WASHINGTON, DC - Three produce businesses allegedly failed to meet contractual obligations to the sellers of produce they purchased under the Perishable Agricultural Commodities Act (PACA). These businesses have thus had sanctions imposed upon them by the United States Department of Agriculture (USDA) for failing to pay reparation awards amounting to $774,428. 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 the USDA.
Direct from the USDA Agricultural Marketing Service:
The following businesses and individuals are currently restricted from operating in the produce industry:
- Marin Produce & Farmers Corp., operating out of Miami, Florida, for failing to pay a $10,195 award in favor of a Florida seller. As of the issuance date of the reparation order, Marin Maynor was listed as the sole officer, director, and stockholder of the business.
- Kallions Inc., operating out of Bronx, New York, for failing to pay a $736,430 award in favor of a Texas seller. As of the issuance date of the reparation order, Matthew Fallatta and Francis Chege were listed as the officers, directors, and major shareholders of the business.
- Two Fish Distribution Co., operating out of Chicago, Illinois, for failing to pay a $27,803 award in favor of a Washington seller. As of the issuance date of the reparation order, Yasmin Curtis was listed as the sole officer, director, and stockholder 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.
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