$1M PACA violations lead to sanctions for two different companies

Date: 
Wednesday, 29 April 2020 - 12:00pm

paca artAs a part of its efforts to enforce the Perishable Agricultural Commodities Act and ensure fair trading practices within the U.S. produce industry, the U.S. Department of Agriculture has imposed sanctions on Hunter Bros. Inc. and Cruisin’ On Inc., d.b.a. The Produce Network and Diamond Produce Wholesalers & Packers Inc. Hunter, operating from Pennsylvania, allegedly failed to make payment promptly to 26 produce sellers in the amount of $1.26 million, while Florida-based Cruisin’ On failed to pay $1.14 million to four sellers for produce.

Cruisin’ and Diamond cannot operate in the produce industry until March 4, 2022, and then only after they apply for and are issued a new PACA license by USDA. The company’s principal, Joseph Thornton, may not be employed by or affiliated with any PACA licensee until March 4, 2021, and then only with the posting of a USDA approved surety bond.

Hunter Bros. Inc. will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.

In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million.

About D. Otani Produce

In business since 1989, D. Otani Produce, Inc. has grown into one of Hawaii’s largest produce wholesalers, enjoying business with hotels, restaurants, local business institutions. We are also a major distributor to Hawaii’s retailers.

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D. Otani Produce
1321 Hart St
Honolulu, HI 96817

Phone: (808) 509-8350

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