USDA restricts Perishable Agricultural Commodities Act violators

The USDA has imposed sanctions on several 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).

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 USDA approval.

The following businesses and individuals are currently restricted from operating in the produce industry:

• Villalobos Produce Distributors Inc., operating out of Chula Vista, California, for failing to pay a $16,910 award in favor of a California seller. As of the issuance date of the reparation order, Andrea Villalobos and Rogelio Chavez-Borbon were listed as the officers, directors and major shareholders of the business.
• Hialeah Tomatoes & Fresh Produce Inc., operating out of Miami, Florida, for failing to pay a $95,610 award in favor of a Florida seller. As of the issuance date of the reparation order, Helen Oliveira and Jorge Gonzalez were listed as the officers, directors and major shareholders of the business.
• Go Fresh LLC, operating out of Dallas, Texas, for failing to pay a $3,000 award in favor of a Texas seller. As of the issuance date of the reparation order, George Carbajal was listed as the sole member of the business.
• Fresh Crop Dist., operating out of Plant City, Florida, for failing to pay a $16,280 award in favor of a Texas seller. As of the issuance date of the reparation order, Justin Daye was listed as the sole officer, director and stockholder of the business.
• Agritrade Farms LLC, operating out of Deerfield, Florida, for failing to pay a $2,985 award in favor of a Georgia seller. As of the issuance date of the reparation order, Ayal Raz was listed as the sole member of the business.
• Sunbelt Produce Distributors Inc., operating out of Forest Park, Georgia, for failing to pay a $85,303 award in favor of a Wisconsin seller. As of the issuance date of the reparation order, Bernard Syme was listed as the sole officer, director and stockholder of the business.
• ARR LLC, operating out of Nashville, Tennessee, for failing to pay a $23,831 award in favor of a Texas seller. As of the issuance date of the reparation order, Carlos Arrendondo was listed as the sole member of the business.
• E&RRR LLC, operating out of Jonesboro, Arkansas, for failing to pay a $9,110 award in favor of a California seller. As of the issuance date of the reparation order, Reynaldo Cano and Efren Montano were listed as members and managers of the business.
• Otto Brehm Inc., operating out of Yonkers, New York, for failing to pay a $12,361 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Ernest G. Brehm, Jr., and Michael W. Brehm were listed as the officers, directors and/or major stockholders of the business. Linda Tritto was also listed as a principal of the business at the time of the order. However, Linda Tritto has been found not responsibly connected to Otto Brehm Inc. at the time of the violation.
• Blue Light Produce LLC, operating out of Charlottesville, Virginia, for failing to pay a $93,322 award in favor of an Arizona seller. As of the issuance date of the reparation order, Christopher J. Meduri was listed as the member of the business.

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, according to the USDA website.

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.

USDA sanctions lifted

New Start Produce Group LLC satisfied a $33,214 reparation order issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transactions.

The Dallas, Texas, company can continue operating in the produce industry upon applying for and being issued a PACA license. Carlos Chavez and Ruben Ayala were listed as the members of the business and may now be employed by or affiliated with any PACA licensee.