USDA Files Action Under PACA Against Phoenix Produce Company in Illinois
WASHINGTON - The USDA has filed an administrative action under the Perishable Agricultural Commodities Act (PACA) against Phoenix Produce Company, an Illinois-based company, for failure to pay for produce.
The company had allegedly failed to pay $987,843 to 17 produce sellers from March 2011 through February 2013, according to a USDA press release.
Phoenix Produce Company will have an opportunity to request a hearing. Should the USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. Its principals 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.
In the past three years, the USDA resolved approximately 4,250 PACA claims involving more than $77 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 (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.
