USDA restricts PACA violators in California, Texas and Minnesota
USDA restricts PACA violators in California, Texas and Minnesota
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 for 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:
- Marlo Produce Distributor LLC, operating out of Owatonna, MN, for failing to pay a $77,776 award in favor of a Washington seller. As of the issuance date of the reparation order, Fabiola Martinez and Lizbeth Ferreyra were listed as the members of the business.
- JJAE Holdings LLC, operating out of Orcutt, CA, for failing to pay a $34,802 award in favor of a California seller. As of the issuance date of the reparation order, Juan Cardenas Sr. and BBB Cardenas Trust, Juan Cardenas were listed as the members of the business.
- Itamp Inc., operating out of Dallas, for failing to pay a $13,697 award in favor of a Arizona seller. As of the issuance date of the reparation order, Luis Armando Lopez 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.
