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Pennsylvania company cited for $2.5M PACA violation

The U.S. Department of Agriculture has cited Frozen Food Development Inc. in Lancaster, PA, for failure to pay for produce. USDA filed a complaint in January 2023 alleging that Frozen Food failed to pay $2.479 million to 22 sellers for produce that was purchased, received and accepted in interstate and foreign commerce from July 2021 to June 2022.

The parties subsequently agreed to a Consent Decision and Order finding that Frozen Food committed willful, repeated and flagrant violations of the Perishable Agricultural Commodities Act by failing to pay for produce from July 2021 to June 2022. One seller remains unpaid in the amount of $1 million.

As a result of the violations, Frozen Food is not eligible to apply for a PACA license until May 30, 2026. Furthermore, the company’s sole shareholder and principal, Gary Gregory, may not be employed by or affiliated with any PACA licensee until May 30, 2025, and then only with the posting of a USDA-approved surety bond.

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.

In the past three years, USDA handled more than 2,340 cases valued at $126.3 million. PACA staff also assisted over 5,600 callers with issues valued at $146.7 million.

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