The U.S. Department of Agriculture (USDA) has recently announced that Prometo Produce Corp., 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 permitted to continue operating in the produce industry.
Vicente Diaz Moreno was identified as the sole officer, director, and stockholder of Prometo Produce Corp. He is now allowed to be employed by or affiliated with any PACA licensee. 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.
Under the Perishable Agricultural Commodities Act (PACA), individuals who fail to pay PACA reparations can face severe consequences, including suspension or revocation of their business license, as well as restrictions on employment opportunities. These restrictions apply to all individuals involved in the business who are determined to be responsible for non-payment of the order, including sole proprietors, partners, members, managers, officers, directors, or major stockholders.
The USDA takes these measures very seriously and will continue to enforce compliance with PACA regulations to protect consumers from fraudulent practices in the produce industry. If you have any questions about PACA regulations or reparation orders issued under this act, contact Penny Robinson-Landrigan at (202) 720-2890 or email her at [PACAdispute@usda.gov](mailto:PACAdispute@usda.gov).