Public Affairs
WASHINGTON, June 20, 2024 – The U.S. Department of Agriculture (USDA) has cited Frozen Food Development Inc., Lancaster, Pa., for failure to pay for produce.
USDA filed a complaint in January 2023 alleging that Frozen Food failed to pay $2,479,131 to 22 sellers for produce that was purchased, received and accepted in interstate and foreign commerce from July 2021 to June 2022.
The parties subsequently agreed to a Consent Decision and Order finding that Frozen Food committed willful, repeated and flagrant violations of the Perishable Agricultural Commodities Act (PACA) by failing to pay $2,479,131 to 22 sellers for produce from July 2021 to June 2022. One seller remains unpaid in the amount of $1,002,065.
As a result of the violations, Frozen Food is not eligible to apply for a PACA license until May 30, 2026. Furthermore, the company’s sole shareholder and principal, Gary Gregory, may not be employed by or affiliated with any PACA licensee until May 30, 2025, and then only with the posting of a USDA-approved surety bond.
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.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
For further information, contact Corey Elliott, Chief, Investigative Enforcement Branch, at (202) 720-6873 or PACAInvestigations@usda.gov.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry. In the past three years, USDA handled more than 2,340 cases valued at $126.3 million. PACA staff also assisted over 5,600 callers with issues valued at $146.7 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
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