The U.S. Department of Agriculture (USDA) has lifted PACA reparations sanctions on three produce companies.
Arizona Marketing Produce Distributors Inc. satisfied a $12,100 reparation order issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transactions.
The Phoenix, AZ company has met its obligations and is free to operate in the produce industry. Lorin N. Hobbs was listed as the officer, director and major stockholder of the business and may now be employed by or affiliated with any PACA licensee.
The Andean Fresh Fruit Corp. also satisfied a reparation order in the amount of $33,456 issued under PACA involving unpaid produce transactions.
The Opa-Locka, FL company can continue operating in the produce industry upon applying for and being issued a PACA license. Matias Espinosa was listed as the officer, director and/or major stockholder of the business and may now be employed by or affiliated with any PACA licensee.
And Lorex Produce LLC satisfied a $48,826 reparation order issued under PACA involving unpaid produce transactions.
The Rio Rico, AZ company can continue operating in the produce industry upon applying for and being issued a PACA license. Francisco Alejandro Lopez Rodriguez and Enok Aristiga Ayala were listed as members of the business and may now be employed by or affiliated with any PACA licensee.
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.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individual.
Click here for an overview of companies who previously violated PACA.
For more information:
John Koller
USDA
Tel: +1 202 720 2890
[email protected]
www.ams.usda.gov