WASHINGTON, DC - A recent release from the United States Department of Agriculture (USDA) has indicated the organization imposed sanctions on three produce businesses for allegedly failing to meet contractual obligations to the sellers of produce they purchased from. Additionally, the businesses failed to pay reparation awards amounting to $145,812 issued under the Perishable Agricultural Commodities Act (PACA).

Direct from the USDA Agricultural Marketing Service:

These 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 approval from USDA.

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

• C. Liberatore, operating out of Hartford, Connecticut, for failing to pay a $26,903 award in favor of a New York seller. As of the issuance date of the reparation order, Carmine Liberatore was listed as the sole member of the business

• Marchella of NY, operating out of Oceanside, New York, for failing to pay a $103,509 award in favor of a New York seller. As of the issuance date of the reparation order, Manashe Yukhananov was listed as the sole officer, director, and stockholder of the business

• Prometo Produce Corp., operating out of McAllen, Texas, for failing to pay a $15,400 award in favor of a Minnesota seller. As of the issuance date of the reparation order, Vicente Diaz Moreno was listed as the sole officer, director, and stockholder 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. 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.

For contact information, and to read the release in its entirety, click here.

USDA Agricultural Marketing Service