The United States Department of Agriculture (USDA) has determined that Brian Klein is not responsibly connected to Kendall Frozen Fruits Inc. (KFF), operating out of Newport Beach, Calif. This is an update to Press Release No: 042-21 issued on May 18, 2021.
KFF failed to pay $2,166,335 to two sellers for produce that was purchased, received and accepted in interstate commerce from May 2017 to July 2018. As a result, USDA imposed sanctions on the business, including requiring that all principals may not be employed by or affiliated with any PACA licensee without USDA approval.
USDA made an initial determination that Brian Klein was responsibly connected to KFF and subject to sanctions. Brian Klein contested his initial determination, and USDA has now determined he was not responsibly connected to KFF at the time of the violations.
As a result, Brian Klein may be employed by or affiliated with any PACA licensee.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individual.
Click here for an overview of companies who previously violated PACA.