WASHINGTON, DC - Authorities with the United States Department of Agriculture (USDA) recently announced that they have imposed sanctions on Cariati Developers Incorporated as part of their duties under the Perishable Agricultural Commodities Act (PACA). The produce business has been sanctioned for failing to fully pay a reparation award amounting to $20,648 to an Ohio seller. Erica Maher was listed as the officer, director, and major shareholder of the business.
Direct from the USDA Agricultural Marketing Service:
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.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
For more information, and to read the release in full, click here.
