The U.S. Department of Agriculture (USDA) has filed an administrative complaint against several companies including:
- L&L Produce LLC.: The company, operating from Texas, allegedly failed to make payment promptly to two produce sellers in the amount of $326,281 from December 2022 through August 2023, in violation of the Perishable Agricultural Commodities Act (PACA).
- G & S Produce, Inc.: Operating from California, the company allegedly failed to make payment promptly to 19 produce sellers in the amount of $333,072 from August 2023 through August 2024, in violation of PACA.
- IE AAA LLC, Citrus World.: The company, operating from New York, allegedly failed to make payment promptly to 17 produce sellers in the amount of $1,960,321 from March 2024 through March 2025, in violation of PACA.
- BLJR Distribution LLC.: The company, operating from New York, allegedly failed to make prompt payment to 16 produce sellers in the amount of $576,663 from October 2024 through March 2025, in violation of PACA.
USDA has also imposed sanctions on a number of produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under PACA.
© USDA
The following businesses/individuals are currently restricted from operating in the produce industry:
- Produce Cem Ortega, Inc.: Commerce, Calif., for failing to pay $11,804 to a California seller. Miguel S. Ortega was listed as officer, director and major stockholder.
- Promise Land Produce LLC: Jacksonville, Fla., for failing to pay $3,723 to a Florida seller. John L. Lundy was listed as the manager/member of the business.
- Delcer Fresh Produce, Inc.: Las Vegas, Nev., for failing to pay $46,829 to a Nevada seller. Jorge Delgado Barrera was listed as officer, director and major stockholder.
- Hong Kong Distribution Corporation: Maspeth, N.Y., for failing to pay $57,874 to a Texas seller. Jeffrey Wu and Ioc Heng Ip were listed as officers, directors and/or major stockholders.
- AMS H International Global Services, Inc.: Pharr, Texas, for failing to pay $124,394 to a Texas seller. Heriberto Lopez was listed as officer, director and major stockholder.
- Del Rancho Produce LLC: Rio Rico, Ariz., for failing to pay $17,398 to a California seller. Maria Arellano was listed as sole member of the business.
- ARG Global Trade LLC: Kerman, Calif., for failing to pay $131,419 to a Washington seller. Jose Ramirez Carmona was listed as manager/member. Another principal of the business at the time of the order was Jamie Verduzco.
- Guercio & Sons: Buffalo, N.Y., for failing to pay $27,547 to a New York seller. John Guercio, Salvatore Guercio and Gaetano Guercio were listed as officers, directors, and major shareholders.
- Apex Solution Group LLC: Los Angeles, Calif., for failing to pay $14,527 to a Missouri seller. Charde Crenshaw was listed as the member/manager.
- Fresh Life Co.: South Pasadena, Calif., for failing to pay $31,976 to a Texas seller. Jennifer R. Abarca was listed as officer, director and major stockholder.
- New Asian Tropical Produce LLC: Homestead, Fla., for failing to pay $19,142 to a Florida seller. Gustavo Patricio Espinosa was listed as member/manager.
- Berry Sunny International LLC: Sherman, S.D., for failing to pay $45,117 to an Oregon seller. Isaias De Loera Lopez, Fernando Martinez Garcia and Amy D. Martinez were listed as members/managers.
- Martinez Fresh Produce LLC: Dallas, Texas for failing to pay $31,717 to a Texas seller. Arturo Martinez Isguerra was listed as manager/member.
Meanwhile, Mission Driven Distributors LLC of Houston, Texas, has posted a $50,000 surety bond with USDA.
Pursuant to PACA, the company was required to post the bond following its principals' involvement in bankruptcy. The company posted the bond as a prerequisite to obtain a new license to operate in the produce industry.
USDA will hold the bond for three years and nine months to provide assurance that the licensee will conduct business according to the PACA and will pay any reparation awards that may be issued against it in connection with the transactions occurring within the period the bond is held.
The USDA also announced that Alvarez Farms LLC of Everett, Wash. has satisfied a $39,004 reparation order resulting from unpaid produce transactions under PACA. The company is now free to operate in the produce industry. Ruben Alvarez was listed as member/manager of the business and may now be employed by or affiliated with any PACA licensee.
For more information:
PACA Investigative Enforcement Branch (PACA violations; surety bond)
Tel: +1 (202) 720-6873
[email protected]
Penny Robinson-Landrigan (PACA violators; reparation order)
Tel: +1 (202) 720-2890
[email protected]
https://www.ams.usda.gov/
