The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
Fresh Choice LLC, operating out of Miami, Fla., for failing to pay a $24,120 award in favor of a Tennessee seller. As of the issuance date of the reparation order, Alejandro R. Hernandez was listed as a member of the business.
Family Budget Supermarket 2 Inc., operating out of Pompano Beach, Fla., for failing to pay a $10,834 award in favor of a Florida seller. As of the issuance date of the reparation order, Dicarlo Pujols and Jose A. Pujols were listed as the officers, directors, and/or major stockholders of the business.
AP Royal Produce Inc., operating out of Brooklyn, N.Y., for failing to pay a $54,120 award in favor of a Washington seller. As of the issuance date of the reparation order, Aleksandr Yakubov was listed as the officer, director, and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued 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.
The PACA Division, which is part of USDA’s Agricultural Marketing Service (AMS), regulates fair trading practices of produce businesses that are operating subject to PACA including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Our experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how the USDA continues to support the fruit and vegetable industry.
Source: USDA