Release No.: 166-15
WASHINGTON, Dec. 14, 2015 – The U.S. Department of Agriculture (USDA) has cited Allens Inc., of Siloam Springs, Ark., for failure to pay for produce.
The company failed to pay $9,759,843 to 40 produce sellers for 2,312 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, Allens Inc. cannot operate in the produce industry until Dec. 2, 2017, at which time it may apply for a PACA license.
The company’s principals, have challenged their responsibly connected status.
USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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.
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 3,700 claims involving more than $66 million. Our experts also assisted more than 7,100 callers with issues valued at approximately $100 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, or by email at PACAInvestigations@ams.usda.gov.
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