USDA restricts PACA violators in California and Florida
USDA restricts PACA violators in California and Florida
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 USDA approval.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Ingles Produce Inc., operating out of Boca Raton, FL, for failing to pay a $145,879 award in favor of a Georgia seller. As of the issuance date of the reparation order, Kareem A. Ingleton was listed as the officer, director and major stockholder of the business.
- Orchard Sweet Produce Inc., operating out of Dinuba, CA, for failing to pay a $68,009 award in favor of a California seller. As of the issuance date of the reparation order, Francisco J. Sanchez was listed as the officer, director and major stockholder of the business.
- Green Explosion Inc., operating out of Miami, for failing to pay a $7,359 award in favor of a Florida seller. As of the issuance date of the reparation order, Libia C. Gomez was listed as the officer, director and major 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.
