WASHINGTON, DC - Three produce businesses have been sanctioned by the United States Department of Agriculture (USDA) for allegedly 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). The total amount was a collective $94,344.

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:

• Xalpa Fresh, operating out of Los Angeles, California, for failing to pay a $14,751 award in favor of a California seller. As of the issuance date of the reparation order, Luis Ravelo was listed as the officer, director, and stockholder of the business.

• Lucero Produce, operating out of Denver, Colorado, for failing to pay a $27,792 award in favor of a Texas seller. As of the issuance date of the reparation order, Kristin Waller and Jose Silvestre were listed as the managers and members of the business.

• US Fresh Corp., operating out of Bronx, New York, for failing to pay a $51,801 award in favor of a California seller. As of the issuance date of the reparation order, Gonzalo Jaramillo was listed as the 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