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USDA cites Texas company for PACA violations

The U.S. Department of Agriculture has imposed sanctions on Fresh Produce Inc. in Dallas for violating the Perishable Agricultural Commodities Act.

Fresh Produce failed to pay $374,069 to 15 sellers for produce that was purchased, received and accepted in interstate and foreign commerce from May 2018 to August 2019. This is in violation of the PACA.

Fresh Produce cannot operate in the produce industry until April 16, 2023, and then only after they apply for and are issued a new PACA license by USDA. The company’s principal, Julio Nolasco, may not be employed by or affiliated with any PACA licensee until April 16, 2022, and then only with the posting of a USDA approved surety bond.

USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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, 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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June 18, 2021

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