USDA restricts seven PACA violators
USDA restricts seven PACA violators
The U.S. Department of Agriculture has imposed sanctions on seven 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 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:
- L&F Pinnacle Produce Inc., operating out of Los Angeles, for failing to pay a $107,315 award in favor of an Illinois seller. As of the issuance date of the reparation order, J. Concepcion Leon and Roger S. Franco Caceres were listed as the officers, directors and/or major stockholders of the business.
- Villa Produce Inc., operating out of Reedley, CA, for failing to pay a $46,393 award in favor of a California seller. As of the issuance date of the reparation order, Jesus Villarreal was listed as the officer, director and major stockholder of the business.
- JMJ Distributors LLC, operating out of Bronx, NY, for failing to pay a $34,010 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Jose Miguel Jimenez was listed as the manager/member of the business.
- Big Produce LLC, operating out of Pharr, TX, for failing to pay a $13,120 award in favor of a Texas seller. As of the issuance date of the reparation order, Marysol Gutierrez Barajas and Jose Castro were listed as members of the business.
- BF Yang Foods LLC, operating out of Saint Paul, MN, for failing to pay an $11,768 award in favor of a Texas seller. As of the issuance date of the reparation order, Thai Yang and Teng Yang were listed as members/managers of the business.
- Moriah Family Produce LLC, operating out of San Diego, for failing to pay a $9,680 award in favor of a California seller. As of the issuance date of the reparation order, Sonia Gomez was listed as the manager/member of the business.
- Gro Organics LLC, operating out of Covina, CA, for failing to pay a $4,556 award in favor of a California seller. As of the issuance date of the reparation order, Edward Palomo was listed as the manager/member 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.