WASHINGTON - The U.S. Department of Agriculture (USDA) has imposed sanctions on Marchella of NY Inc., Oceanside, N.Y., for violating the Perishable Agricultural Commodities Act (PACA). These sanctions include barring the business and the principal operator of the business from engaging in PACA-licensed business or other activities without approval from USDA.

Marchella of NY Inc. failed to pay $188,706 to four sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from November 2021 to September 2022. This is in violation of the PACA. Marchella of NY Inc. cannot operate in the produce industry until Jan. 6, 2027, and then only after they apply for and are issued a new PACA license by USDA.

The company’s principal, Manashe Yukhananov, may not be employed by or affiliated with any PACA licensee until Jan. 6, 2026, 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 further information, contact Corey Elliott, Chief, Investigative Enforcement Branch, at (202) 720-6873 or [email protected].