As part of its efforts to enforce the Perishable Agricultural Commodities Act and ensure fair trading practices within the U.S. produce industry, the Department of Agriculture 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:
- G & A Foodservice Inc., doing business as Fresh Express Produce, operating out of Addison, Ill., for failing to pay a $7,095 award in favor of an Illinois seller. As of the issuance date of the reparation order, George Panagakis was listed as the officer, director and major stockholder of the business.
- Wholesale Mexcol LLC, operating out of Webster, Texas, for failing to pay an $11,840 award in favor of a California seller. As of the issuance date of the reparation order, Gustavo Soto Gomez was listed as a member of the business.
- Big Tex Produce, operating out of Dallas, Texas, for failing to pay a $19,092 award in favor of a Texas seller. As of the issuance date of the reparation order, Maria Rayas and Viridiana Rodriguez were listed as members of the business.
- Cal Tex Produce L.P., operating out of Dallas, Texas, for failing to pay an $8,030 award in favor of an Arkansas seller. As of the issuance date of the reparation order, Cal Texas Dissolution LLC and Johnny D. Rodriguez were listed as partners of the business. Another principal of the business at the time of the order was Jimmy W. Hutton. He has challenged his responsibly connected status.
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.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
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