WASHINGTON, June 9, 2011 – The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
- Serve New England Inc., operating out of Avon, Mass., for failing to pay a $22,072.80 award in favor of a New York seller. As of the issuance date of the reparation order, Ann Adams, Diane Badger, Susan Bickoff, Richard Buccella, Howard S. Davis, John Odams, and Barry Thompson were listed as the officers, directors, and major stockholders of the company. Another principal of the company at the time of the order was Theresa Tomaino. She has challenged her responsibly connected status.
- MGG Inc., operating out of Passaic, N.J., for failing to pay a $41,270.50 award in favor of a New York seller. As of the issuance date of the reparation order, Gavino Delgado and Manuel Hernandez were listed as the officers, directors, and major stockholders of the company.
- G Fresh Corp., operating out of Bronx, N.Y., for failing to pay a $26,446.20 award in favor of an Ohio seller. As of the issuance date of the reparation order, Sun U. Yi was listed as the sole officer, director, and stockholder of the company.
PACA provides for an administrative forum to handle disputes over produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. The USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, 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 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. 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 in their continued efforts to serve and protect the fruit and vegetable industry from unlawful trade practices.
For more information, contact John Koller, Director, Dispute Resolution Section at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.
Get the latest Agricultural Marketing Service news at http://www.ams.usda.gov/news or follow us on Twitter @USDA_AMS_NEWS.
USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Ave., S.W., Washington, D.C. 20250-9410 or call (800) 795-3272(voice), or (202) 720-6382 (TDD).