Nadine Wilkins (202) 720-8998nadine.wilkins@ams.usda.gov
WASHINGTON, May 16, 2013 – The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
--G & S Melons LLC, operating out of Dover, Fla., for failing to pay a $33,955 award in favor of a Michigan seller. As of the issuance date of the reparation order, John G. Grizzaffe was listed as a member of the business.
--Dave’s Direct LLC, operating out of Washington, Utah, for failing to pay a $20,830 award in favor of an Arizona seller. As of the issuance date of the reparation order, Daniel Webster was listed as a member of the business.
--Cut Fresh Produce Inc., operating out of Sioux City, Iowa, for failing to pay a $4,068 award in favor of a California seller. As of the issuance date of the reparation order, Harry D. Cutler was listed as the officer, director, and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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 businesses 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.
In the past three years, USDA resolved approximately 5,000 claims filed under PACA involving almost $96 million. This is just one more way USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.
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