USDA restricts PACA violators in California and Nevada

The US Department of Agriculture (USDA) has imposed sanctions on three food companies for failing to meet their contractual obligations to the sellers of the produce they purchase and for failing to pay reparation premiums under the Perishable Agricultural Commodities Act (PACA). These sanctions include the suspension of the companies’ PACA licenses and prohibiting the companies’ key operators from engaging in PACA-licensed business or other activities without USDA approval.

The following companies and individuals are currently banned from working in the fruit and vegetable industry:

  • J&A Fresh Produce LLC, which operates out of Stockton, California, for failing to pay a $39,842 bounty in favor of a Texas seller. As of the issuance date of the indemnity order, Jesus Cabanillas was listed as the only member of the company.
  • Golden Blues Inc., which operates out of Marina Del Rey, California, for failing to pay a $36,000 bounty benefiting an Arizona seller. As of the issuance date of the indemnity order, Marta O. Uffelmann Ledezma was listed as the Company’s chief executive officer, director and shareholder.
  • Fresh Excellence LLC, which operates out of Las Vegas, Nevada, for failing to pay a $135,893 bounty benefiting a California seller. As of the date the indemnity order was issued, Eliseo Trujillo was listed as the sole shareholder of the company.

PACA provides an administrative forum for handling disputes related to product transactions; This can result in the USDA issuing a reparations order seeking damages if those fail to meet their contractual obligations in the purchase and sale of fresh and frozen fruits and vegetables. The USDA has an obligation to suspend the license or impose sanctions on an unlicensed company that fails to pay the PACA reparations awarded to it, as well as to impose restrictions on principals who, when awarded the contract, considered responsibly affiliated with the company are. Such persons, including sole proprietorships, partners, members, managers, officers, directors or major shareholders, may not be employed by or associated with a PACA licensee without the approval of the USDA.

By imposing these penalties, the USDA continues to enforce prompt and full payment for products while protecting the rights of sellers and buyers in the marketplace.

Click here for an overview of companies that have previously violated PACA.

For more informations:
PAKA
Dispute Resolution Department
Phone: +1 (202) 720-2890
[email protected]
www.ams.usda.gov

Source