Unpaid Produce Transactions Lead to Repayment and Permission for Prometo Produce Corp. to Continue Operations
Prometo Produce Corp. from McAllen, Texas has recently satisfied a reparation order of $15,400 under the Perishable Agricultural Commodities Act (PACA) for unpaid produce transactions. This means that the company has met its obligations and is now permitted to continue operating in the produce industry.
The PACA provides a forum for resolving disputes related to produce transactions and may result in the USDA issuing reparation orders for damages when contractual obligations are not met in buying and selling fresh and frozen fruits and vegetables. The USDA is required to suspend the license or impose sanctions on unlicensed businesses that fail to pay PACA reparations, as well as impose restrictions on individuals determined to be responsibly connected to the business when the order is issued.
Individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders must have USDA approval to be employed by or affiliated with any PACA licensee once a reparation order is fully satisfied and all outstanding unpaid awards are cleared. For more information on this matter, contact Penny Robinson-Landrigan, Chief of the Dispute Resolution Branch at (202) 720-2890 or email PACAdispute@usda.gov.
