In recent news, the U.S. Department of Agriculture (USDA) announced that Prometo Produce Corp., a company based in McAllen, Texas, 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 PACA provides a forum 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. The sole officer, director, and stockholder of Prometo Produce Corp., Vicente Diaz Moreno, is now allowed to be employed by or affiliated with any PACA licensee.
If an unlicensed business fails to pay PACA reparations, the USDA is required to suspend its license or impose sanctions on it. Additionally, individuals determined to be responsibly connected to the business when the order is issued must have USDA approval before they can be employed by or affiliated with any PACA licensee. These individuals include sole proprietors, partners, members, managers, officers, directors, or major stockholders.
Once a reparation order is fully satisfied and all outstanding unpaid awards are cleared, USDA lifts the employment restrictions on these individuals. For more information on this matter, contact Penny Robinson-Landrigan at (202) 720-2890 or email [PACAdispute@usda](mailto:PACAdispute@usda).