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

• America Berry Farms, operating out of Fillmore, California, for failing to pay a $6,000 award in favor of a Missouri seller. As of the issuance date of the reparation order, Adrian Mendez and Bertha F. Fernandez were listed as the officers, directors, and/or major stockholders of the business
• Tonys Tomatos, operating out of Forest Park, Georgia, for failing to pay a $19,165 award in favor of a Georgia seller. As of the issuance date of the reparation order, Antonio L. Bautista was listed as the officer, director, and major stockholder of the business
• A & P Produce, operating out of Neptune, New Jersey, for failing to pay a $55,456 award in favor of a Texas seller. As of the issuance date of the reparation order, Elicelsa Draiz and Pedro M. Iniguez Wale were listed as the members of the business
• Proof Fresh, operating out of Waldwick, New Jersey, for failing to pay a $24,570 award in favor of a Texas seller. As of the issuance of the date of the reparation order, Mauricia Vergara was listed as the officer, director, and major stockholder of the business
• Idea Fresh, operating out of Pharr, Texas, for failing to pay a $43,000 award in favor of a Texas seller. As of the issuance of the date of the reparation order, Hugo Gonzalez was listed as the member 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 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.