WASHINGTON, DC - The United States Department of Agriculture (USDA) has imposed sanctions on three 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). 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 the USDA.

Direct from the USDA Agricultural Marketing Service:

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

• FP & H, doing business as Fleischmanns Produce, operating out of Doral, Florida, for failing to pay a $30,345 award in favor of a Florida seller. As of the issuance date of the reparation order, Jesus Menendez was listed as the sole member of the business
• J.A. Blurr Farms, operating out of Hurlock, Maryland, for failing to pay a $23,588 award in favor of an Arkansas seller. As of the issuance date of the reparation order, Shamar T. Hyatt was listed as the manager and member of the business
• H&L Fresh Produce, operating out of South Sioux City, Nebraska, for failing to pay a $4,131 award in favor of a Texas seller. As of the issuance date of the reparation order, Lusio Torres was listed as the manager 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.

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.

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.