Sam Jones-Ellard (202) 660-2268Samuel.Jones@ams.usda.gov
WASHINGTON, June 7, 2012 -- The U.S. Department of Agriculture (USDA) has cited JK Farms Inc., d/b/a MS Food Service, of Washington, D.C., for failure to pay for produce.
The company failed to pay $934,355.51 to 13 sellers for 157 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, JK Farms Inc., d/b/a MS Food Service, cannot operate in the produce industry until May 31, 2014, at which time it may reapply for a PACA license.
The company’s principals Kyung S. Cha, Jae Y. Cha, Hee S. Kim, and Ho Y. Kim may not be employed by, or affiliated with, any PACA licensee until May 31, 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 firms 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 firm’s license for violations of the PACA. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.
In fiscal year 2011, USDA resolved approximately 2,000 claims filed under the PACA involving $31 million in their continued efforts to serve and protect the fruit and vegetable industry from unlawful trade practices.
For further information contact Phyllis Hall, 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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