USDA Lifts PACA Reparation Sanctions on Texas Produce Business

WASHINGTON, April 23, 2024 – The U.S. Department of Agriculture (USDA) announced that Prometo Produce Corp., satisfied a reparation order in the amount of $15,400 issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transactions.

The McAllen, Texas, company has met its obligations and is now free to operate in the produce industry. Vicente Diaz Moreno was listed as the sole officer, director and stockholder of the business and may now be employed by or affiliated with any PACA licensee.

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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.

Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals.

For more information, contact Penny Robinson-Landrigan, Chief, Dispute Resolution Branch, at (202) 720-2890, or PACAdispute@usda.gov. 

The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry. In the past three years, USDA handled more than 2,340 cases valued at $126.3 million. PACA staff also assisted over 5,600 callers with issues valued at $146.7 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

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