WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has filed an administrative action under the Perishable Agricultural Commodities Act (PACA) against American Fruit & Produce Corporation.

According to a recent USDA press release, the company, operating from Florida, allegedly failed to make payment promptly to 38 produce sellers in the amount of $2,842,249 from April 2015 through May 2016.

American Fruit & Produce Corporation will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. Furthermore, its principals 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.

In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Its experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

USDA's Agricultural Marketing Service