USDA Files Action Against Santa Cruz Fresh Produce Inc. in California for PACA Violations
WASHINGTON, D.C. - The USDA has filed an administrative complaint under PACA against Santa Cruz Fresh Produce Inc. for failure to pay from produce.
According to the USDA, the Califonia-based company allegedly failed to make payment to nine separate produce sellers in the amount of $291,679 from May 2012 through July 2013.
Santa Cruz Fresh Produce Inc. will have an opportunity to request a hearing, but if the USDA finds that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. Furthermore, its Principal could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.
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, USDA resolved approximately 4,250 PACA claims involving more than $77 million. USDA experts have also assisted more than 7,000 callers with issues valued at approximately $110 million. Individuals, including sole proprietors, Partners, members, Managers, Officers, Directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service, PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.
