USDA imposes sanctions on two companies for PACA violations

The U.S. Department of Agriculture has imposed sanctions on Southern Sun LLC, Woolwich, N.J., 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.

Southern Sun LLC failed to pay $436,401 to five sellers for produce that was purchased, received and accepted in interstate and foreign commerce from February 2018 to November 2018. This is in violation of the PACA. Southern Sun LLC cannot operate in the produce industry until Dec. 8, 2022, and then only after they apply for and are issued a new PACA license by USDA. 

The company’s principal, Paul Ross, may not be employed by or affiliated with any PACA licensee until Dec. 8, 2021, and then only with the posting of a USDA approved surety bond. The company’s other principal, Parminder Singh, has challenged his responsibility connected status.

USDA has also imposed sanctions on Old West Export Inc., Visalia, Calif., for violating PACA. 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.

Old West Export Inc. failed to pay $1,059,875 to five sellers for produce that was purchased, received and accepted in interstate and foreign commerce from March 2018 to November 2018. This is in violation of the PACA. Old West Export Inc. cannot operate in the produce industry until Jan. 14, 2023, and then only after they apply for and are issued a new PACA license by USDA.

The company’s principals, Dave Muse and Frances Murillo, may not be employed by or affiliated with any PACA licensee until Jan. 14, 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.

Click here for an overview of companies who previously violated PACA.

For more information: 
John Koller
USDA
Tel: +1 202 720 2890
Email: PACAdispute@usda.gov 
www.ams.usda.gov 


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