USDA Restricts PACA Violators in Michigan and Texas From Operating in the Produce Industry
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) recently imposed sanctions on two produce businesses for failing to meet contractual obligations to the sellers of produce they purchased, as well as failing to pay reparation awards issued amounting to $59,305 under the Perishable Agricultural Commodities Act (PACA).
Direct from the USDA Agricultural Marketing Service:
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.
The following businesses and individuals are currently restricted from operating in the produce industry:
- D’Amore Produce Solutions LLC, operating out of Saginaw, Michigan, for failing to pay a $40,405 award in favor of an Arkansas seller. As of the issuance date of the reparation order, Andrew M. Damore was listed as a member of the business
- Gutville Produce LLC, operating out of McAllen, Texas, for failing to pay an $18,900 award in favor of a Texas seller. As of the issuance date of the reparation order, Ovidio G. Gutierrez Trevino was listed as the manager and 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 the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
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