WASHINGTON, Oct. 29, 2013 – The U.S. Department of Agriculture (USDA) has imposed sanctions on three 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:
- Benchmark Distributing Inc., operating out of Castroville, Calif., for failing to pay a $17,108 award in favor of a California seller. As of the issuance date of the reparation order, Chris L. Thomas was listed as the officer, director, and major stockholder of the business.
- Edgar Barajas, doing business as Premier Fresh, operating out of Whittier, Calif., for failing to pay a $208,328 award in favor of a California seller. As of the issuance date of the reparation order, Edgar Barajas was listed as the sole proprietor of the business.
- Cesar Lopez, doing business as RCS Lopez Mango Imp., operating out of Chula Vista, Calif., for failing to pay a $19,890 award in favor of a California seller. As of the issuance date of the reparation order, Cesar Lopez 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 sanction 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 Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.
In the past three years, USDA resolved approximately 5,000 claims filed under 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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