USDA Cites Paradise Produce LLC in Nevada for PACA Violations
- by Alexis Schreiber
WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has cited Paradise Produce LLC, Las Vegas, NV, for failure to pay for produce.
According to a press release, the company failed to pay $694,922 to 32 sellers for produce, which was purchased, received, and accepted in interstate and foreign commerce from February 2017 through November 2017. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, Paradise Produce LLC, is prohibited from operating in the produce industry until March 4, 2021, and then only after it applies for and is issued a new PACA license by USDA.
The company’s principals, Eugene Hickey, Michael Rosenblum, and William Rosenblum, may not be employed by or affiliated with any PACA licensee until March 4, 2020, 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 in the Fair Trade Practices Program in the Agricultural Marketing Service, 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 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.