USDA Lifts Employment Restrictions on Prometo Produce Corp. Employee Following Reparation Order Satisfaction

In recent news, the U.S. Department of Agriculture (USDA) has 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 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. The individual identified as responsible for 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 the license or impose sanctions on the business, as well as impose restrictions on individuals determined to be responsibly connected to the business when the order is issued. These individuals must have USDA approval to be employed by or affiliated with any PACA licensee. Once all outstanding unpaid awards are cleared and a reparation order is fully satisfied, USDA lifts the employment restrictions on these individuals.

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.