USDA Reports PACA Actions against Four Produce Businesses

AMS No. 141-10

Nadine Wilkins (202)720-8998Nadine.wilkins@ams.usda.gov

WASHINGTON, July 20, 2010 – The U.S. Department of Agriculture has cited four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

These businesses have been barred from operating in the produce industry until their awards are paid. The businesses were served complaints by USDA and were given the opportunity to respond. USDA subsequently ordered payment of the amounts mentioned below.

The businesses are:

--Juice Produce Co. Inc., operating in Nogales, Ariz., for failing to pay a $28,716 award in favor of an Arizona seller. The officers, directors, and major stockholders are Francisco Grijalva, Rene Grijalva, and Hugo Grijalva.

--Marina Produce Inc., operating in Marina Del Rey, Calif., for failing to pay a $25,869 award in favor of an Arizona seller. The officers, directors, and major stockholders are Julio A. Ledezma and Marta O. Uffelmann Ledezma.

--Tropical Depot Inc., operating in Bronx, N.Y., for failing to pay a $19,885 award in favor of a Florida seller. The officer, director, and stockholder is Luis N. Vargas. Another principal has challenged his responsibly connection with this order.

--Eddie’s Produce Express Inc., operating in Brooklyn, N.Y., for failing to pay a $5,307 award in favor of a Florida seller. The sole officer, director, and stockholder is Eddie Isayev.

PACA provides for damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. Interstate produce traders operating as commission merchants, dealers or brokers, and conducting a sufficient volume of business must be USDA-licensed.

USDA is required to suspend the license of a business that fails to pay PACA reparations awarded against it. Individuals, partners, members, officers, directors, or major stockholders associated with these businesses may not be employed by or affiliated with any PACA licensee without USDA-approval.

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