USDA Cites Phillies Tomato & Produce Corp., Philadelphia, Pennsylvania

AMS No. 035-10

Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.govBilly Cox (202)720-8998Billy.cox@ams.usda.gov

WASHINGTON, March 11, 2010 - The U.S. Department of Agriculture has cited Phillies Tomato & Produce Corp., operating in Philadelphia, Pa., for willful, repeated, and flagrant violations of the Perishable Agricultural Commodities Act (PACA).

As a result, the company cannot operate in the produce industry until March 2, 2012, and then only if it obtains a PACA license.

The company failed to make full payment promptly of the agreed purchase prices, or balance thereof, for 289 lots of produce, which the company purchased, received, and accepted in interstate commerce from 26 sellers, in the total amount of $1,241,848.35 during the period of May 2007 through October 2007.

USDA served the company with a complaint and the company consented to the entry of the decision.

The company’s principals, John J. Sklarz and Nicole Sklarz, may not be employed by or affiliated with any PACA licensee until March 2, 2011, and then only with the posting of a USDA-approved surety bond.

The PACA establishes a code of good business conduct for the produce industry. Under it, all interstate traders in fresh and frozen fruits and vegetables must be licensed by USDA. USDA is authorized to suspend or revoke a trader’s license for violating the act.

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