WASHINGTON, DC - The United States Department of Agriculture (USDA) recently announced that it has imposed sanctions on Miami, Florida-based American Fruit & Produce Corp. for violating the Perishable Agricultural Commodities Act (PACA). The sanctions include barring the company and its principal operator from engaging in PACA-licensed business or other activities without USDA approval.

Direct From the USDA Agricultural Marketing Service:

American Fruit & Produce Corp. failed to pay $1,034,745 to 18 sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from March 2018 to October 2022. This is in violation of the PACA. American Fruit & Produce Corp. cannot operate in the produce industry until September 6, 2026, and then only after they apply for and are issued a new PACA license by USDA.

The company’s principals, Hugo Acosta Jr. and David Acosta, may not be employed by or affiliated with any PACA licensee until September 6, 2025, and then only with the posting of a USDA-approved surety bond.

USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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 prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

To read the release in its entirety, click here.