WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has cited Lucas Trading Company LLC, operating out of St. Charles, Missouri, for failure to pay for produce.
According to a press release, the company failed to pay $656,325 to 18 sellers for 76 lots of produce which was purchased, received, and accepted in interstate commerce from May 2015 through September 2016. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, Lucas Trading Company LLC cannot operate in the produce industry until Nov. 24, 2019, at which time they may reapply for a PACA license.
The company’s principal, Charles B. Lucas, may not be employed by or affiliated with, any PACA licensee until Nov. 24, 2018, and then only with the posting of a USDA-approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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 PACA Division, which is part of USDA’s Agricultural Marketing Service (AMS), 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 resolved approximately 3,400 PACA claims involving more than $58 million. USDA experts also assisted more than 8,500 callers with issues valued at approximately $151 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
