USDA Clarifies PACA Reparation Sanctions On Mark Sandler In Maine

AMS No. 124-11

Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.gov

WASHINGTON, June 9, 2011 – The U.S. Department of Agriculture (USDA) has announced that Mark Sandler, a former principal of Sandler Bros., located in Biddeford, Maine, has not been under employment restrictions since March 20, 2009. Mark Sandler officially resigned from Sandler Bros. effective March 20, 2009. Since this date, Mark Sandler has been eligible to be employed by or affiliated with any Perishable Agricultural Commodities Act (PACA) licensee.

Sandler Bros., remains under sanction for failure to pay two reparation awards issued under the PACA. The remaining responsibly connected officers, directors, and stockholders of Sandler Bros. are Candice J. Obrien and Marjorie L. Sandler. They cannot be employed or affiliated with any PACA licensee, unless, the employing company posts a USDA-approved surety bond. Their restrictions remain in effect until July 24, 2011.

PACA provides for an administrative forum to handle disputes over produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. The USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it and imposes restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.

Once a reparation order is fully satisfied, the PACA lifts the employment restrictions of the previously named responsibly connected individual. PACA will only reinstate the license of a business to an active status if all reparation awards have been satisfied and if the license has not entered a terminated status.

The Agricultural Marketing Service (AMS), PACA Branch, regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.

In fiscal year 2010, USDA resolved approximately 2,000 claims filed under the PACA involving $30 million in their continued efforts to serve and protect the fruit and vegetable industry from unlawful trade practices.

For more information, contact John Koller, Director, Dispute Resolution Section at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.

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