Release No.: 117-17
WASHINGTON, Oct. 18, 2017 – 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:
- Safe Produce Inc., operating out of Nogales, Ariz., for failing to pay a $7,760 award in favor of a California seller. As of the issuance date of the reparation order, Rebecca J. Favela and Scott A. Favela were listed as the officers, directors and/or major stockholders of the business.
- Manuel Gomez, doing business as Steele Canyon Produce, operating out of Chula Vista, Calif., for failing to pay a $49,809 award in favor of a California seller. As of the issuance date of the reparation order, Manuel A. Gomez was listed as the sole proprietor of the business.
- Victor Guerrero, doing business as Camila Fresh, operating out of McAllen, Texas, for failing to pay a $23,006 award in favor of a Texas seller. As of the issuance date of the reparation order, Victor Guerrero was listed as the officer, director and major stockholder of the business.
- Maria Soto, doing business as Mary’s Produce, operating out of McAllen, Texas, for failing to pay a $1,290 award in favor of an Illinois seller. As of the issuance date of the reparation order, Maria C. Soto was listed as the sole proprietor of the business.
PACA provides 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. 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.
The PACA Division, which is part of USDA’s Agricultural Marketing Service (AMS), regulates fair trading practices of produce businesses that are operating subject to PACA including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Our experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how 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 PACAdispute@ams.usda.gov regarding this matter.
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