USDA imposes sanctions on six produce businesses for PACA violations

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 six 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:

  • Montecito Fresh Produce Inc., operating out of Los Angeles, Calif., for failing to pay a $22,320 award in favor of a California seller. As of the issuance date of the reparation order, Evangelino Reynoso and Manuel Reynoso were listed as the officers, directors and/or major stockholders of the business.
  • Florida Cool Cargo Inc., operating out of Miami, Fla., for failing to pay a $43,066 award in favor of a Florida seller. As of the issuance date of the reparation order, Jesse Fernandez was listed as the officer, director and/or major stockholder of the business.
  • Jusgo Duluth LLC, operating out of Duluth, Ga., for failing to pay a $135,785 award in favor of a California seller. As of the issuance date of the reparation order, Wang Lin was listed as a member or manager of the business.
  • Hunter Bros. Inc., operating out of Philadelphia, Pa., for failing to pay a $21,061 award in favor of a California seller. As of the issuance date of the reparation order, Frank Wiechec, III was listed as the officer, director and/or major stockholder of the business.
  • Y Farms LLC, operating out of Newport, R.I., for failing to pay a $7,288 award in favor of a Florida seller. As of the issuance date of the reparation order, Eric Guzman was listed as a member or manager of the business.
  • Cruisin’ and Diamond for failing to pay $1,135,650 to four sellers for produce that was purchased, received and accepted in interstate and foreign commerce from May 2016 to September 2017. This is in violation of the PACA.  Cruisin’ and Diamond cannot operate in the produce industry until March 4, 2022, and then only after they apply for and are issued a new PACA license by USDA. The company’s principal, Joseph Thornton, may not be employed by or affiliated with any PACA licensee until March 4, 2021, and then only with the posting of a USDA approved surety bond.

Click here for an overview of companies who previously violated PACA.

For more information: 
John Koller
USDA
Tel: +1 202 720 2890
Email: PACAdispute@usda.gov 
www.ams.usda.gov


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