USDA Restricts Two PACA Violators in Georgia and Arizona from Operating in the Industry


Tue. February 5th, 2013 - by Jordan Okumura-Wright

<p style="text-indent:0px; line-height:12px;"><span style="font-weight:bold;">Washington D.C.-</span><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">By ANUK Staff<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">2.6.13</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>The USDA has just announced that it has imposed sanctions on two produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA): Four Corners Farms, Inc. and Pauher Fresh, LLC.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Glenville, GA-based Four Corners Farms is currently restricted from operating in the produce industry for failure to pay an $89,147 award in favor of a Florida seller. Robert D. Rushing was listed as the director, officer, and major stockholder of the business at the time of issuance of the reparation order.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Rio Rico, AZ-based Pauher Fresh LLC is also restricted from operating in the produce industry for failure to pay $38,048 award in favor of a Texas seller. As of the issuance date of the reparation order, Jesus Ernesto was listed as a member of the business. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>PACA provides a forum to handle disputes involving produce transactions and outstanding payments. 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. The USDA is required to impose sanctions on a business that fails to pay PACA reparations as well as impose restrictions against principals held responsible. Those principals held responsibly connected to the business when an order is issued may not be employed by or affiliated with any PACA licensee without USDA-approval.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating under to the PACA. All oversight of actions related to the PACA are conducted by AMS.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">In the past three years, USDA resolved approximately 5,000 claims filed under the PACA involving $96 million.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.ams.usda.gov/AMSv1.0/" target="_new">AMS</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">