Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.govBilly Cox (202)720-8998Billy.cox@ams.usda.gov
WASHINGTON, Jan. 22, 2010 - The U.S. Department of Agriculture has cited Carolina Tomato Inc., operating in Columbia, S.C., for repeated and flagrant violations of the Perishable Agricultural Commodities Act (PACA).
As a result, the company cannot operate in the produce industry until Dec. 31, 2011, and then only if it obtains a PACA license.
The complaint filed by USDA alleged that the company failed to make full payment promptly to 36 sellers of the agreed purchase prices, or the balance of those prices, in the total amount of $9,632,013.90 for 910 lots of produce, which the company purchased, received, and accepted in the course of interstate and foreign commerce during the period of September 2004 through December 2006.
USDA served the company with a complaint and the company, while neither admitting or denying the allegations, consented to a finding of repeated and flagrant violations of the PACA.
The company’s principals, Gary R. Goodnight and Phillip C. Jones, may not be employed by or affiliated with any PACA licensee until Dec. 31, 2010, 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.
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