The U.S. Department of Agriculture has found Nicholas Allen responsibly connected to Allens Inc. in Siloam Springs, AR, which failed to pay $9.76 million to 40 produce sellers for 2,312 lots of produce. This is in violation of the Perishable Agricultural Commodities Act.

Allen challenged the initial determination that he was responsibly connected to Allens Inc. However, the USDA recently affirmed that Allen was responsibly connected to the company during the violation period.

As a result, Allen may not be employed or affiliated with any PACA licensee until Sept. 25, 2020, and then only with the posting of a USDA-approved surety bond. In addition, he cannot be licensed in the produce industry until Sept. 25, 2021, and then only with the posting of a USDA-approved surety bond.

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 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.