USDA Lifts Suspension on Prometo Produce Corp. after Fulfilling Reparation Order under PACA Act

The U.S. Department of Agriculture (USDA) has recently announced that Prometo Produce Corp., based in McAllen, Texas, has fulfilled a reparation order under the Perishable Agricultural Commodities Act (PACA) totaling $15,400. This order was issued due to unpaid produce transactions.

After meeting its obligations, Prometo Produce Corp. is now allowed to resume operations in the produce industry. Vicente Diaz Moreno, the sole officer, director, and stockholder of the company, is also permitted to be employed by or associated with any PACA licensee.

The Perishable Agricultural Commodities Act (PACA) serves as a means to resolve disputes related to produce transactions. When parties fail to meet their obligations in buying and selling fresh and frozen fruits and vegetables, the USDA may issue a reparation order requiring damages to be paid.

If a business or its related individuals do not fulfill a PACA reparation order, USDA is required to suspend their license, impose sanctions, and restrict their ability to work with PACA licensees. These restrictions are lifted once the reparation order is fully satisfied and all outstanding payments are made.

For more information on this issue or for assistance with any PACA-related matters, individuals can contact Penny Robinson-Landrigan, Chief of the Dispute Resolution Branch at (202) 720-2890 or PACAdispute@usda.gov. Additional inquiries can be directed to the USDA Public Affairs Office at PA@usda