Release No.: 067-15WASHINGTON, May 7, 2015 – The U.S. Department of Agriculture (USDA) has filed an administrative complaint under the Perishable Agricultural Commodities Act (PACA) against The Square Group LLC.The company, operating from California, allegedly failed to make payment to 32 produce sellers in the amount of $1,190,177 from October 2013 through August 2014.The Square Group LLC will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. Furthermore, its 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.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. All oversight of actions related to PACA are conducted by AMS, an agency within USDA. PACA establishes a code of good business conduct for the produce industry. Under it, all interstate traders in fresh and frozen fruits and vegetables must be licensed by USDA. USDA is authorized to suspend or revoke a trader’s license for violating the act.In the past three years, USDA resolved approximately 4,250 claims filed under the PACA involving $77 million. Our experts also assisted more than 7,000 callers with issues valued at approximately $110 million. These are just two examples of how 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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