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 $93,489 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:

• Cadence Gourmet, doing business as Cadence Kitchen, operating out of Corona, California, for failing to pay a $56,609 award in favor of a California seller. As of the issuance date of the reparation order, Brian & Tina Wynn Community Property Trust, Brian Wynn Family Trust, Alexander Klein, and Brian J. Wynn were listed as managers and members of the business

• San Isidro Fresh Produce, operating out of Chicago, Illinois, for failing to pay a $29,680 award in favor of a Texas seller. As of the issuance date of the reparation order, Emmanuel Garcia was listed as the officer, director, and major stockholder of the business

• First Quality Produce, operating out of McAllen, Texas, for failing to pay a $7,200 award in favor of a Texas seller. As of the issuance date of the reparation order, Oscar Manuel Corral Vega and Elizabeth Vega Trujillo were listed as managers and members 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