USDA files suit against two companies for alleged PACA violations

The United States Department of Agriculture (USDA) has filed an administrative complaint against CFG Produce Inc. for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating out of Texas, allegedly failed to promptly pay six product sellers in the amount of $505,218 from September 2022 to February 2023.

The USDA also filed an administrative complaint against Red Wagon Groves Inc. for alleged PACA violations. The company, operating out of Texas, allegedly failed to promptly pay 12 product sellers in the amount of $402,982 from August 2022 to April 2023.

Both companies will have the opportunity to request a hearing. If the USDA were to find that either company has committed repeated and egregious violations, they would be barred from entering the produce industry as a licensee for three years, or two years with the posting of a USDA approved bond. Additionally, its officers could not be employed or affiliated with a PACA licensee for two years, or one year with the posting of a USDA-approved bond.

Click here for an overview of companies that have already violated PACA.

For more information:
Corey Elliott
USDA
Tel: +1 (202) 720-6873
(email protected)
www.ams.usda.gov