WASHINGTON, DC - Sanctions were recently imposed by the United States Department of Agriculture (USDA) as four produce businesses allegedly failed to meet contractual obligations as stipulated under the Perishable Agricultural Commodities Act (PACA).
The organizations based in California, Michigan, and Texas failed to pay sellers of produce they purchased from and failed to pay reparation awards amounting to $318,079 under the PACA. These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.
Direct from the USDA Agricultural Marketing Service:
The following businesses and individuals are currently restricted from operating in the produce industry:
- Mos Can Everything, operating out of Los Angeles, California, for failing to pay a $23,580 award in favor of a California seller. As of the issuance date of the reparation order, Jaime Ortega was listed as the sole officer, director, and stockholder of the business
- Produce For Less, operating out of Dearborn, Michigan, for failing to pay a $21,386 award in favor of a Michigan seller. As of the issuance date of the reparation order, Hassan Mroue was listed as the sole member of the business
- PH Quality Produce, operating out of Pharr, Texas, for failing to pay a $265,888 award in favor of a Florida seller. As of the issuance date of the reparation order, Wade Paden was listed as the sole member of the business
- Quinteros Fruit Company, operating out of McAllen, Texas, for failing to pay a $6,955 award in favor of a Texas seller. As of the issuance date of the reparation order, Serafin Quintero Posadas and Edgar Quintero Garcia were listed as the member/managers of the business
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order 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.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
For contact information, and to read the release in its entirety, click here.
