WASHINGTON, March 31, 2014 – The U.S. Department of Agriculture (USDA) has cited Osteen Marketing LLC, of Waupun, Wis., for failure to pay for produce.
The company failed to pay $447,519 to six sellers for 45 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, Osteen Marketing LLC cannot operate in the produce industry until Feb. 19, 2016, at which time it may apply for a PACA license.
The company’s sole principal, William P. Osteen, may not be employed by or affiliated with any PACA licensee until Feb. 19, 2015, and then only with the posting of a USDA-approved surety bond before being employed by or affiliated with a PACA licensee.
Under PACA provisions, those individuals held responsibly connected to PACA violations including sole proprietors, partners, members, officers, directors, and stockholders, may not be employed by or affiliated with any PACA licensee without USDA-approval.
The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. USDA is authorized to suspend or revoke a company’s license for violations of PACA. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.
In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. This is just one more way USDA continues to support the fruit and vegetable industry.
For further information, contact Josephine E. Jenkins, Chief, Investigative Enforcement Branch, at (202) 720-6873, by fax at (202) 720-8868, or by email at InvestigativeEnforcement@ams.usda.gov.
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