Washington, D.C.

The USDA has just announced that it has imposed sanctions on two produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA): Rainbow Produce Company Inc. and Chaparral Fruit Sales Inc.

Phoenix, Arizona-based Rainbow Produce Company is currently restricted from operating in the produce industry for failure to pay a $17,719 award in favor of a Arizona seller. Bruce M. Lincis, Maria Lincis and Lincis Family Trust were listed as the officers, directors, and/or major stockholders of the business at the time of issuance of the reparation order.

San Antonio, Texas-based Chaparral Fruit Sales Inc. is also restricted from operating in the produce industry for failure to pay $13,753 award in favor of a Texas seller. As of the issuance date of the reparation order, Amadeo C. Lopez was listed as the officer, director, and major stockholder of the business.

PACA provides a forum to handle disputes involving produce transactions and outstanding payments. This may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. The USDA is required to impose sanctions on a business that fails to pay PACA reparations as well as impose restrictions against principals held responsible. Those principals held responsibly connected to the business when an order is issued may not be employed by or affiliated with any PACA licensee without USDA-approval.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating under to the PACA. All oversight of actions related to the PACA are conducted by AMS.