Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.gov
WASHINGTON, Dec. 23, 2010 – The U.S. Department of Agriculture (USDA) has imposed sanctions on four 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:
--Cabello Produce Corp., operating out of Hidalgo, Texas, for failing to pay a $11,000 reparation award in favor of a California seller. The responsibly connected officer, director, and major stockholder is Jorge F. Cabello.
--Richard Brown, operating out of Mesa, Ariz., for failing to pay a $157,769.54 reparation award in favor of an Idaho seller. The responsibly connected sole proprietor is Richard L. Brown.
--Best Buy, operating out of Pittsburg, Calif., for failing to pay a $5,623.50 award in favor of a California seller. The responsibly connected sole proprietor is Roberto Rodriguez.
--Selected Produce Associates Inc., operating out of Chula Vista, Calif., for failing to pay a $27,266.38 award in favor of a California seller. The responsibly connected officer, director, and major stockholder is Fernando A. Godoy.
PACA provides for an administrative forum to handle disputes over 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. The USDA is required to suspend the license of a 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, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.
The Agricultural Marketing Service (AMS), PACA Branch, regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.
In fiscal year 2010, USDA resolved approximately 2,000 claims totaling $30 million under the PACA as a result of their continued efforts to serve and protect the fruit and vegetable industry from unlawful trade practices.
For more information, contact John Koller, Director, Dispute Resolution Section at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.
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