Jun 2, 2016

USDA cites Old Fashion Honey Corp for PACA violations

USDA has cited Old Fashion Honey Corp., doing business as U.S. Food Logistics, Delray Beach, Florida, for failure to pay for produce.

The company failed to pay $1,239,751 to five sellers for 30 lots of produce.  This is in violation of the Perishable Agricultural Commodities Act (PACA).  As a result of these actions, Old Fashion Honey Corp., doing business as U.S. Food Logistics, cannot operate in the produce industry until May 23, 2018, at which time it may reapply for a PACA license.

According to USDA, the company’s principal Agustin Salinas may not be employed by or affiliated with any PACA licensee until May 23, 2017, and then only with the posting of a USDA-approved surety bond.

USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period.  Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.

In the past three years, USDA resolved approximately 3,700 PACA claims involving more than $66 million.

For further information, call Josephine E. Jenkins, chief, Investigative Enforcement Branch, at 202-720-6873.