United States Department of Agriculture Lifts PACA Reparation Sanctions on California Produce Business


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Tue. April 2nd, 2024 - by Melissa De Leon Chavez

WASHINGTON, DC - After satisfying a $31,200 reparation order issued under the Perishable Agricultural Commodities Act (PACA), the United States Department of Agriculture announced that it has lifted reparation sanctions for California-based Parimar, doing business as D. DeFranco & Sons.

Direct From the USDA Agricultural Marketing Service:

The Los Angeles, California, company has met its obligations and is now free to operate in the produce industry. Gerald S. DeFranco, Paul F. DeFranco, and Richard J. DeFranco were listed as the officers, directors, and/or major stockholders 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 contact information and to read the release in its entirety, click here.