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USDA restricts PACA violators in California, Florida

The U.S. Department of Agriculture has imposed sanctions on four produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act. These sanctions 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.

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

  • VIP Marketing Inc., operating out of Los Angeles, for failing to pay a $310,906 award in favor of a California seller. As of the issuance date of the reparation order, Jesse Martin and Christopher Martin were listed as the officers, directors and major stockholders of the business.
  • Buy Right Produce LLC, operating out of Morgan Hill, CA, for failing to pay a $56,987 award in favor of a California seller. As of the issuance date of the reparation order, Ruby Naranjo was listed as a member of the business.
  • Kings Avocados USA Inc., operating out of Los Angeles, for failing to pay a $26,482 award in favor of a California seller. As of the issuance date of the reparation order, Daniel Gonzalez, Francisco Gonzalez and Ignacio Andrade Barragan were listed as the officers, directors and major stockholders of the business.
  • Latin Produce LLC, operating out of Miami, for failing to pay a $3,500 award in favor of a California seller. As of the issuance date of the reparation order, Otto Paz was listed as a member of the business.

In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $165 million. PACA staff also assisted more than 6,600 callers with issues valued at approximately $169 million.

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