The U.S. Department of Agriculture (USDA) has imposed sanctions on G & K Citrus LLC, (G&K Citrus) Miami, Florida for violating the Perishable Agricultural Commodities Act (PACA). These sanctions include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA.
G&K Citrus failed to pay $265,700 to four sellers for produce that was purchased, received and accepted in interstate and foreign commerce from October 2018 to June 2020. This is in violation of the PACA. G&K Citrus cannot operate in the produce industry until May 19, 2024, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principals, Gary Thompson and Karen Thompson, may not be employed by or affiliated with any PACA licensee until May 19, 2023, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed wilful, repeated and flagrant violations of 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.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
Click here for an overview of companies that previously violated PACA.