcement Branch, at (202) 720-6873, by fax at (202) 720-8868, or by email atInvestigativeEnforcement@ams.usda.gov.
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