USDA PACA updates

The U.S. Department of Agriculture announced that United Commodities USA Inc. satisfied a reparation order in the amount of $262,863 issued under the Perishable Agricultural Commodities Act  involving unpaid produce transactions.

The Bakersfield, Calif., company can continue operating in the produce industry upon applying for and being issued a PACA license. Kent Lancaster and Bruce Oettel were listed as the officers, directors, and major stockholders of the business and may now be employed by or affiliated with any PACA licensee.

Complaint filed against North Pacific Canners and Packers Inc.
USDA has filed an amended administrative complaint against North Pacific Canners and Packers Inc., doing business as NORPAC Foods Inc. NORPAC for alleged violations of PACA. This complaint supersedes and replaces the complaint filed on Sept. 28, 2020. The company, operating from Oregon, allegedly failed to make payment promptly to two produce sellers and creditors in the amount of $152,181 from June 2019 through August 2019.

NORPAC will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.

Sanctions on B&B Organics
USDA has imposed sanctions on B & B Organics Inc., Mishawaka, IN, 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.

B & B Organics Inc. failed to pay $1,038,238 to 23 sellers for produce that was purchased, received and accepted in interstate and foreign commerce from June 2017 to April 2019. This is in violation of the PACA. B & B Organics Inc. cannot operate in the produce industry until Jan. 28, 2023, and then only after they apply for and are issued a new PACA license by USDA. 

The company’s principal, Cynthia Boynton, may not be employed by or affiliated with any PACA licensee until Jan. 28, 2022, and then only with the posting of a USDA approved surety bond.

Individual determined responsibly connected
USDA has determined that Lewis Macleod is a responsibly connected principal of Huxtable’s Kitchen Inc. (Huxtable’s), Vernon, Calif. This is an update to Press Release No: 044-20 issued on Feb. 26, 2020, and 150-19 issued on Nov. 6, 2019.

Huxtable’s violated section 2(4) of the PACA by failing to pay $551,829 to six sellers for produce purchased, received and accepted in interstate and foreign commerce from October 2015 to May 2016. As a result, USDA imposed sanctions on the business, including requiring that all principals may not be employed by or affiliated with any PACA licensee without USDA approval.

Lewis Macleod has been held responsibly connected to Huxtable’s at the time of the violation. As a result, he may not be employed by or affiliated with any PACA licensee until Feb. 2, 2022, and then only with the posting of a USDA approved surety bond.

Sanctions imposed on Evergreen Farms
USDA has imposed sanctions on Evergreen Fresh Farms Inc., Oxnard, Calif., for violating PACA. These sanctions include barring the business and the principal operator of the business from engaging in PACA-licensed business or other activities without approval from USDA.

Evergreen failed to pay $350,629 to three sellers for produce that was purchased, received and accepted in interstate commerce from October 2018 to January 2019. This is in violation of the PACA. Evergreen cannot operate in the produce industry until Feb. 8, 2023, and then only after they apply for and are issued a new PACA license by USDA. 

The company’s principal, Eric Mydland, may not be employed by or affiliated with any PACA licensee until Feb. 8, 2022, and then only with the posting of a USDA approved surety bond.

Sanctions on Bain Distributors Inc.
USDA has imposed sanctions on Bain Distributors Inc., Santa Fe Springs, Calif., for violating PACA. These sanctions include barring the business and the principal operator of the business from engaging in PACA-licensed business or other activities without approval from USDA.

Bain failed to pay $322,653 to three sellers for produce that was purchased, received and accepted in interstate and foreign commerce from September 2015 to August 2018. This is in violation of the PACA. Bain cannot operate in the produce industry until Feb. 8, 2023, and then only after they apply for and are issued a new PACA license by USDA.

The company’s principal, Alfred Lares, may not be employed by or affiliated with any PACA licensee until Feb. 8, 2022, and then only with the posting of a USDA approved surety bond.

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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