WASHINGTON, Sept. 3, 2014 – The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
--International Distribution Co. Inc., operating out of Hamden, Conn., for failing to pay a $6,696 award in favor of a New York seller. As of the issuance date of the reparation order, Charles E. Leroux and Chongdee Leroux were listed as the officers, directors, and/or major stockholders of the business.
--Beam Produce Co. Inc., operating out of Rome, Ga., for failing to pay a $1,972 award in favor of a Georgia seller. As of the issuance date of the reparation order, John D. Beam and Todd D. Beam were listed as the officers, directors, and/or major stockholders of the business.
--Fresh Produce Inc., operating out of Dallas, Texas, for failing to pay a $15,396 award in favor of a Texas seller. As of the issuance date of the reparation order, Julio C. Nolasco was listed as the officer, director, and major stockholder of the business.
--Premier Trading LLC, operating out of Greenwood Village, Colo., for failing to pay a $112,710 award in favor of a Texas seller. As of the issuance date of the reparation order, Anthony J. Filpi and William F. Vogel were listed as members of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued 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.
The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.
In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. This is just one more way USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at PACAdispute@ams.usda.gov regarding this matter.
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