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WASHINGTON, DC - The U.S. Department of Agriculture (USDA) announced that Oscar Produce, operating from Brooklyn, N.Y., has satisfied a $17,058 reparation order issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transactions. The company is now free to operate in the produce industry. Oskar Krakhmal was listed as the officer, director, and major stockholder of the business and may now be employed by or affiliated with any PACA licensee.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order 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.
Once a reparation order is fully satisfied and it is confirmed that there are no outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals.
For more information, contact Penny Robinson-Landrigan, PACA Dispute Resolution Branch, at (202) 720-2890 or [email protected].