USDA Lifts PACA Reparation Sanctions on Virginia Produce Business

AMS No. 201-12

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Nadine Wilkins (202)720-8998

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WASHINGTON, Sept. 14, 2012 ? The U.S. Department of Agriculture (USDA) announced that 750 Foods LLC satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).

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However, 750 Foods LLC, of Reston, Va., remains unlicensed and cannot operate in the produce industry unless it is issued a PACA license. Eligio Pena is listed as a member of this business, but remains under employment restrictions due to his affiliation with the following PACA sanctioned companies:

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--2000 Avondale Foods LLC, d/b/a Compare Foods, Durham N.C., failed to pay $25,718 to a North Carolina seller.

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--650 Foods LLC, Riverdale, Md., failed to pay $14,301.81 to a Texas seller.

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PACA provides for an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. The USDA is required to impose sanctions on a 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.

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Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named responsibly connected individuals. USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.

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The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers, within the fruit and vegetable industry. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.

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In fiscal year 2011, USDA resolved approximately 2,000 claims filed under the PACA involving $31 million. This is just one more way the USDA continues to support the fruit and vegetable industry.

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For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.

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Get the latest Agricultural Marketing Service news at http://www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. You can also read about us on the USDA blog.

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USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).

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Source: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateU&navID=Newsroom&page=Newsroom&resultType=Details&dDocName=STELPRDC5100465&dID=175621&wf=false&description=USDA+Lifts+PACA+Reparation+Sanctions+on+Virginia+Produce+Business&topNav=Newsroom&leftNav=&rightNav1=&rightNav2=

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