The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). These sanctions include suspending the businesses’ PACA licenses and barring principal operators of the businesses from engaging in PACA-licensed business or other activities without USDA approval.
These businesses/individuals are currently restricted from operating in the produce industry:
- La Michoacana Fruit Wholesale Inc. (Los Angeles, California) for failing to pay $106,628 in favor of a California seller. As of the issuance date of the order, Jaqueline P. Garduno was listed as the officer, director and major stockholder of the business.
- Figota Produce Co. LLC, (Las Vegas, Nevada) for failing to pay $18,900 in favor of a Texas seller. As of the issuance date of the order, Jose Jesus Figueroa was listed as the member and manager of the business.
- JD Produce Maspeth LLC (Maspeth, New York) for failing to pay $3,352 in favor of a New York buyer. As of the issuance date of the order, Shengbo Dong was listed as the member and manager of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of an order requiring damages to be paid by those not meeting 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.
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 USDA has also filed an administrative complaint against California Fresh Citrus Company (CFCC) for alleged violations of PACA. The company, operating from California, allegedly failed to make payment promptly to two produce sellers for $1,128,040 from March 2019 through March 2020.
CFCC will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.
Click here for an overview of companies that previously violated PACA.
For more information:
Penny Robinson-Landrigan (sanctions)
USDA
Tel.: +1 (202) 720-2890
[email protected]
www.ams.usda.gov
Corey Elliott (administrative complaint)
USDA
Tel.: +1 (202) 720-6873
[email protected]
www.ams.usda.gov