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

• Fernando Acevedo, Jr., doing business as La Familia Produce, operating out of Nogales, Arizona, for failing to pay a $310,518 award in favor of a Texas seller. As of the issuance date of the reparation order, Fernando Acevedo, Jr. was listed as the sole proprietor of the business

• Arturo Hernandez doing business as The Avo King, operating out of Camarillo, California, for failing to pay a $41,525 award in favor of a Texas seller. As of the issuance date of the reparation order, Arturo Hernandez was listed as the sole proprietor of the business

• Susan Gilbert doing business as Flagler Palm Coast Farmers Market, operating out of Ormond Beach, Florida, for failing to pay a $43,501 award in favor of a Florida seller. As of the issuance date of the reparation order, Susan Gilbert was listed as the sole proprietor 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.

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USDA Agricultural Marketing Service