WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has announced that it has imposed sanctions on Mishawaka, Indiana-based B & B Organics, for violating the Perishable Agricultural Commodities Act (PACA). The sanctions include barring the business as well as its principal operators from engaging in PACA-licensed business or other activities without approval from the USDA.
Direct From the USDA Agricultural Marketing Service:
B & B Organics Inc. failed to pay $1,038,238 to 23 sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from June 2017 to April 2019. This is in violation of the PACA. B & B Organics Inc. cannot operate in the produce industry until January 28, 2023, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principal, Cynthia Boynton, may not be employed by or affiliated with any PACA licensee until January 28, 2022, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA, as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
For more information, and to read the press release in its entirety, click here.
