WASHINGTON, DC - The United States Department of Agriculture (USDA) recently imposed sanctions on five 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). Collectively, the companies failed to pay a total of $460,576.

Direct from the USDA Agricultural Marketing Service:

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

• Golden Valley Group Corp, operating out of Pembroke, Florida, for failing to pay a $16,461 award in favor of a Florida seller. As of the issuance date of the reparation order, Aleksei Attara was listed as the sole officer, director, and stockholder of the business.
• Miami Growers Inc., operating out of Jersey City, New Jersey, for failing to pay a $16,426 award in favor of a Hawaii seller. As of the issuance date of the reparation order, Bhavin Hajariwala and Kantibhai Patel were listed as the officers, directors, and major shareholders of the business.
• L&L Produce LLC, operating out of Houston, Texas, for failing to pay a $367,827 award in favor of a Texas seller. As of the issuance date of the reparation order, Adrian Luna was listed as the sole member of the business.
• South Texas Broker LLC, operating out of Mission, Texas, for failing to pay a $12,882 award in favor of a Texas seller. As of the issuance date of the reparation order, Samuel Arias Galdeano and Jesus Ovalle were listed as the members of the business.
• JR Produce and Food Service Inc., operating out of El Paso, Texas, for failing to pay a $46,980 award in favor of a Minnesota seller. As of the issuance date of the reparation order, Marcos Enriquez Jr. and Daniel Enriquez were listed as the officers, directors, and major shareholders 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.