Second PACA violation extends produce company's sanctions

Author: 
beckman@theproducenews.com (press release)
Date: 
Friday, 25 January 2019 - 6:00am

The U.S. Department of Agriculture has extended sanctions on the Fruit Club Inc for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act.

The Sioux Falls, SD-based company continues to be restricted from operating in the produce industry for failing to pay a $108,384 award in favor of a Florida seller.  As of the issuance date of the reparation order, Matthew Kleinsasser was listed as the officer, director and major stockholder of the business.

Subsequent to the issuance of the aforementioned reparation order, a new reparation order was issued against the Fruit Club Inc., to pay $67,500 to a Michigan seller.  The Fruit Club Inc. has not made payment to the Michigan seller within the time designated in the new reparation order.  As a result, the sanction period levied against the company and its principal has been extended to reflect this new violation.

In the past three years, USDA resolved approximately 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. 

About D. Otani Produce

In business since 1989, D. Otani Produce, Inc. has grown into one of Hawaii’s largest produce wholesalers, enjoying business with hotels, restaurants, local business institutions. We are also a major distributor to Hawaii’s retailers.

Get in touch

D. Otani Produce
1321 Hart St
Honolulu, HI 96817

Phone: (808) 509-8350

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