USDA Lifts PACA Reparation Sanctions on Sun Belt Commodities


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Wed. April 23rd, 2014 - by Jordan Okumura-Wright

<p> The USDA has lifted PACA reparation sanctions for <B>Sun Belt Commodities Inc.</b>, a Houston, Texas-based company. The company had previously failed to pay a $122,221 award in favor of a California seller.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Sun Belt Commodities<B> may now continue operating</b> in the produce industry upon applying for and being issued a PACA license, according to a press release. <B>Daniel Chen</b> and <B>James C. Lai</b> were listed as the officers, directors, and/or major stockholders of the businesses and <B>may now be employed</b> by or affiliated with any PACA licensee.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> 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.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.ams.usda.gov/AMSv1.0" target="_new"> Agricultural Marketing Service </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">