Maxsun Produce Corp. Cited by USDA for Failure to Pay Over $1 Million in Obligations
WASHINGTON D.C. - The USDA has cited Maspeth, NY based Maxsun Produce Corp. for failure to pay $1,018,384 to 23 sellers for 191 lots of produce, a violation of PACA law.
As a result of this citation, Maxsun Produce Corp. is barred from doing business in the produce industry until September 12, 2016, after which it will become eligible to reapply for a new PACA license. In addition, the company's principals, Yi Chen, Brian Cho, and Thomas Qi, may not be employed by or affiliated with any PACA licensee until September 12, 2015. After this date, the three may be employed again 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 the 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.
In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. This is just one more way USDA continues to support the fruit and vegetable industry.
