WASHINGTON, Nov. 13, 2013 – The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
- Agrifresh Harvest Inc., operating out of Brawley, Calif., for failing to pay a $24,661 award in favor of an Arizona seller. As of the issuance date of the reparation order, Frank Avila was listed as the officer, director, and major stockholder of the business.
- Organic Alliance Inc., operating out of Salinas, Calif., for failing to pay a $40,937 award in favor of a Texas seller. As of the issuance date of the reparation order, Parker Booth was listed as the officer, director, and major stockholder of the business.
- Cleveland Fruit Market LLC, operating out of Cleveland, Miss., for failing to pay a $45,548 award in favor of an Alabama seller. As of the issuance date of the reparation order, Kenneth Morris was listed as the sole member and major stockholder of the business.
- Green Hill Farms Produce Inc., operating out of Morristown, Tenn., for failing to pay a $20,207 award in favor of a Florida seller. As of the issuance date of the reparation order, Michael C. Bradley, Heather M. Bradley, and James R. Wilson were listed as the officers, directors, and/or major stockholders of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued 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 sanction 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.
The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. 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 almost $96 million. This is just one more way USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.
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