Release No.: 074-16
WASHINGTON, April 4, 2016 – The U.S. Department of Agriculture (USDA) has cited Sun Produce Specialties LLC, Phoenix, Ariz., for unlawful employment of an individual under PACA employment restrictions after being given notice by the USDA that the company was not permitted to employ that individual without USDA-approval and the posting of a surety bond.
USDA and Sun Produce Specialties entered into a consent decision and order finding that the company violated section 8(b) of PACA and revoking the company’s PACA license. However, the finding and revocation are in abeyance so long as the company pays a civil penalty of $20,000 no later than July 29, 2016. If the company satisfies the terms of the consent decision and order, the finding of violation and license revocation will be permanently abated without further process and the case will be closed.
USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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.
The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA. 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.
In the past three years, USDA resolved approximately 3,700 PACA claims involving more than $66 million. Our experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
For further information, contact Josephine E. Jenkins, Chief, Investigative Enforcement Branch, at (202) 720-6873, or by email at PACAInvestigations@ams.usda.gov.
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