California Business Sanctions by USDA under PACA Lifted

The USDA recently announced that Parimar Inc., doing business as D. DeFranco & Sons, has successfully paid off 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 free to be employed by or affiliated with any PACA licensee. PACA serves as an administrative forum to resolve disputes related to produce transactions and often results in reparation orders being issued by the USDA for damages owed when contractual obligations for buying and selling fresh and frozen fruits and vegetables are not met.

If a business fails to pay PACA reparations ordered against them, the USDA is required to suspend their license or impose sanctions on them, as well as restrict 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 these employment restrictions on those 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

By Samantha Johnson

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