The U.S. Department of Agriculture (USDA) announced that Superior Growers LLC satisfied a reparation order for $16,841 issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transactions.
The Las Vegas, Nevada company can continue operating in the produce industry upon applying for and being issued a PACA license. Ely Trujillo was listed as the sole member of the business and may now be employed by or affiliated with any PACA licensee.
The USDA has also filed an administrative complaint against Northeast Tomato Distributors Inc. (Northeast) for alleged violations of the PACA. The company, operating from Pennsylvania, allegedly failed to make payment promptly to five produce sellers for $219,173 from August 2022 through November 2022.
Northeast 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.
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.
Click here for an overview of companies that previously violated PACA.
For more information:
Penny Robinson-Landrigan (reparation order)
USDA
Tel.: +1 (202) 720-2890
PACAdispute@usda.gov
www.ams.usda.gov
Corey Elliott (administrative complaint)
USDA
Tel: +1 (202) 720-6873
PACAInvestigations@usda.gov
www.ams.usda.gov