The U.S. Department of Agriculture has imposed sanctions on National Produce Sales Inc., Lake Zurich, Ill., for violating the Perishable Agricultural Commodities Act. These sanctions include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA.
NPS failed to pay $820,456 to seven sellers for produce that was purchased, received and accepted in interstate and foreign commerce from January 2016 to February 2018. This is in violation of the PACA. NPS cannot operate in the produce industry until Oct. 21, 2022, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principals, Michael Hughes and David El-Aboudi, may not be employed by or affiliated with any PACA licensee until Oct. 21, 2021, 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.
Click here for an overview of companies who previously violated PACA.