WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on two produce businesses for failure to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). In total, the two businesses failed to pay $18,4888.
Direct from the USDA Agricultural Marketing Service:
The following businesses and individuals are currently restricted from operating in the produce industry:
- C & D Distributors Inc., operating out of Evanston, Illinois, for failing to pay a $7,457 award in favor of a Colorado seller. As of the issuance date of the reparation order, Samuel R. Sustarich and Clark J. Fideler were listed as the officers, directors, and/or major stockholders of the business
- Farmer Jacks Produce LLC, operating out of Middlesex, New Jersey, for failing to pay an $11,031 award in favor of a Texas seller. As of the issuance date of the reparation order, Nasser Nasser and Helen G. Mejia were listed as managers and members of the business. Other principals of the business at the time of the order were Francis Manzo, Sharon Press, and Stephen D. Press. Sharon Press and Stephen D. Press have been found not responsibly connected to Farmer Jack's Produce LLC at the time of the violation. Francis Manzo has challenged his responsibly connected status
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it, as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
For more information, and to read the press release in its entirety, click here.
