USDA Restricts PACA Violators in California, Florida and Minnesota from Operating in the Produce Industry

Date
Thursday, February 16, 2017 - 10:00am

Release No.: 031-17

WASHINGTON, Feb. 16, 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:

  • United Fresh Produce, operating out of Riverside, Calif., for failing to pay a $32,043 award in favor of a California seller.  As of the issuance date of the reparation order, Regina E. Erickson and Barbara J. Jamili were listed as the officers, directors and/or major stockholders of the business.
  • Victor Packing Fruit & Produce Inc., operating out of Los Angeles, Calif., for failing to pay a $25,427 award in favor of a California seller.  As of the issuance date of the reparation order, Victor Ortiz was listed as the officer, director and major stockholder of the business.
  • J & R Fresh Produce LLC, operating out of Tampa, Fla., for failing to pay a $45,101 award in favor of a Virginia seller.  As of the issuance date of the reparation order, Shaheed Ackbar was listed as a member of the business.
  • 999 LLC, operating out of St. Paul, Minn., for failing to pay a $4,511 award in favor of a Minnesota seller.  As of the issuance date of the reparation order, Joua Thao was listed as a member 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 the 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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