WASHINGTON, DC - After allegedly failing to pay produce sellers a combined $62,195, the United States Department of Agriculture (USDA) has imposed sanctions on Minnesota-based J&J Distributing as well as New York-based Produce Depot USA. In addition to failing to pay sellers a combined $62,195, the two businesses failed to meet contractual obligations to the sellers of produce and did not pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

The sanctions imposed include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.

Direct from the USDA Agricultural Marketing Service:

The following businesses and individuals are currently restricted from operating in the produce industry:

• J & J Distributing Co., operating out of St. Paul, Minnesota, for failing to pay a $19,655 award in favor of a California seller. As of the issuance date of the reparation order, New Harvest Foods and Jason Jaynes were listed as the officers, directors, and major stockholders of the business
• Produce Depot USA, operating out of the Bronx, New York, for failing to pay a $42,540 award in favor of a Texas seller. As of the issuance date of the reparation order, Gaetano Balzano was listed as member and/or manager of the business

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order 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.

By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

For contact information, and to read the release in its entirety, click here.

USDA Agricultural Marketing Service