The U.S. Department of Agriculture has imposed sanctions on five produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and for failing to pay reparation awards issued under the Perishable Agricultural Commodities Act. These sanctions include suspending the businesses’ PACA licenses and barring the businesses’ principal operators from engaging in PACA-licensed business or other activities without USDA approval.

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

• Banana Bros. Produce LLC, operating out of Holly, MI, for failing to pay a $23,033 reparation award in favor of a Michigan seller. As of the issuance date of the reparation order, Chelsey Gelardi was listed as the sole member of the business.
• Fresh Garlic & Produce Corp., operating out of Miami, for failing to pay a $14,076 reparation award in favor of a New Jersey seller. As of the issuance date of the reparation order, Ricardo Hernandez Leon was listed as the sole officer, director, and stockholder of the business.
• BLJR Distribution LLC, operating out of Conklin, NY, for failing to pay a $13,595 reparation award in favor of a California seller. As of the issuance date of the reparation order, Bradley Hurlburt, Leon Hurlburt, and Albert Palermo were listed as the business members.
• Fresh Market La Morenita LLC, operating out of Von Ormy, TX, for failing to pay a $11,201 reparation award in favor of a Texas seller. As of the issuance date of the reparation order, Rocio Gonzalez was listed as the sole business member.
• Samra Produce & Farms Inc., operating out of Los Angeles, for failing to pay a $4,004 reparation award in favor of a California seller. As of the issuance date of the reparation order, Harbhajan Singh was listed as the sole officer, director, and stockholder 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.