WASHINGTON, April 2, 2021 – The U.S. Department of Agriculture (USDA) announced that SCC International Inc. BB #:260648 satisfied a reparation order in the amount of $7,504 issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transactions.
The Rio Rico, Ariz., company can continue operating in the produce industry upon applying for and being issued a PACA license. Sergio Chamberlain was listed as the officer, director and/or major stockholder of the business and may now be employed by or affiliated with any PACA licensee.
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.
March 8, 2021
In a complaint filed on March 16, 2020, the U.S. Department of Agriculture alleged that Enson Group LLC, doing business as Eternal Food Service in Cincinnati, failed to make full payment promptly in the total amount of $707,592 to 12 sellers for multiple lots of produce in violation of the Perishable Agricultural Commodities Act. In this case, Enson Group paid sellers for produce, but not promptly pursuant to the PACA.
After the complaint was filed, USDA and Enson Group entered into a consent decision and order in which it agreed to pay a civil penalty in the amount of $6,500 for making untimely payments to sellers for produce purchases. As a result of Enson Group satisfying the terms of the consent decision and order, the finding that it had committed repeated and flagrant PACA violations was permanently abated without further process and the case has been closed.
California firm posts two $250,000 employment bonds
Los Angeles Produce Distributors LLC, operating out of Los Angeles, Calif., has posted two $250,000 surety bonds to employ Fernando Patoja and Tony Perez, as required by the Perishable Agricultural Commodities Act.
Rain Forest Produce Inc., Los Angeles, Calif., failed to pay multiple awards issued against the company. Fernando Patoja and Tony Perez were listed as the officers, directors and/or major stockholders of the business at the time of the violations.
Any PACA licensee wishing to employ individuals who have failed to pay a reparation award, or have been subject to a USDA disciplinary action, must post a USDA-approved surety bond.
USDA restricts PACA violators in California, Florida, New York and Texas
The U.S. Department of Agriculture has imposed sanctions on five 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. These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.
The following businesses and individuals are currently restricted from operating in the produce industry:
Jind Produce Inc., operating out of Los Angeles, Calif., for failing to pay a $37,437 award in favor of a California seller. As of the issuance date of the reparation order, Bhagatveer Singh and Akwant Kaur were listed as the officers, directors and/or major stockholders of the business.
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