USDA Files Action Against Chaparral Fruit Sales for PACA Violations
The USDA has cited Chaparral Fruit Sales Inc. for failure to pay seven produce sellers $254,141 from September 2011 through September 2012.
The Texas-based company will have an opportunity to request a hearing. However, if the USDA finds that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. In addition, 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, according to a press release.
In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. Individuals, including sole proprietors, partners, members, managers, officers, directors, and 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.
Agricultural Marketing Service
