Texas Firm Posts $60,000 Employment Bond
WASHINGTON, DC - Under regulations of the Perishable Agricultural Commodities Act (PACA), Lone Star Fruit & Vegetable Inc., operating out of Houston, Texas, posted a $60,000 surety bond.
According to a USDA press release, the surety bond was posted with the U.S. Department of Agriculture (USDA) to employ John Honeycutt, previously named in a PACA action.
John Honeycutt was an officer of Third Coast Produce Company Ltd., Houston, Texas, which, according to the USDA, was found to have committed repeated and flagrant violations of Section 2 of the PACA.
Any PACA licensee wishing to employ individuals who have failed to pay a reparation award, or have been subject to a USDA disciplinary action, must post a USDA-approved surety bond.
USDA will hold the $60,000 bond for four years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct its business according to PACA rules.
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.
