WASHINGTON, March 1, 2011 – The U.S. Department of Agriculture (USDA) has cited JC Produce LLC (JC) of W. Sacramento, Calif., for failure to pay 104 sellers totaling $2,349,704.78 for 104 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA).
As a result of these actions, JC cannot operate in the produce industry until Feb. 7, 2013, at which time it may reapply for a PACA license.
The company’s principals, Susan K. Lennane, James P. Lennane, and John Tedesco, may not be employed by, or affiliated with any PACA licensee until Feb. 7, 2012, and then only with the posting of a USDA-approved surety bond. Two other principals are challenging their responsibility status.
Under PACA provisions, those individuals held responsibly connected to PACA violations, including sole proprietors, partners, members, officers, directors, and stockholders, may not be employed by or affiliated with any PACA licensee without USDA-approval.
The Agricultural Marketing Service (AMS), PACA Branch, regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. The USDA is authorized to suspend or revoke a company’s license for violations of the PACA. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.
In fiscal year 2010, USDA resolved approximately 2,000 claims filed under the PACA involving $30 million. This is just one more way the USDA continues to support the fruit and vegetable industry.
For further information contact Phyllis Hall, Director, Trade Practices Section, at (202) 720-6873, by fax at (202) 720-8868, or by email at TradePracticesSection@ams.usda.gov.
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