WASHINGTON, DC - The U.S. Department of Agriculture (USDA) recently released a series of announcements regarding alleged Perishable Agricultural Commodities Act (PACA) violations. Of them, the USDA revealed that it had imposed sanctions against two produce businesses in Pennsylvania and Missouri for failing to meet contractual obligations to the sellers they purchased from and for failing to pay reparation awards issued under PACA totalling $75,994.

These sanctions include suspending the businesses’ PACA licenses and barring the principal opeators of the businesses form engaging in PACA-licensed business or other activities without approval from the USDA.

Direct from the USDA Agricultural Marketing Service:

The following businesses and individuals are currently restricted from operating in the produce industry:

• Louis Produce, operating out of St. Charles, Missouri, for failing to pay a $44,886 award in favor of a Missouri seller. As of the issuance date of the reparation order, Joshua A. Blassingame was listed as a member of the business
• Sycamore Foods, operating out of Scranton, Pennsylvania, for failing to pay a $31,108 award in favor of a New York seller. As of the issuance date of the reparation order, Pavlos Vardinogiannis was listed as the officer, director, and major stockholder of the business

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. 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.

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.

To read the release in its entirety, click here.

USDA Agricultural Marketing Service