WASHINGTON, D.C. – The USDA has restricted three produce businesses for failure to pay reparation awards under the Perishable Agriculture Commodities Act (PACA).

According to a press release from the USDA, the following businesses and individuals are currently restricted from operating in the produce industry:

• Stea Bros. Inc., a Philadelphia, Pennsylvania-based company, has been barred for failure to pay an $117,027 award in favor of a California seller. As of the issuance date of the reparation order, Frank Stea was listed as the Officer, Director, and major stockholder of the business. He has challenged his responsibly connected status.
• New World Wholesale Inc., a Jessup, Maryland-based company, has failed to pay a $5,620 award in favor of a Texas seller. As of the issuance date of the reparation order, Sang S. Kim was listed as the Officer, Director, and major stockholder of the business.
• Lanes Consulting Firm LLC , doing business as Rocco’s Produce, a Wheat Ridge, Colorado-based company, has failed to pay a $97,897 award in favor of an Indiana seller. As of the issuance date of the reparation order, Jacob Howes was listed as a member of the business.

The USDA is required to suspend the license or impose sanctions on an unlicensed 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, Managers, Officers, Directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.

In the past three years, the USDA resolved approximately 4,250 PACA claims involving more than $77 million.

The Agricultural Marketing Service, PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.

Agricultural Marketing Service