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California Business Sanctions by USDA under PACA Lifted

In recent news, Parimar Inc., operating as D. DeFranco & Sons, has successfully fulfilled a $31,200 reparation order issued under the Perishable Agricultural Commodities Act (PACA) for unpaid produce transactions. This allows the Los Angeles, Calif., based company to continue operating in the produce industry. The officers and major stockholders of the business, Gerald S. DeFranco, Paul F. DeFranco, and Richard J. DeFranco, are now able to be employed by or affiliated with any PACA licensee.

PACA serves as an administrative forum to resolve disputes related to produce transactions, often resulting in reparation orders issued by the USDA for damages owed when contractual obligations for buying and selling fresh and frozen fruits and vegetables are not met. The USDA is required to suspend the license or impose sanctions on businesses that fail to pay PACA reparations ordered against them, as well as impose restrictions on individuals determined to be responsibly connected to the business at the time the order is issued.

Once a reparation order is completely satisfied and all outstanding unpaid awards are settled, USDA lifts the employment restrictions on the individuals connected to the business. For more information on PACA and dispute resolution, individuals can contact Penny Robinson-Landrigan, Chief of the Dispute Resolution Branch at (202) 720-2890 or PACAdispute@usda.gov

By Samantha Jones

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