USDA Restricts PACA Violators in California, Georgia, and Texas from Operating in the Produce Industry
WASHINGTON, D.C. - The USDA has barred three produce businesses for failure to pay reparation awards under the Perishable Agriculture Commodities Act (PACA).
According to a press release from the USDA, the following businesses and individuals are currently restricted from operating in the produce industry:
- Global Fresh Inc., a Los Angeles, California-based company has failed to pay a $26,900 award in favor of a Tennessee seller. As of the issuance date of the reparation order, Guillermo Alvarado was listed as the Officer, Director, and major stockholder of the business.
- LA Central Produce LLC, a Forest Park, Georgia-based company, failed to pay a $140,693 award in favor of a Texas seller. As of the issuance date of the reparation order, Juan C. Dorantes Bustamante and Jose J. Morales were listed as members of the business.
- Ideal Sales Inc., a Dallas, Texas-based company, failed to pay a $12,480 award in favor of a California seller. As of the issuance date of the reparation order, Jason Labarba was listed as the Officer, Director, and major stockholder of the business.
The 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.
In the past three years, the USDA resolved approximately 4,250 PACA claims involving more than $77 million. USDA experts have also assisted more than 7,000 callers with issues valued at approximately $110 million. Individuals, including sole proprietors, Partners, members, Managers, Officers, Directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service, PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.
