USDA Cites California Fresh Citrus Company in California for PACA Violations

WASHINGTON, July 19, 2024 - The U.S. Department of Agriculture (USDA) has imposed sanctions on California Fresh Citrus Company, Porterville, Calif., for violating the Perishable Agricultural Commodities Act (PACA). These sanctions include barring the business and the principal operator of the business from engaging in PACA-licensed business or other activities without approval from USDA.<_o3a_p>

California Fresh Citrus Company failed to pay $1,128,040 to two sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from March 2019 to March 2020. This is in violation of the PACA. California Fresh Citrus Company cannot operate in the produce industry until March 28, 2026, and then only after they apply for and are issued a new PACA license by USDA.<_o3a_p>

The company's principals, Vincent Lobue and Christine Lobue, may not be employed by or affiliated with any PACA licensee until March 28, 2025, and then only with the posting of a USDA approved surety bond.<_o3a_p>

USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. Those individuals, including sole proprietors, partners, members, managers, officers, directors or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.<_o3a_p>

By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.<_o3a_p>

For further information, contact Corey Elliott, Chief, Investigative Enforcement Branch, at (202) 720-6873 or [email protected].

The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry. In the past three years, USDA handled more than 2,340 cases valued at $126.3 million. PACA staff also assisted over 5,600 callers with issues valued at $146.7 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

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