WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on two produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a recent USDA release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Kajun Kettle Foods Inc., operating out of New Orleans, LA, for failing to pay a $27,836 award in favor of a Washington seller. As of the issuance date of the reparation order, Monica Davidson and Pierre Hilzim were listed as the officers, directors and/or major stockholders of the business.
- Stay Fresh Distributors Inc., operating out of Brooksville, FL, for failing to pay an $8,636 award in favor of a Washington seller. As of the issuance date of the reparation order, Jason A. Canals was listed as the officer, director and major stockholder of the business.
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 3,500 PACA claims involving more than $58 million. Its experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
