The U.S. Department of Agriculture imposed sanctions on nine 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 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:

• Joe Granato, Inc., operating out of Salt Lake City for failing to pay a $368,598 award in favor of a Minnesota seller. As of the issuance date of the reparation order, Michael McCarty and Michael Tangaro were listed as the officers, directors and/or major stockholders of the business.
• New Nature Farm Supermarket Inc., operating out of Little Neck, NY, for failing to pay a $155,105 award in favor of a New York seller. As of the issuance date of the reparation order, Zhi Xin Hao was listed as the officer, director and major stockholder of the business.
• Price International Trading LLC, operating out of Doral, FL, for failing to pay a $121,681 award in favor of a Texas seller. As of the issuance date of the reparation order, Ivan Delgado was listed as the manager of the business.  
• JD Produce Maspeth LLC, operating out of Maspeth, NY, for failing to pay a $56,562 award in favor of a Florida seller. As of the issuance date of the reparation order, Shengbo Dong was listed as the member/manager of the business.
• Bama Tomato Co. Inc., operating out of Birmingham, AL, for failing to pay a $45,250 award in favor of a Florida seller. As of the issuance date of the reparation order, Christopher Griffin was listed as the officer, director and major stockholder of the business.
• J D B Market Corp., doing business as John’s Market, operating out of Bronx, NY, for failing to pay a $42,180 award in favor of a New York seller. As of the issuance date of the reparation order, John D. Burdo was listed as the officer, director and major stockholder of the business.
• Ashley Marketplace and Café, Inc., operating out of South Orange, NJ, for failing to pay a $20,796 award in favor of a New York seller. As of the issuance date of the reparation order, Cheol M. Kim was listed as the officer, director and major stockholder of the business.  
• Esau Alvarenga, doing business as J&E Produce, operating out of Los Angeles, for failing to pay a $15,120 award in favor of a Texas seller. As of the issuance date of the reparation order, Esau Alvarenga Perla was listed as the sole proprietor of the business.
• Vivamex International Produce LLC, operating out of Hidalgo, TX, for failing to pay a $14,800 award in favor of a California seller. As of the issuance date of the reparation order, Leonardo Guerra and Juan D. Hernandez were listed as managers/members 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.