WASHINGTON, D.C. – The U.S. Department of Agriculture (USDA) reported that it has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Hart Produce Co. Inc., operating out of Hart, Mich., for failing to pay a $500 award in favor of a Florida seller. As of the issuance date of the reparation order, Jerry A. Brandel and Arthur H. Brandel were listed as the officers, directors, and major stockholders of the business.
- Wichita Food Mart Inc., operating out of Wichita Falls, Texas, for failing to pay a $4,545 award in favor of a Texas seller. As of the issuance date of the reparation order, Darrell Taylor was listed as the officer, director, and major stockholder of the business.
- Da Vinci Carriers Inc., operating out of Garden Grove, Calif., for failing to pay a $23,704 award in favor of an Ohio seller. As of the issuance date of the reparation order, John H. Thompson was listed as the officer, director, and major stockholder of the business.
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, the USDA has resolved approximately 3,700 PACA claims involving more than $66 million. Its experts have also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how the USDA continues to support the fruit and vegetable industry.
