The USDA's Agricultural Marketing Service (AMS) is announcing that it has filed an administrative action under the Perishable Agricultural Commodities Act (PACA) against New York-based Maxsun Produce Corporation.
The company allegedly failed to pay 23 produce sellers $1,018,384 from January 2012 through October 2012.
Maxsun will have the option of requesting a hearing. If USDA finds that the company committed repeated and flagrant violations, it will be barred from the produce industry for two full years.
Additionally, if Maxsun is found to have been in violation, its principals cannot be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.
In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. This is just one more way USDA continues to support the fruit and vegetable industry.
Agricultural Marketing Service
