USDA files PACA action against Texas company for $400K in missed payments

WASHINGTON, May 23, 2024 – The U.S. Department of Agriculture (USDA) has filed an administrative complaint against Red Wagon Groves Inc. for alleged violations of the Perishable Agricultural Commodities Act (PACA).

The company, operating from Texas, allegedly failed to make payment promptly to 12 produce sellers in the amount of $402,982 from August 2022 through April 2023.

Red Wagon Groves 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.

For more information, contact Corey Elliott, Chief, Investigative Enforcement Branch, at (202) 720-6873 or PACAInvestigations@usda.gov.

Contact Info
Public Affairs
PA@usda.gov
(202) 720-8998
Release No. 089-24