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

• Sun Valley Enterprise Inc., operating out of Bakersfield, CA, for failing to pay a $7,888 award in favor of a California seller. As of the issuance date of the reparation order, Gumecindo Ramirez, Rigoberto Sermeno and Everacdo Vargas were listed as the officers, directors, and/or major stockholders of the business.
• Tab Distributors Inc., doing business as Chicago Mushroom & Produce Co., operating out of Carol Stream, IL, for failing to pay a $60,517 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Thomas E. Gentile, Anthony T. Gentile and Baloinder S. Grewal were listed as the officers, directors, and/or major stockholders of the business.
• Magnolia Brand Produce Inc., operating out of Vardaman, MS, for failing to pay a $145,210 award in favor of a Mississippi seller. As of the issuance date of the reparation order, Richard E. Bailey 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 includes 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.

USDA's Agricultural Marketing Service