WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

According to a press release, the following businesses and individuals are currently restricted from operating in the produce industry:

• K & D Produce Inc., operating out of New York, New York, for failing to pay a $20,985 award in favor of a New York seller.  As of the issuance date of the reparation order, Bing Qia Chen was listed as the officer, director and major stockholder of the business.
• Get Fresh Produce Distributors Inc., operating out of Los Angeles, California, for failing to pay a $1,684 award in favor of an Arizona seller.  As of the issuance date of the reparation order, Zabdi Reyes was listed as the officer, director and major stockholder of the business.
• E Cortez Corporation, operating out of Nipomo, California, for failing to pay an $11,885 award in favor of a California seller. As of the issuance date of the reparation order, Emilio Cortez was listed as the officer, director and major stockholder of the business.

The PACA Division, which is part of USDA’s Agricultural Marketing Service (AMS), regulates fair trading practices of produce businesses that are operating subject to PACA including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.

In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Its experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

Agricultural Marketing Service