Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.gov
WASHINGTON, April 18, 2011 – The U.S. Department of Agriculture has determined that James Zappala was responsibly connected with Empire Fresh Cuts LLC, Oswego, N.Y., which had been cited in the Nov. 5, 2010, press release for failure to pay a reparation award, which is a violation of the Perishable Agricultural Commodities Act (PACA).
A responsibly connected person is defined under the PACA as a partner in a partnership; or an officer, director, or more than 10 percent stockholder of a corporation or association. When a company has had its PACA license suspended or revoked, or has been found to have committed violations, the responsibly connected individuals are automatically subject to employment and licensing restrictions in the fruit and vegetable industry.
The Department reviewed all records available, which failed to prove that he was not a responsibly connected individual with Empire Fresh Cuts LLC, at the time the reparation order became final.
As a result of the final determination of his responsibly connected status on Nov. 17, 2010, James Zappala cannot be licensed in the produce industry until Nov. 17, 2012, and then only with the posting of a USDA-approved surety bond.
In addition, James Zappala may not be employed by or affiliated with any PACA licensee unless the employing company posts a USDA-approved surety bond. After two years, orNov. 17, 2012, he is eligible to be employed or affiliated with any PACA licensee without the approved surety bond.
In fiscal year 2010, USDA resolved approximately 2,000 claims filed under the PACA involving $30 million. This is just one more way in which the USDA continues to support the fruit and vegetable industry.
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