WASHINGTON, April 4, 2014 – The U.S. Department of Agriculture (USDA) has cited Drobnick Distributing Inc., of Salinas, Calif., for failure to pay for produce.
The company failed to pay $1,466,029 to one seller for 55 lots of produce. As a result of these actions, Drobnick Distributing Inc. entered into a consent decision barring the company from the produce industry until March 12, 2016, at which time it may apply for a Perishable Agricultural Commodities Act (PACA) license.
The company’s principals, Edward Drobnick and Deborah Drobnick, may not be employed by or affiliated with any PACA licensee until March 12, 2015, and then only with the posting of a USDA-approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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 companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. USDA is authorized to suspend or revoke a company’s license for violations of the PACA. All oversight of actions related to the 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 further information, contact Josephine E. Jenkins, Chief, Investigative Enforcement Branch, at (202) 720-6873, by fax at (202) 720-8868, or by email at InvestigativeEnforcement@ams.usda.gov.
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