WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has imposed sanctions on two 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:

• K & A Produce, operating out of Staten Island, NY, for failing to pay a $5,258 award in favor of a Florida seller. As of the issuance date of the reparation order, Rodin R. Diaz was listed as the officer, director, and major stockholder of the business.
• Golden Fruit Company LLC, operating out of San Diego, CA, for failing to pay a $267,982 award in favor of a Mexico seller. As of the issuance date of the reparation order, Jose Eduardo Francis Alarcon and Marlon A. Maurasse were listed as members of the business.

The 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, the USDA resolved approximately 3,700 PACA claims involving more than $66 million. Its experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

Agricultural Marketing Service