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USDA Cites PK Produce Inc. in Ohio for PACA Violations

USDA Cites PK Produce Inc. in Ohio for PACA Violations

WASHINGTON, DC - As it continues to ensure fair trading practices within the United States, the U.S. Department of Agriculture (USDA) has imposed sanctions on PK Produce, operating out of Canton, Ohio, for failing to meet its contractual obligations to the sellers of produce it purchased under the Perishable Agricultural Commodities Act (PACA).

Direct from the USDA Agricultural Marketing Service:

These sanctions include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA. By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

PK Produce Inc., failed to pay $827,222 to 14 sellers for produce that was purchased, received, and accepted in interstate commerce from November 2017 to October 2018. This is in violation of the PACA. PK Produce Inc. cannot operate in the produce industry until August 31, 2022, and then only after they apply for and are issued a new PACA license by USDA.

The company’s principal, Paul Kasapis, may not be employed by or affiliated with any PACA licensee until Aug. 31, 2021, 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 a part of AMS’ Fair Trade Practices Program, 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. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

For more information and to read the press release in its entirety, please visit the link here.

USDA's Agricultural Marketing Service

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