As part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices within the U.S. produce industry, the Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failing to meet their contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the PACA. 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 approval from USDA. By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
The following businesses and individuals are currently restricted from operating in the produce industry:
- NS&J World Trading Corp., operating out of Miami, Fla., for failing to pay a $155,441 award in favor of a Puerto Rico seller. As of the issuance date of the reparation order, Silvia Penaranda was listed as the officer, director and major stockholder of the business.
- So Ono Food Products LLC, operating out of Honolulu, Hawaii, for failing to pay a $118,362 award in favor of a Washington seller. As of the issuance date of the reparation order, Richard C. Wheeler, Fresh Foods Hawaii, Inc., and Uzor U. Nwoko were listed as members of the business.
- Agro Torres Produce LLC, operating out of McAllen, Texas, for failing to pay an $11,323 award in favor of a Massachusetts seller. As of the issuance date of the reparation order, Osvelia Torres Chavez and Ricardo Martinez Moreno were listed as 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.
In other news the USDA announced that Spring Creek Produce LLC satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
Subsequent to the notification of the imposition of sanctions on June 26, 2019, USDA learned that the Greenfield, Tenn., company had met its obligations. Spring Creek Produce LLC is now free to operate in the produce industry. Bobby Callins, Steven Willis, Jr., Phil Gordon and Chris Gordon Davis are listed as members of the business and may now be employed by or affiliated with any PACA licensee.
Click here for an overview of companies who previously violated PACA.
For more information:
John Koller
USDA
Tel: (202) 720-2890
Email: PACAdispute@usda.gov