WASHINGTON, DC - The United States Department of Agriculture (USDA) recently imposed sanctions on Northeast Tomato Distributors for violating the Perishable Agricultural Commodities Act (PACA). These sanctions include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA.

Direct from the USDA Agricultural Marketing Service:

Northeast Tomato Distributors failed to pay $219,173 to five sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from August 2022 to November 2022. This is in violation of the PACA. Northeast Tomato Distributors cannot operate in the produce industry until July 9, 2026, and then only after it applies for and is issued a new PACA license by USDA.

The company’s principals, Linda Good and Patrick Good, may not be employed by or affiliated with any PACA licensee until July 9, 2025, 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 release in its entirety, click here.