USDA Restricts PACA Violators in Georgia, New Jersey, Nevada and Texas from Operating in the Produce Industry
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on four 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:
- Maya Fresh LLC, operating out of Forest Park, Georgia, for failing to pay a $16,400 award in favor of a Texas seller. As of the issuance date of the reparation order, Doris E. Martinez was listed as a member of the business.
- Havana Produce Inc., operating out of Paterson, New Jersey, for failing to pay an $11,214 award in favor of a Florida seller. As of the issuance date of the reparation order, Peter L. Perez was listed as the officer, director, and major stockholder of the business.
- Paradise Produce LLC, operating out of Las Vegas, Nevada, for failing to pay an $8,197 award in favor of an Idaho seller. As of the issuance date of the reparation order, Eugene J. Hickey, Michael K. Rosenblum and William H. Rosenblum were listed as members of the business.
- The Chop Shop Produce Co. LLC, operating out of San Antonio, Texas, for failing to pay a $7,111 award in favor of a California seller. As of the issuance date of the reparation order, Jamie M. Gonzalez and James R. Smith were listed as members of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; 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. 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.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, 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 3,400 PACA claims involving more than $58 million. PACA staff also assisted more than 8,500 callers with issues valued at approximately $151 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.