WASHINGTON, DC - The United States Department of Agriculture (USDA) recently announced that it has imposed sanctions on three produce businesses. These sanctions come as the businesses failed to meet contractual obligations to the sellers of produce they purchased and failed to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

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:

• La Michoacana Fruit Wholesale, operating out of Los Angeles, California, for failing to pay a $106,628 award in favor of a California seller. As of the issuance date of the reparation order, Jaqueline P. Garduno was listed as the officer, director, and major stockholder of the business

• Figota Produce Co., operating out of Las Vegas, Nevada, for failing to pay an $18,900 award in favor of a Texas seller. As of the issuance date of the reparation order, Jose Jesus Figueroa was listed as the member and manager of the business

• JD Produce Maspeth, operating out of Maspeth, New York, for failing to pay a $3,352 award in favor of a New York buyer. As of the issuance date of the reparation order, Shengbo Dong was listed as the member and manager 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