WASHINGTON, D.C. - The USDA has imposed sanctions on two produce businesses in Texas for failure to pay reparation awards issued under PACA.

According to a USDA press release, the following businesses and individuals are now restricted from operating in the produce industry: 

• Dallas-based Martinez Fresh Produce LLC, for failing to pay a $14,000 award in favor of a Texas seller. As of the issuance date of the reparation order, Arturo Martinez Isguerra was listed as a member of the business.
• Lewisville-based Bartush Schnitzius Foods Company, for failing to pay a $45,076 award in favor of a California seller. As of the issuance date of the reparation order, Wayne L. Musgrave and Jose M. Rubi were listed as the Officers, Directors, and/or major stockholders of the business.

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. 

In the past three years, USDA resolved approximately 4,250 PACA claims involving more than $77 million. Our experts also assisted more than 7,000 callers with issues valued at approximately $110 million.  These are just two examples of how USDA continues to support the fruit and vegetable industry.

Agricultural Marketing Service