Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.gov
WASHINTON, Oct. 22, 2010 – The U.S. Department of Agriculture (USDA) has cited J & N Produce Inc., Detroit, Mich., for failure to make full payment promptly to 20 produce creditors totaling $256,824.10 for 589 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA).
As a result of these actions, J & N cannot operate in the produce industry until Aug. 17, 2012, at which time it may reapply for a PACA license.
One of the company’s principals, Joseph V. Ciolino, may not be employed by or affiliated with any PACA licensee until Aug. 17, 2011, and then only with the posting of a USDA-approved surety bond. Another principal is challenging his responsibly connected status.
Under PACA provisions, those individuals held responsibly connected to PACA violations, including sole proprietors, partners, members, officers, directors, and stockholders, may not be employed by or affiliated with any PACA licensee without USDA-approval.
The Agricultural Marketing Service (AMS), PACA Branch, regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. The 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 the AMS, an agency within the USDA.
In fiscal year 2010 USDA resolved approximately 2,000 claims filed under the PACA involving $30 million. This is just one more way the USDA continues to support the fruit and vegetable industry.
For further information contact Phyllis Hall, Director, Trade Practices Section, at (202) 720-6873, by fax at (202) 720-8868, or by email at TradePracticesSection@ams.usda.gov.
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