USDA Files Action Against Gregory Melton, Doing Business as GM Brokerage in Tennessee for PACA Violations

Date: 
Friday, February 12, 2016 - 1:00pm
Contact Info: 

Release No.: 014-16

WASHINGTON, Feb. 12, 2016 – The U.S. Department of Agriculture (USDA) has filed an administrative action under the Perishable Agricultural Commodities Act (PACA) against Gregory Melton, doing business as GM Brokerage.

The company, operating from Tennessee, allegedly failed to remit net proceeds to 22 produce sellers in the amount of $440,902 from December 2013 through October 2014.

Gregory Melton, doing business as GM Brokerage, will have an opportunity to request a hearing.  Should USDA find that the company committed repeated and flagrant violations, Melton would be barred from the produce industry for two years.  Furthermore, he could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.

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.

Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. You can also read about us on the USDA blog.

USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).

For Firefox users, please download Adobe Flash player from https://get.adobe.com/flashplayer/.
In order to see a caption of each photo, please follow the steps below:
1. Click play button.
2. Click expand button on the lower right corner.
3. Click 'Show Info' link on the upper right corner.