Washington - The U.S. Department of Agriculture (USDA) has imposed sanctions on a produce business for failing to pay a reparation award issued under the Perishable Agricultural Commodities Act (PACA). The award was previously reported as satisfied; however, the check tendered as payment of the award could not be processed due to insufficient funds. The sanctions include suspending the businesses’ PACA license and barring the principal operator of the business from engaging in PACA-licensed business or other activities without approval from USDA.
The following business and individual are currently restricted from operating in the produce industry:
* Alko Green Fresh LLC, operating out of Las Vegas, Nev., for failing to pay a $19,900 award in favor of an Illinois seller. As of the issuance date of the reparation order, Jorge Ortega was listed as member of the business.
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.
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.
For more information, contact John Koller, Chief, Dispute Resolution Branch, at (202) 720-2890 or PACAdispute@usda.gov.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry. In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $165 million. PACA staff also assisted more than 6,600 callers with issues valued at approximately $169 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
Source: U.S. Department of Agriculture Agricultural Marketing Service
