WASHINGTON, Oct. 22, 2010 – The U.S. Department of Agriculture (USDA) has cited O’Lippi & Co. Inc., (O’Lippi) San Francisco, Calif., for failure to make full payment promptly to nine sellers for 131 lots of produce totaling $639,574.36. This is in violation of the Perishable Agricultural Commodities Act (PACA).
As a result of these actions, O’Lippi cannot operate in the produce industry until Oct. 4, 2012, at which time it may reapply for a PACA license.
The company’s principals, W. Dennis Martin and Sally K. Martin, may not be employed by or affiliated with any PACA licensee until Oct. 4, 2011, and then only with the posting of a USDA-approved surety bond.
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 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. The USDA is authorized to suspend or revoke a company’s license for violations of the PACA. 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. This is just one more way the USDA continues to support the fruit and vegetable industry.
For further information contact Phyllis Hall, Director, Trade Practices Section, at (202) 720-6873, by fax at (202) 720-8868, or by email at TradePracticesSection@ams.usda.gov.
Follow us on Twitter to receive the latest press releases, stories, and important updates about the Agricultural Marketing Service at: http://twitter.com/USDA_AMS_NEWS.
USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Ave., S.W., Washington, D.C. 20250-9410 or call (800) 795-3272(voice), or (202) 720-6382 (TDD).