USDA Cites Fresh Produce Inc. in Texas for PACA Violations
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) announced that it has imposed sanctions on Fresh Produce Inc., operating out of Dallas, Texas, for its violation of the Perishable Agricultural Commodities Act (PACA). The sanctions include barring the business and its principal operator from engaging in PACA-licensed business or activities without USDA approval.
Direct from the USDA Agricultural Marketing Service:
Fresh Produce failed to pay $374,069 to 15 sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from May 2018 to August 2019. This is in violation of the PACA. Fresh Produce cannot operate in the produce industry until April 16, 2023, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principal, Julio Nolasco, may not be employed by or affiliated with any PACA licensee until April 16, 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.