Release No.: 073-17
WASHINGTON, May 1, 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:
- Bbc in Motion Inc., doing business as Adriana’s Farms, operating out of La Jolla, Calif., for failing to pay a $7,406 award in favor of a Massachusetts seller. As of the issuance date of the reparation order, Adriana Bustamante and Bernardo Bustamante were listed as the officers, directors and/or major stockholders of the business.
- Parma Fruit Inc., operating out of La Quinta, Calif., for failing to pay a $99,150 award in favor of a Florida seller. As of the issuance date of the reparation order, William L. Penny was listed as the officer, director and major stockholder of the business.
- Ramxico Inc., operating out of Doral, Fla., for failing to pay a $19,973 award in favor of a Texas seller. As of the issuance date of the reparation order, Evelyn Acevedo and Ramon Bartolome were listed as the officers, directors and/or major stockholders of the business.
- A & E World Supplier Produce LLC, operating out of McAllen, Texas, for failing to pay a $14,140 award in favor of a Texas seller. As of the issuance date of the reparation order, Antonio G. Cueto and Maria E. Gonzalez were listed as the members 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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