In a recent announcement, the U.S. Department of Agriculture (USDA) declared that Prometo Produce Corp., based in McAllen, Texas, had fully 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 the sole officer, director, and stockholder of Prometo Produce Corp., Vicente Diaz Moreno, is now allowed to be employed by or affiliated with any PACA licensee.
Under the PACA, unlicensed businesses that fail to pay reparations may have their license suspended or face sanctions imposed by the USDA. Additionally, individuals determined to be responsibly connected to such businesses must have USDA approval before being employed by or affiliated with any PACA licensee. Once a reparation order is fully satisfied and all outstanding unpaid awards are cleared, USDA lifts 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](mailto:PACAdispute@usda.gov).