Lakeside Produce Inc.’s failure to pay a $667,833 reparation under the Perishable Agricultural Commodities Act has prompted the USDA to enforce strict sanctions, including employment restrictions on company leader Chris Cervini.

The U.S. Department of Agriculture (USDA) has reaffirmed that Chris Cervini held a responsible connection with Lakeside Produce Inc., based in Taylor, Michigan. This determination updates the USDA’s Press Release No: 180-24, originally issued on December 18, 2024.

Lakeside Produce Inc. was found to be in violation of the Perishable Agricultural Commodities Act (PACA) after failing to pay a reparation award of $667,833 to a Michigan-based seller.

The USDA has imposed strict sanctions on the company in response to this breach. These sanctions include a prohibition on all principals from being employed by or affiliated with any PACA licensee without prior approval from the USDA.

Initially, the USDA determined that Chris Cervini was responsible for the misconduct at Lakeside Produce Inc. Cervini challenged this initial finding; however, the USDA has now concluded that he was indeed responsibly connected to the company at the time the violation occurred.

According to the USDA’s updated report, as a result of this determination, Cervini is barred from employment or affiliation with any PACA licensee unless he obtains USDA approval and posts a USDA-approved surety bond.

This enforcement action underscores the USDA’s commitment to upholding the standards set forth by PACA and ensuring accountability within the agricultural commodities sector.