WASHINGTON, DC - The United States Department of Agriculture (USDA) recently announced it has imposed sanctions on four produce businesses in California, Florida, and Texas. The companies were sanctioned for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

Sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.

Direct from the USDA Agricultural Marketing Service:

The following businesses and individuals are currently restricted from operating in the produce industry:

• West Central Produce, operating out of Norwalk, California, for failing to pay a $117,277 award in favor of a California seller. As of the issuance date of the reparation order, Jamie Purcell and Michael P. Dodo were listed as the officers, directors, and/or major stockholders of the business
• Elirey Group, doing business as Hank’s Farmer Market, operating out of Jurupa Valley, California, for failing to pay a $22,137 award in favor of a California seller. As of the issuance date of the reparation order, Elizabeth Reynoso and Manuel I. Reynoso were listed as the officers, directors, and/or major stockholders of the business
• Peak Seasons Produce, operating out of Miami Lakes, Florida, for failing to pay a $113,834 award in favor of an Oregon seller. As of the issuance date of the reparation order, Justin Daye was listed as the manager of the business
• Avonature, operating out of Houston, Texas, for failing to pay a $29,003 award in favor of a Texas seller. As of the issuance date of the reparation order, Cecilia Rodriguez Palomo and Fernando Ochoa Rodriguez were listed as members and managers of the business

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it, as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.

By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

For contact information and to read the release in its entirety, click here.