WASHINGTON, DC - The United States Department of Agriculture (USDA) 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 USDA.

Direct from the USDA Agricultural Marketing Service:

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

• Real Value Sales, operating out of Nogales, Arizona, for failing to pay a $13,098 award in favor of an Arizona seller. As of the issuance date of the reparation order, Eddie Valencia and Irene Valencia were listed as the officers, directors, and major shareholders of the business

• Planters Produce Corp., operating out of Port St. Lucie, Florida, for failing to pay an $89,120 award in favor of a Texas seller. As of the issuance date of the reparation order, Herman Oneal was listed as the sole officer, director, and stockholder of the business

• Fresh Produce Market, operating out of Brooklyn, New York, for failing to pay a $19,378 award in favor of a New York seller. As of the issuance date of the reparation order, Solomon Bondo was listed as the sole 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