USDA Lifts PACA Reparation Sanctions on Massachusetts-based The Alphas Company Inc.


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Thu. October 8th, 2015 - by Jordan Okumura-Wright

WASHINGTON, D.C. - The U.S. Department of Agriculture (USDA) has announced that The Alphas Company Inc. satisfied a reparation order issued under PACA. 

As we’ve previously reported, The Alphas Company Inc. neglected to pay a $50,025 award in favor of a New York seller and was subsequently restricted from operating in the produce industry. 

According to a press release, the Chelsea, MA-based company can continue operating in the produce industry upon applying for and being issued a PACA license. John S. Alphas was listed as the Officer, Director, and Major Stockholder of the business, and may now be employed by or affiliated with any PACA licensee.

The 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.

In the past three years, USDA resolved approximately 4,250 PACA claims involving more than $77 million. Its experts also assisted more than 7,000 callers with issues valued at approximately $110 million. These are just two examples of how the USDA continues to support the fruit and vegetable industry.

Agricultural Marketing Service