The U.S. Department of Agriculture (USDA) has filed an administrative complaint against Marchella of NY Inc. for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating from New York, allegedly failed to make payment promptly to four produce sellers for $188,706 from November 2021 through September 2022.
USDA has also filed an administrative complaint against Sunbelt Produce Distributors Inc. for alleged violations of PACA. The company, operating from Georgia, allegedly failed to make payment promptly to 20 produce sellers in the amount of $1,922,775 from February 2023 through February 2024.
Both companies will have an opportunity to request a hearing. Should USDA find that the companies committed repeated and flagrant violations, they 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, their 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.
Click here for an overview of companies that previously violated PACA.
For more information:
Corey Elliott
USDA
Tel: +1 (202) 720-6873
[email protected]
www.ams.usda.gov