Violations and surety bond

USDA announces PACA updates

The U.S. Department of Agriculture (USDA) has filed an administrative complaint against All Fresh Distributors LLC (All Fresh) for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating from Miami, FL, allegedly failed to make payment promptly to four produce sellers in the amount of $339,601 from September 2018 through March 2020.

All Fresh will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.

Employment bond
Also, Lancaster Farms LLC, operating out of Wilson, NC posted a $50,000 surety bond with the USDA to employ John Fowler, as required by PACA.

Fowler was an officer of First Fruits Holdings LLC, Wake Forest, NC, which was found to have committed repeated & flagrant violations of Section 2 of the PACA.

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 will hold the $50,000 surety bond for four years, effective Dec. 29, 2021, providing assurance to the industry that the firm will be able to pay for produce purchased and to conduct its business according to PACA rules.

Click here for an overview of companies that previously violated PACA.

For more information:
Corey Elliott
Tel: +1 (202) 720-6873   

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