April 14, 2024 2:00 pm
California Business Sanctions by USDA under PACA Lifted

In recent news, Parimar Inc., operating under the name D. DeFranco & Sons, has successfully paid off a $31,200 reparation order issued by the U.S. Department of Agriculture (USDA) under the Perishable Agricultural Commodities Act (PACA). This repayment allows the Los Angeles, Calif.-based company to continue operating in the produce industry.

The officers and major stockholders of the business, Gerald S. DeFranco, Paul F. DeFranco, and Richard J. DeFranco, are now free to be employed by or affiliated with any PACA licensee. PACA serves as an administrative forum for resolving disputes related to produce transactions and often results in reparation orders being issued by the USDA when contractual obligations for buying and selling fresh and frozen fruits and vegetables are not met.

Under PACA, businesses that fail to pay reparations ordered against them may face suspension of their license or sanctions imposed by the USDA. Additionally, individuals determined to be responsibly connected to the business at the time the order is issued may also face employment restrictions until all outstanding unpaid awards have been settled.

For more information on PACA and dispute resolution, individuals can contact Penny Robinson-Landrigan, Chief of the Dispute Resolution Branch at (202) 720-2890 or PACAdispute@usda.gov.

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