USDA Lifts Employment Restrictions for McAllen Produce Company Settling PACA Restitution Order

Recently, the US Department of Agriculture (USDA) announced that Prometo Produce Corp., a McAllen, Texas-based company, had settled a $15,400 restitution order issued under the Perishable Agricultural Products Act (PACA) for unpaid produce transactions. This means that the company has fulfilled its obligations and is now permitted to continue operating in the product industry.

Vicente Diaz Moreno has been identified as the sole officer, director, and shareholder of Prometo Produce Corp. As a result of this settlement, he is now allowed to be employed or associated with any PACA licensee. PACA provides a forum for resolving disputes related to produce transactions and may result in USDA issuing reparation orders when contractual obligations are not met in the purchase and sale of fresh and frozen fruits and vegetables.

Under PACA, USDA is required to suspend the license or impose sanctions on unlicensed businesses that fail to pay PACA reparations. Additionally, individuals found to be responsibly associated with such businesses when the order was issued must be approved by USDA to be employed by or associated with any PACA licensee. These individuals include sole proprietors, partners, members, managers, officers, directors, or principal shareholders.

Once the reparation order is fully satisfied and all remaining unpaid awards are cleared, USDA lifts employment restrictions on individuals associated with the business. 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.