Texas Produce Company Satisfies Reparation Order under PACA, Allowing for Continued Operation in Industry

The USDA has recently announced that Prometo Produce Corp., a Texas-based company, has satisfied a reparation order of $15,400 under the Perishable Agricultural Commodities Act (PACA) for unpaid produce transactions. This means that the company has met 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. Vicente Diaz Moreno, identified as the sole officer, director, and stockholder of Prometo Produce Corp., is now allowed to be employed by or affiliated with any PACA licensee.

Under the PACA, individuals determined to be responsibly connected to an unlicensed business that fails to pay reparations can face employment restrictions if their role in the business led to the violation of contractual obligations. These restrictions can include being suspended from working with any PACA licensee until all outstanding reparation orders are fully satisfied and all outstanding unpaid awards are cleared.

For more information on this matter, contact Penny Robinson-Landrigan, Chief of the Dispute Resolution Branch at (202) 720-2890 or email PACAdispute@usda.gov.