The USDA says a Los Angeles-based company has satisfied a $31,200 reparation order issued under the Perishable Agricultural Commodities Act involving unpaid produce transactions.
Parimar Inc., doing business as D. DeFranco & Sons, has met its obligations and is now free to operate in the produce industry. Gerald S. DeFranco, Paul F. DeFranco and Richard J. DeFranco were listed as the officers, directors or major stockholders of the business and may now be employed by or affiliated with any PACA licensee, according to a news release.
PACA provides an administrative forum to handle disputes involving produce transactions. This may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables.
USDA says it is required to suspend the license or impose sanctions on an unlicensed 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.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals.
For more information, contact Penny Robinson-Landrigan, chief of the Dispute Resolution Branch, at 202-720-2890 or PACAdispute@usda.gov.
