USDA Restricts PACA Violators in Arizona, California, Florida and New York 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:
- Frank M. Minardo LLC, operating out of Gilbert, Arizona, for failing to pay a $26,308 award in favor of a Washington seller. As of the issuance date of the reparation order, Frank M. Minardo was listed as a member of the business.
- Ricardo Betancourt, doing business as Betancourt Produce, operating out of Los Angeles, California, for failing to pay a $31,230 award in favor of a California seller. As of the issuance date of the reparation order, Ricardo J. Betancourt was listed as the sole proprietor of the business.
- Seasons Best Produce Corporation, operating out of Lutz, Florida, for failing to pay a $16,400 award in favor of a North Carolina seller. As of the issuance date of the reparation order, Jason A. Canals was listed as the officer, director, and major stockholder of the business.
- Exclusive Produce Inc., operating out of Brooklyn, New York, for failing to pay a $21,375 award in favor of a Nevada seller. As of the issuance date of the reparation order, Farid Isakov was listed as the officer, director, and major stockholder 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.