WASHINGTON, D.C. - The USDA has cited Arkansas-based company Allens Inc. for failure to pay for produce.
The company allegedly failed to pay 40 produce sellers $9,759,843 for 2,312 lots of produce from October 2013 to January 2014. Allens Inc. will have an opportunity to request a hearing. If the USDA finds that the company committed repeated and flagrant violations, it would be barred form the produce industry for two years, according to a press release.
The company’s principals could not 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. Individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.
