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 for failing to pay reparation awards issued under the Perishable Agricultural Commodities Act. These sanctions include suspending the businesses’ PACA licenses and barring the businesses’ principal operators 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:

• Éclair Inc., operating out of Commerce, CA, for failing to pay a $71,377 reparation award in favor of a California seller. As of the issuance date of the reparation order, Hong Chul Han and Kenny Roh were listed as the officers, directors and major stockholders of the business.
• COOQ Merchants & Consulting Inc., operating out of Miami, for failing to pay a $35,940 reparation award in favor of a Texas seller. As of the issuance date of the reparation order, Alejandro Badilla was listed as the sole officer, director and stockholder of the business.
• Fruver Inc., operating out of Franconia, VA, for failing to pay a $19,026 reparation award in favor of Texas seller. As of the issuance date of the reparation order, Cesar Argueta was listed as the sole officer, director and stockholder of the business.
• SJYS Inc., operating out of Detroit, for failing to pay a $17,779 reparation award in favor of a Michigan seller. As of the issuance date of reparation order, Yousif Shamoon was listed as 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.