Sun Produce Specialties cited for unlawful employment, PACA action filed against two companies
Sun Produce Specialties cited for unlawful employment, PACA action filed against two companies
The U.S. Department of Agriculture has cited Phoenix-based Sun Produce Specialties LLC for unlawful employment of an individual under PACA employment restrictions after being given notice by the USDA that the company was not permitted to employ that individual without USDA-approval and the posting of a surety bond. Additionally, the USDA filed an administrative complaint under PACA against Sandia Distributors Inc. and an administrative action against Kentucky-based Gourmet Express LLC.
USDA and Sun Produce Specialties entered into a consent decision and order finding that the company violated section 8(b) of PACA and revoking the company’s PACA license. However, the finding and revocation are in abeyance so long as the company pays a civil penalty of $20,000 no later than July 29. If the company satisfies the terms of the consent decision and order, the finding of violation and license revocation will be permanently abated without further process and the case will be closed.
Sandia Distributors Inc., operating from Arizona, allegedly failed to remit net proceeds to four produce growers in the amount of $1.769 million from May 2014 through May 2015.
Gourmet Express LLC allegedly failed to make full payment to two produce sellers in the amount of $178,580 from February 2015 through March 2015.
Both Sandia and Gourmet Express will have an opportunity to request a hearing. Should USDA find that they committed repeated and flagrant violations, the companies would be barred from the produce industry for two years. Furthermore, principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.
In the past three years, the USDA resolved approximately 3,700 PACA claims involving more than $66 million. Its experts also assisted more than 7,100 callers with issues valued at approximately $100 million.
