The USDA has imposed sanctions on Ayar Produce NY, Inc. (Ayar Produce), Brooklyn, N.Y., for violating the Perishable Agricultural Commodities Act.
These sanctions include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA, according to a news release.
Ayar Produce failed to pay $720,226 to 14 sellers for produce that was purchased, received and accepted in interstate and foreign commerce from February 2020 to September 2020, according to the release. This is in violation of the PACA. Ayar Produce cannot operate in the produce industry until May 16, 2024, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principal, Necati Ayar, may not be employed by or affiliated with any PACA licensee until May 16, 2023, and then only with the posting of a USDA approved surety bond, the USDA said.
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.
