The U.S. Department of Agriculture (USDA) has filed an administrative complaint against CFG Produce Inc. for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating from Texas, allegedly failed to make payment promptly to six produce sellers for $505,218 from September 2022 through February 2023.
USDA has also filed an administrative complaint against Red Wagon Groves Inc. for alleged violations of the PACA. The company, operating from Texas, allegedly failed to make payment promptly to 12 produce sellers for $402,982 from August 2022 through April 2023.
Both companies will have an opportunity to request a hearing. Should USDA find that either 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
USDA
Tel: +1 (202) 720-6873
[email protected]
www.ams.usda.gov