California Firm Posts $250,000 Employment Bond

USDA/AMS Press Release:

Release No.: 184-14

Contact: Nadine Wilkins, (202) 720-8998, nadine.wilkins@ams.usda.gov

WASHINGTON, July 28, 2014 – Under regulations of the Perishable Agricultural Commodities Act (PACA), Dayka & Hackett LLC, operating in Reedley, Calif., posted a $250,000 surety bond.

The bond was required in order to employ Jerald Downs, previously named in a PACA action. Jerald Downs was the only officer of Market 52 Inc., Kingsburg, Calif., which was found to have committed repeated and flagrant violations of Section 2 of PACA.

Any PACA licensee wishing to employ individuals who have failed to pay a reparation award or have been subject to a USDA disciplinary action, must post a USDA-approved surety bond.

USDA will hold the $250,000 bond for four years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct its business according to PACA rules.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce companies operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. USDA is authorized to suspend or revoke a company’s license for violations of PACA. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. This is just one more way USDA continues to support the fruit and vegetable industry.