The U.S. Department of Agriculture has imposed sanctions on four 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:

• Atlantic Arasu Inc., operating out of Duluth, GA, for failing to pay a $46,455 award in favor of a North Carolina seller. As of the issuance date of the reparation order, Michael M. Arasu was listed as the officer, director and major stockholder of the business.
• Shefa Appetizing Inc., operating out of Congers, NY, for failing to pay a $45,480 award in favor of a New York seller. As of the issuance date of the reparation order, Aron Kohn was listed as the officer, director and major stockholder of the business.
• Avocados R Us Inc., operating out of Santa Fe Springs, CA, for failing to pay an $11,880 award in favor of a California seller. As of the issuance date of the reparation order, Uriel Arellano was listed as the officer, director and major stockholder of the business.
• Four S Inc., doing business as M&R Produce Distributors, operating out of Swedesboro, NJ, for failing to pay a $11,370 award in favor of a North Carolina seller. As of the issuance date of the reparation order, Bruce M. Schumin 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.