The U.S. Department of Agriculture has filed an administrative action against Chloe Foods Corp., doing business as Chloe Food Manufacturing, Brooklyn, N.Y., according to a news release.
The action alleges the company violated the Perishable Agricultural Commodities Act, failing pay seven sellers a total of $1.4 million for 266 lots of produce, which the company received from May 2007 through January 2009.
The company will have an opportunity to request a hearing. Should USDA find that the company committed the violations, it could be barred from the produce industry for two years and its principals could not be employed by or affiliated with any PACA licensee for a year, after posting a surety bond.
The USDA also cited Atlantic Coast Produce Inc., Jessup, Md., for PACA violations, according to a news release.
The company cannot operate in the produce industry until Nov. 18, 2011, and then only if it obtains a PACA license.
The company failed to make full payment promptly to 25 sellers for $531,000 for 195 lots of produce, which the company purchased from December 2007 through November 2008.
USDA served the company with a complaint and the company consented to the decision, according to the release.
The companyâs principals, Michael Lambright and August Lambright, may not be employed by or affiliated with any PACA licensee until Sept. 18, 2010, and then only with the posting of a USDA-approved surety bond.
Zartic Inc., Rome, Ga., has posted a $200,000 surety bond with the USDA to obtain a license to operate in the produce industry, according to a news release.
Under PACA regulations, the company was required to post a bond after a bankruptcy.
USDA will hold the bond for three years, assuring the industry that the company will be able to pay for produce purchased and to conduct business according to PACA rules.
International Herbs Ltd., Surrey, British Columbia, has been expelled from the Fruit & Vegetable Dispute Resolution Corporation effective Dec. 18 for not meeting its debts and failing to communicate with the DRC, according to a nes release from the DRC.
The expulsion does not alter the obligations of International Herbs to settle disputes under DRC rules should another member file claim within nine months from when the claim arose or within nine months from when the DRC member reasonably could have known of its existence, according to the release.