Nadine Wilkins (202) 720-8998nadine.wilkins@ams.usda.gov
WASHINGTON, Dec. 18, 2012 – 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:
--Del Monte Farms LLC, (not affiliated with Del Monte Corporation or Del Monte Foods) operating out of Vineland, N.J., for failing to pay a $4,760 award in favor of a Pennsylvania seller. As of the issuance date of the reparation order, Daniel Del Monte was listed as a member of the business.
--Produce Express of AZ LLC, operating out of Yuma, Ariz., for failing to pay a $22,199 award in favor of an Arizona seller. As of the issuance date of the reparation order, Nava Pablo was listed as a member of the business.
--Wild West Produce LLC, operating out of Paso Robles, Calif., for failing to pay a $1,634 award in favor of a California seller. As of the issuance date of the reparation order, Amy Luera was listed as a member of the business.
--Raul Moreno Flores, doing business as Fresh 2U, operating out of Los Angeles, Calif., for failing to pay a $2,000 award in favor of a California seller. As of the issuance date of the reparation order, Raul Moreno Flores was listed as the sole proprietor of the business.
PACA provides for 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. 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, managers, 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 Division, regulates fair trading practices of produce businesses 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 AMS, an agency within USDA.
In the past three years, USDA resolved approximately 5,000 claims filed under the PACA involving almost $96 million. This is just one more way USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Chief, Dispute Resolution Branch 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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