USDA restricts PACA violators in California, Illinois and Texas
USDA restricts PACA violators in California, Illinois and Texas
The U.S. Department of Agriculture has imposed sanctions on three 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:
- Harvest Pro Inc., operating out of Modesto, CA, for failing to pay a $120,714 award in favor of a California seller. As of the issuance date of the reparation order, Danny Castillon was listed as an officer, director and major stockholder of the business.
- Fruit Point Produce Inc., operating out of Chicago, for failing to pay a $9,100 award in favor of a Texas seller. As of the issuance date of the reparation order, Emmanuel Garcia was listed as the officer, director and major stockholder of the business.
- E&R Produce LLC, operating out of McAllen, TX, for failing to pay a $7,491 award in favor of a Missouri seller. As of the issuance date of the reparation order, Eleazar Villarreal was listed as the 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.
