WASHINGTON, May 7, 2013 – The U.S. Department of Agriculture (USDA) has cited Market 52 Inc., of Kingsburg, Calif., for failure to pay for produce.
The company failed to pay $842,429 to nine sellers for 48 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, Market 52 Inc. cannot operate in the produce industry until April 20, 2015, at which time it may reapply for a PACA license.
The company’s sole principal, Jerald D. Downs, may not be employed by or affiliated with any PACA licensee until April 20, 2014, and then only with the posting of a USDA-approved surety bond.
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 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 PACA. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.
In the past three years, USDA resolved approximately 5,000 claims filed under PACA involving $96 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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