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USDA cites Illinois company for for $800K PACA violations

The U.S. Department of Agriculture has imposed sanctions on National Produce Sales Inc. in Lake Zurich, IL, for violating the Perishable Agricultural Commodities Act.

NPS failed to pay $820,456 to seven sellers for produce that was purchased, received and accepted in interstate and foreign commerce from January 2016 to February 2018. This is in violation of the PACA. NPS cannot operate in the produce industry until Oct. 21, 2022, and then only after they apply for and are issued a new PACA license by USDA.

The company’s principals, Michael Hughes and David El-Aboudi, may not be employed by or affiliated with any PACA licensee until Oct. 21, 2021, 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 resolved approximately 3,625 PACA claims involving more than $104 million. PACA staff also assisted more than 7,600 callers with issues valued at approximately $166 million.

 

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