USDA restricts PACA violators in California and Pennsylvania
USDA restricts PACA violators in California and Pennsylvania
The U.S. Department of Agriculture has imposed sanctions on three produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act. These sanctions include suspending the businesses’ PACA licenses and barring the businesses’ principal operators from engaging in PACA-licensed business or other activities without USDA approval.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Chef Mumsie’s Brands LLC, operating out of Dana Point, CA, for failing to pay a $31,098 award in favor of a Florida seller. As of the issuance date of the reparation order, Bridgette Horton was listed as the member/manager of the business.
- SMCA Operations LLC, operating out of Pittsburgh, for failing to pay a $14,441 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Abdullah Salem was listed as the member/manager of the business.
- Jim Pandol & Co. Inc. operating out of Selma, CA, for failing to pay a $6,200 award in favor of a Texas seller. As of the issuance date of the reparation order, James A. Pandol was listed as the officer, director and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables.
USDA is required to suspend the license or impose sanctions on an unlicensed 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.