USDA Cites Golden Gourmet Mushrooms Inc., San Marcos, California

WASHINGTON, April 23, 2008 – The U.S. Department of Agriculture has cited Golden Gourmet Mushrooms Inc ., operating in San Marcos, Calif ., for willful, repeated, and flagrant violations of Sections 2(4) and 2(5) of the Perishable Agricultural Commodities Act (PACA). As a result, the company cannot operate in the produce industry until May 1, 2010, and then only if it obtains a PACA license.

USDA filed a notice to show cause and complaint against Golden Gourmet Mushrooms Inc ., requesting that the company be denied issuance of a PACA license, alleging that the company engaged in practices prohibited by the PACA. USDA served the company with the notice to show cause and complaint.

The action alleged that the company misrepresented the country of origin of mushrooms it sold to customers in the course of interstate and foreign commerce from January 2007 to December 2007. Additionally, the complaint alleged that during the same time period the company made false statements regarding the country of origin of mushrooms it sold for export to Mexico.

The company admitted the jurisdictional allegations of the complaint and consented to the issuance of the decision and order. The company withdrew its PACA license application and the notice to show cause was dismissed.

The company’s principals, Craig R. Anderson and Nicholas D. Connor, may not be employed by or affiliated with any PACA licensee until May 1, 2009, and then only with the posting of a USDA-approved surety bond.

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.

Nadine Wilkins (202) 720-8998
Billy Cox (202) 720-8998

Published on: 2008-04-24

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