The U.S. Department of Agriculture has imposed sanctions on five 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. 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:
Urban Fresh Produce Inc., operating out of San Diego, Calif., for failing to pay a $15,460 award in favor of a California seller. As of the issuance date of the reparation order, Mirna Gutierrez was listed as the officer, director and/or major stockholder of the business.
Sunrise Produce Inc., operating out of Jessup, Md., for failing to pay a $13,414 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Huinil Emergildo, Ramirez Aurelio, Araceli Ortiz and Liliana Cortez were listed as the officers, directors and/or major stockholders of the business.
PFI Express Inc., operating out of Valley Stream, N.Y., for failing to pay a $25,014 award in favor of a Hawaii seller. As of the issuance date of the reparation order, Romilda Silva was listed as the officer, director and/or major stockholder of the business.
Temple Turmeric Inc., doing business as Temple Beverages, operating out of Brooklyn, N.Y., for failing to pay a $21,416 award in favor of a California seller. As of the issuance date of the reparation order, Daniel Sullivan was listed as the officer, director and major stockholder of the business.
Eli Gonzalez Distributors Inc., operating out of Pharr, Texas, for failing to pay a $4,800 award in favor of a Texas seller. As of the issuance date of the reparation order, Elida Garcia Villegas was listed as the officer, director and/or major stockholder of the business.
PACA provides an administrative forum to handle disputes involving 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.
Click here for an overview of companies who previously violated PACA.
For more information:
John Koller
USDA
Tel: +1 202 720 2890
Email: PACAdispute@usda.gov
www.ams.usda.gov