The USDA has imposed sanctions on two produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA), according to a news release.
These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PAA-licensed business or other activities without approval from USDA, according to the release.
The release said the following businesses and individuals are currently restricted from operating in the produce industry:
- Cariati Developers Incorporated, operating out of Meriden, Conn., for failing to pay a $20,648 award in favor of an Ohio seller. As of the issuance date of the reparation order, Erica Maher was listed as the officer, director and major shareholder of the business.
- Growers Direct, Inc., operating out of Costa Mesa, Calif., for failing to pay a $4,165 award in favor of a California seller. As of the issuance date of the reparation order, Lixin He was listed as the officer, director and major stockholder of the business.
For more information, contact John Koller, Chief, Dispute Resolution Branch, at (202) 720-2890, or PACAdispute@usda.gov.
