USDA Lifts PACA Reparation Sanctions on New York Produce Business
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has recently announced Family Fruit 2 Inc. has satisfied a reparation order that was issued under the Perishable Agricultural Commodities Act (PACA) and lifted the sanctions against the company. As part of its requirements to conduct PACA-related business, Family Fruit 2 satisfied a reparation order that was issued to them in July 2020 in the amount of $47,025 for unpaid produce transactions.
Direct from the USDA Agricultural Marketing Service:
The Staten Island, N.Y., company has met its obligations and is now free to operate in the produce industry. Louis Epifania was listed as the officer, director, and/or major stockholders of the business and may now be employed by or affiliated with any PACA licensee.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. 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.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals. USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.
For more information and to read the press release in its entirety, please visit the link here.