In recent news, the U.S. Department of Agriculture (USDA) has announced that Prometo Produce Corp., a Texas-based company, has satisfied a reparation order of $15,400 issued under the Perishable Agricultural Commodities Act (PACA) for unpaid produce transactions. This means that the company has fulfilled its obligations and is now allowed to continue operating in the produce industry.
The sole officer, director, and stockholder of Prometo Produce Corp., Vicente Diaz Moreno, has been identified and is now permitted to be employed by or affiliated with any PACA licensee. The PACA provides a platform 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.
If a business fails to pay PACA reparations or an individual is determined to be responsible for such failures, USDA may suspend their license or impose sanctions on them. These restrictions also apply to individuals who are partners, members, managers, officers, directors, major stockholders or sole proprietors connected to the business when the order is issued. To be employed by or affiliated with any PACA licensee after satisfying a reparation order
