In the past three years, the U.S. Department of Agriculture 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. On Nov. 12, the USDA cited Taylor Produce for failing to pay nearly $4 million to multiple sellers and provided updates concerning six other companies.

Taylor Produce fails to pay $3.94 million

The USDA on Nov. 12 cited Taylor Produce LLC in Rigby, ID, for failure to pay $3,943,926 to five sellers for 605,492 net hundredweight of potatoes that were purchased, received and accepted in interstate commerce from June 2013 through December 2013.  This is in violation of the Perishable Agricultural Commodities Act. As a result of these actions, Taylor Produce LLC cannot operate in the produce industry until Oct. 30, 2017, at which time they may reapply for a PACA license.

The company’s principals, Alan L. Taylor and Alan Taylor Produce, may not be employed by or affiliated with any PACA licensee until Oct. 30, 2016, and then only with the posting of a USDA-approved surety bond.

Four produce businesses fail to pay reparation awards

The USDA also imposed sanctions on four produce businesses on Nov. 12 for failure to pay reparation awards issued under the PACA. The following businesses and individuals are currently restricted from operating in the produce industry:

• Economic Tropical Foods Ltd., operating out of Rochester, NY, for failing to pay a $243,986 award in favor of a Florida seller. As of the issuance date of the reparation order, Frank Oliveri was listed as the officer, director and major stockholder of the business.
• J. T. Fruit Co. Inc., operating out of McAllen, TX, for failing to pay a $3,600 award in favor of a Texas seller. As of the issuance date of the reparation order, James T. Obst was listed as the officer, director and major stockholder of the business.
• Jacobs Village Farm, operating out of Brooklyn, NY, for failing to pay a $32,357 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Jacob Yusifov was listed as the officer, director and major stockholder of the business.
• Lau Enterprises II Inc., operating out of Miami, for failing to pay a $25,214 award in favor of a Florida seller. As of the issuance date of the reparation order, Leonardo Gonzalez was listed as the officer, director and major stockholder of the business.

RJ Produce Inc posts $100,000 bond to employ Jose Cardenas

Under regulations of the PACA, RJ Produce Inc., operating in Pharr, TX, on Nov. 12 posted a $100,000 surety bond with the USDA to employ Jose Cardenas, previously named in a PACA action.

Cardenas was the president, secretary, treasurer and a stockholder of Unique Produce Corp. in Riverside, CA, a company that failed to pay reparation awards issued against it under the PACA.

Any PACA licensee wishing to employ individuals who have failed to pay a reparation award or have been subject to a USDA disciplinary action, must post a USDA-approved surety bond.

USDA will hold the $100,000 bond for four years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct its business according to PACA rules.

Cross Country International satisfies reparation order

The USDA announced Nov. 12 that Cross Country International LLC satisfied a reparation order issued under the PACA. The McAllen, TX, company can continue operating in the produce industry upon applying for and being issued a PACA license.

Jaime De La Paz and Gustavo Felix J. Ramirez were listed as members of the business and may now be employed by or affiliated with any PACA licensee.