WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has imposed sanctions on two California produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
Fontana Wholesale
Operating out of Fontana, California; restricted for failing to pay a $10,762 award in favor of a California seller. As of the issuance date of the reparation order, Rafael Flores was listed as the officer, director and major stockholder of the business.
Mpgwest LLC
Operating out of La Quinta, California; restricted for failing to pay a $293,949 award in favor of a California seller. As of the issuance date of the reparation order, William L. Penny was listed as a member of the business.
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.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Its experts also assisted more than 8,000 callers with issues valued at approximately $140 million.
