USDA Files Action Against Phoenix Produce Company in Illinois for PACA Violations

USDA/AMS Press Release:

WASHINGTON, Jan. 22, 2015 – The U.S. Department of Agriculture (USDA) has filed an administrative action under the Perishable Agricultural Commodities Act (PACA) against Phoenix Produce Company.

The company, operating from Illinois, allegedly failed to make payment to 17 produce sellers in the amount of $987,843 from March 2011 through February 2013.

Phoenix Produce Company 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 for two years. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA. PACA establishes a code of good business conduct for the produce industry. Under it, all interstate traders in fresh and frozen fruits and vegetables must be licensed by USDA. USDA is authorized to suspend or revoke a trader’s license for violating the act.

In the past three years, USDA resolved approximately 4,250 PACA claims involving more than $77 million. Our experts also assisted more than 7,000 callers with issues valued at approximately $11 million. These are just two examples of how the USDA continues to support the fruit and vegetable industry.

For further information, contact Josephine E. Jenkins, Chief, Investigative Enforcement Branch, at (202) 720-6873, by fax at (202) 720-8868, or by email at InvestigativeEnforcement@ams.usda.gov.

Release No.: 248-14

Contact: Nadine Wilkins, (202) 720-8998, nadine.wilkins@ams.usda.gov