Release No.: 183-16
WASHINGTON, Nov. 22, 2016 – The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
- Steven Produce King Inc., operating out of Brooklyn, N.Y., for failing to pay a $38,583 award in favor of a Florida seller. As of the issuance date of the reparation order, Shy S. Yosofov was listed as the officer, director, and major stockholder of the business.
- New Taikong Wholesale Co. Inc., operating out of Salt Lake City, Utah, for failing to pay a $109,957 award in favor of a California seller. As of the issuance date of the reparation order, Tran Milan was listed as the officer, director, and major stockholder of the business.
- Southern California Produce Inc., operating out of South El Monte, Calif., for failing to pay a $12,104 award in favor of a California seller. As of the issuance date of the reparation order, Paul Tsan was listed as the officer, director, and major stockholder of the business.
- Foodland Distributors Inc., operating out of Kenilworth, N.J., for failing to pay a $17,830 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Glen D. Walters was listed as the officer, director, and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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 part of USDA’s Agricultural Marketing Service (AMS), 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 3,500 PACA claims involving more than $58 million. Our experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at PACAdispute@ams.usda.gov regarding this matter.
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