Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.gov
WASHINGTON, Dec. 5, 2011 – The U.S. Department of Agriculture (USDA) has filed administrative actions under the Perishable Agricultural Commodities Act (PACA) against five produce companies: Grand Mart Inc.; Grand Mart International Food LLC; Lucky World Gaithersburg Inc.; Man Min Inc.; and Grand Mart 7 Inc., operating in Maryland and Virginia, and two individuals, Man S. Kang and Min S. Kang. The actions seek to revoke the PACA licenses of the five produce companies and extend the employment sanctions of the two individuals.
The complaints allege that the five produce companies unlawfully employed or affiliated with Man S. Kang and Min S. Kang in violation of the PACA. The complaints further allege that Man S. Kang and Min S. Kang continued their affiliation or employment with the five produce companies while under employment sanctions in violation of the PACA.
Man S. Kang and Min S. Kang were barred from operating a PACA licensed produce business or being employed by a PACA licensee as the result of their responsibly connected status with MS Grand Inc., operating in Lanham, Md. The PACA license of MS Grand Inc. was suspended for failing to pay a reparation award.
The five produce companies, along with Man and Min Kang, will have an opportunity to request a hearing. Should USDA find that they have violated the PACA, the five companies could be barred from the produce industry for two years. Furthermore, the principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.
The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA. The PACA establishes a code of good business conduct for the produce industry. Under it, all interstate traders in fresh and frozen fruits and vegetables must be licensed by USDA. USDA is authorized to suspend or revoke a trader’s license for violating the act.
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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