In a complaint filed on March 21, 2024, the U.S. Department of Agriculture (USDA) alleged that Safeway Fresh Foods LLC, Vineland, N.J., failed to make full payment promptly in the total amount of $3,863,509 to 13 sellers for multiple lots of produce in violation of the Perishable Agricultural Commodities Act (PACA).
After the complaint was filed, USDA and Safeway Fresh Foods LLC entered into a Consent Decision and Order wherein Safeway Fresh Foods LLC agreed to pay the unpaid produce sellers listed in Appendix A to the Complaint and to pay a civil penalty for $60,000. As a result of Safeway Fresh Foods LLC 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.
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USDA also announced that Tabasco Produce LLC satisfied a $3,008 reparation order issued under PACA involving unpaid produce transactions. The McAllen, Texas, company has met its obligations and is now free to operate in the produce industry. Francisco M. Gaspar was listed as the member of the business and may now be employed by or affiliated with any PACA licensee.
USDA has also filed an administrative complaint against Kendall Frozen Fruits Inc. for an alleged violation of PACA. The company, operating from California, allegedly failed to make payments promptly to two produce sellers for $2,166,335 from May 2017 through July 2018.
Kendall Frozen Fruits Inc. 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.
Click here for an overview of companies that previously violated PACA.
For more information:
Corey Elliott (administrative complaint)
USDA
Tel: +1 (202) 720-6873
PACAInvestigations@usda.gov
www.ams.usda.gov
Penny Robinson-Landrigan (reparation order)
USDA
Tel.: +1 (202) 720-2890
PACAdispute@usda.gov
www.ams.usda.gov
Investigative Enforcement Branch (complaint)
USDA
Tel: +1 (202) 720-6873
PACAInvestigations@usda.gov
www.ams.usda.gov