WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has announced that it has imposed sanctions on Santa Fe Springs, California-based Bain Distributors Inc. for violating the Perishable Agricultural Commodities Act (PACA). The sanctions include barring the business as well as its principal operators from engaging in PACA-licensed business or other activities without approval from the USDA.

Direct From the USDA Agricultural Marketing Service:

Bain failed to pay $322,653 to three sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from September 2015 to August 2018. This is in violation of the PACA. Bain cannot operate in the produce industry until February 8, 2023, and then only after they apply for and are issued a new PACA license by USDA.

The company’s principal, Alfred Lares, may not be employed by or affiliated with any PACA licensee until February 8, 2022, and then only with the posting of a USDA approved surety bond.

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.

By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

For more information, and to read the press release in its entirety, click here.

USDA's Agriculatural Marketing Service