WASHINGTON, D.C. - The USDA has lifted PACA reparation sanctions on Watermelons Inc.
The Howell, New Jersey-based company may now continue operating in the produce industry after applying for and receiving a PACA license. Charles F. Pagano was listed as the officer, director, and major stockholder of the business and may now be employed by or affiliated with any PACA licensee, according to a press release.
Watermelons Inc. was formerly restricted from operating in the produce industry on August 14, 2014 for failing to pay a $19,318 award in favor of a North Carolina seller. 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.
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.
