WASHINGTON, D.C. - The USDA has imposed sanctions on two produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

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

• Lansal Inc., doing business as Hot Mama’s Foods of Springfield, MA, for failing to pay a $156,751 award in favor of an Oregon seller. As of the issuance date of the reparation order, Matthew D. Morse was listed as the Officer, Director, and major stockholder of the business. Another principal of the business at the time of the order was Joseph D. Ward. He has challenged his responsibly connected status. 
• San Jose Trading LLC of Nashville, TN, for failing to pay a $13,500 award in favor of a California seller. As of the issuance date of the reparation order, Enrique Lozano Dominguez was listed as a member of the business. 

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.

In the past three years, USDA resolved approximately 4,250 PACA claims involving more than $77 million. USDA experts have also assisted more than 7,000 callers with issues valued at approximately $110 million. Individuals, including sole proprietors, Partners, members, Managers, Officers, Directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service, PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.

Agricultural Marketing Service